Ghana’s Securities and Exchange Commission (SEC) has issued a new directive limiting the level of foreign securities exposure permitted for Collective Investment Schemes (CIS), citing the need to protect investors and safeguard financial market stability.
Under the directive, CIS licensed to invest domestically may allocate no more than 20% of their assets to foreign securities. Funds authorised to invest abroad are capped at 70% foreign exposure, with at least 30% of assets required to remain invested locally.
The SEC said the move responds to rising interest in offshore investments and concerns about risks beyond its regulatory oversight, including potential impacts on the cedi and broader macroeconomic stability.
Foreign investments must qualify as “securities” under the Securities Industry Act and be made only in approved markets where regulators are signatories to the IOSCO Multilateral Memorandum of Understanding or have formal cooperation agreements with the SEC.
Fund trustees and directors are required to update scheme documents accordingly, with non-compliant schemes given 90 days to align. The directive takes immediate effect, with enforcement actions предусмотрed for breaches.
