September 18, 2020

Stock Exchange expels Liberty Securities & First Atlantic Brokerage Ltd from membership

The Ghana Stock Exchange has expelled Liberty Securities Limited and First Atlantic Brokerage Limited from the membership of the Exchange.

According to the GSE, its decision to expel the membership of Liberty Securities Limited and First Atlantic Brokerage Limited is in view of their violation of some market rules.

Per the decision, the two entities are barred from executing trades on the stock market, providing advisory services to clients on capital market issues and holding in place or in trust, clients’ accounts or their security holdings.

Both entities were found to be operating without an authorized dealing officer for more than three months, having a low liquid position and inactivity on the market due to the lack of an Authorised Dealing Officer to execute trades.

“The financial status of the company shows a significant deterioration in its operations, resulting in successive negative returns which have eroded shareholders’ funds. Rule 78 of the GSE Dealing Membership Rules requires a member of the Exchange to comply with the prevailing requirements of the Securities and Exchange Commission in respect of capital, liquidity, reports and returns.”

“FABL is in breach of regulation 22 of the SEC Regulations, 2003 (L.I. 1728), which requires a Broker-Dealer to maintain at any given time, minimum liquid fund amounting to at least 20% of the aggregate indebtedness of the Broker-Dealer,” portions of the statement from the GSE said.

In addition, Liberty Securities Limited was found to be operating with low net shareholders’ fund balance.

The Exchange however assures all existing clients that there are procedures for existing clients registered with both Licensed Dealing Members to transfer their security accounts and security holdings to any Licensed Dealing Member of their choice.

Source: Business