Renowned economist and investor, Kwame Pianim, is advocating for the mandatory publication of annual reports and liquidity issues of Fund Management Companies (FMCs) in the country.
His assertion is premised on the fact that the publication of annual reports, liquidity problems and other issues affecting FMCs will serve as red flags warning the investing public of the potential risks of investing with a particular FMC.
“Regulators such as the Bank of Ghana (BoG) and the Securities and Exchange Commission (SEC) must help the investing public by making it mandatory that major on-site inspection findings and on-going concerns such as government and liquidity concerns, inability of FMCs to meet statutory payment obligations along with annual reports must be published and made known to the media and public at large. This will help warn the investing public and raise red flags to the potential risks in investing their funds with FMCs,” he stated.
Mr Pianim made the assertions speaking at the second edition of the Investment Dialogue Series themed Investing in Ghana: My Journey and Lessons, held by Fund Management Company, Tesah Capital.
The call for the aforementioned measures follow the collapse of 53 FMCs in the country during the financial sector cleanup by government on the back of poor corporate governance and insolvency-related issues.
Advising the investing public on how to identify and avoid FMCs with dodgy operations, Mr Pianim averred that investors in the country should first look at the competence and moral integrity of the leadership or management of the FMC.
“To avoid dodgy FMCs to whom we entrust our monies to, we must look at their competence and moral integrity of those in charge and also those at the bottom, the workers I mean,” he stated.
Sharing some mistakes made with regards to investing in businesses and with FMCs over the years, Mr Pianim opined that investment is a ‘calculated risk business,’ and that persons shouldn’t invest from their heart, as doing so would almost certainly result in the loss of one’s investment.
Speaking further at the dialogue series, Mr Pianim, also shared some expectations of Tesah Capital, stating that Tesah Capital should become one of the new generation of FMCs that Ghanaians can entrust with their savings and be rest assured that their monies are safe and growing.