SEC shuts down Nyak-City Hostels Limited over unlicensed investment scheme

Securities and Exchange Commission (SEC) has shut down Nyak-City Hostels Limited for operating an investment scheme without the required licence.

The company was offering the public an investment product that promised guaranteed lifetime returns from investments in hostels over a 60-year period.

SEC Warns Businesses Against Unlicensed Investment Products

Speaking to the media, the SEC's Deputy Director-General in charge of Operations, Mensah Thompson, cautioned businesses against offering investment products to the public without first obtaining regulatory approval.

He said the Commission had intensified its monitoring and would act against any business found offering unlicensed investment products.

"We have started moving out of our offices. Once we see that you are offering any product to the market, whether the request is approved or not, we will come and shut you down," he said.

Mr Thompson added that the shutdown is also meant to serve as a warning to operators of unlicensed and fraudulent investment schemes.

Protecting Confidence in Ghana's Financial System

According to Mr Thompson, the SEC is stepping up efforts to clean up the investment market and protect public confidence in Ghana's financial system.

He said maintaining that confidence is key to attracting investment into the country and creating jobs and other economic opportunities.

"We need to sanitise our market so that the confidence that is trickling back into our economy, and bringing investment back into our country, will stay and help create jobs and opportunities for our people," he added.