James Klutse Avedzi warns public against unlicensed investment schemes

The Director-General of the Securities and Exchange Commission (SEC) Ghana, James Klutse Avedzi, has issued a stern caution to Ghanaians regarding the proliferation of unlicensed investment schemes promising unrealistically high returns. Speaking during the "Time With the SEC" investor education programme held in Sunyani, Avedzi highlighted the critical need for financial literacy to protect personal savings from fraudulent actors. The warning comes as the Commission observes a surge in digital marketing tactics used by scammers to lure unsuspecting investors into unsustainable financial arrangements.

During the event, the Director-General urged the public to perform due diligence by verifying the legitimacy of any firm before committing capital. He noted that fraudulent schemes often rely on social media platforms to reach a wider audience and frequently use high-pressure sales tactics to create a false sense of urgency. Avedzi emphasized that investors should remain skeptical of any offer that promises returns significantly above prevailing market rates, as these are often indicators of potential scams. The SEC’s educational initiative is designed to empower citizens with the knowledge to distinguish between regulated investment vehicles and illegal operations.

Supporting the SEC’s mission, the Bono Regional Minister underscored the necessity of informed decision-making within the current financial landscape. The Minister called for sustained public awareness campaigns to ensure that individuals, particularly in regions outside the capital, are equipped to safeguard their hard-earned savings against sophisticated financial crimes. The SEC has reiterated its commitment to monitoring the capital market and taking action against entities operating without the requisite licensing, while encouraging the public to report suspicious financial activities to the appropriate authorities.