SEC warns against unlicensed online investment advice as GSE market cap hits GHS243.85 billion

Ghana's Securities and Exchange Commission (SEC) has raised concerns about a rise in unlicensed investment advice on social media. This follows increased activity on the Ghana Stock Exchange (GSE).

Increased funds in banks and asset managers are moving into equities. This is boosting the stock market. The GSE's market capitalization rose to GHS243.85 billion last Thursday. It was GHS241.72 billion the day before. This shows strong buying activity.

Mr. Mensah Thompson, Deputy Director-General of Operations at the SEC, said excess cash in the financial system is fueling market momentum. Banks and investors are looking for better returns.

However, the SEC is worried about the rise of online advisors without licenses. Providing investment advice without a license breaks the Securities Industry Act, 2016 (Act 929).

Mr. Thompson warned that relying on such advice can cause financial losses for investors. The SEC is working with the Cyber Security Authority. They will find and take action against those giving unauthorized investment advice on platforms like TikTok, Facebook, X, and Instagram.

This action aims to protect investors as more people join the stock market. It aims to manage both the opportunities and risks in the market.