SEC Warns High-Return Investments Carry High Risks
The Security and Exchange Commission (SEC) recently directed Gold Coast Fund Management Ltd to cease collection or receipts of new funds from the public.
In a statement, SEC said, “The Commission has directed Gold Coast Fund Management Ltd to cease collection or receipts of new funds or investments from the investing public until all clients and investors with outstanding matured investments have been paid or mutually agreed settlement terms reached.”
But at least GHS 200 million remained locked up in trouble gold dealership, Menzgold Company Limited.
Menzgold investors were promised 7% to 10% monthly returns on special gold collectibles bought and deposited with the company.
However, the company began crumbling in September 2019 after the SEC ordered it to shut down gold collectibles operations.
Already 53 soldiers, in January 2019, have sued Menzgold Ghana Limited, for failing to pay back ¢2.5 million in investments.
The SEC boss wants the investing public to understand the basic principle of investment and act cautiously.
“The principle is this: the higher the risk, the higher the return. What this means is that when you, for instance, are investing in a vehicle or investment that carries high returns, then it means that there is a high-risk…that’s different from when you take your money to deposit-taking institution like a bank,” he advised.
Daniel Ogbarmey Tetteh wants investors to know that once their money is working for them, it will entail some risk. “So if the risk is high, then you could lose all or part of your money. So I think that understanding must also be there.”