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04.05.2005 Business & Finance

SEC suspends broker dealer licences of three companies

By GNA

Accra, May 4, GNA - The Securities Exchange Commission (SEC) on Wednesday suspended the Broker Dealer Licences of three companies for failing to submit their Financial Audited Statements for 2004 as prescribed by law.

A statement copied to the Ghana News Agency Business Desk, named the companies as Capital Alliance Company, Databank Brokerage Services Limited and Sterling Financial Services.

The statement asked the three companies not to engage in any securities transactions until further notice.

Under the law, Audited Financial Statements are to be submitted not later than 90 days after the end of the financial year to which the report relates.

"These companies are not to engage in any securities transactions until further notice. However, securities transactions that were entered into before May 4, 2005 by any of the (above) companies should be settled."

The statement said clients, who might have placed orders for buying or selling of shares with any of the three companies were to call at their respective offices to enquire about the status of their orders and make alternative arrangements if the need arose.

The SEC said the decision had become necessary since the companies had flouted provisions of the Securities Exchange Commission Regulations, LI 1728 Regulation 33, which states that statements be submitted not later than 90 days after the end of the financial year to which the report relates.

The statement said SEC acted in accordance with the law, which authorised the Commission to revoke or suspend the licence of any licence holder who failed to comply with any condition attached to the licence.

The SEC said it remained focused and would rigorously enforce the Securities Laws and Regulation in pursuance of its responsibilities to protect the interest of the investing public and maintain the integrity of the market.

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