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01.12.2005 Business & Finance

SEC Reprimands Databank unfair treatment of Client

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Accra, Dec. 1, GNA - The Securities and Exchange Commission (SEC) said on Thursday that it had reprimanded Databank Brokerage Limited for unfair treatment of a client contrary to the Securities Industry Law and Regulations.

Consequently, SEC has ordered Databank to pay interest at the prevailing commercial lending rate on client's dividends wrongfully held, effective from date that dividends were held until date of payment.

A statement issued by the SEC said Databank's violations included: Managing client's account without an agreement and making unauthorised purchases on behalf of client, collection and retention of clients dividend without the consent of client and issuing unsigned contract notes to client.

The rest are failure to provide statement of accounts to client, registration of shares in the joint name of Databank Brokerage Limited and client and not showing promptitude in dealing with client enquiries. The SEC said it was drawing the investing public's attention to the violations and to ask them to report similar and/or other violations to the Commission for prompt redress.

The SEC cautioned all market operators to respect the rights of investors under the law, rules and regulations since infringements would be strictly dealt with.