September 28, 2020

SEC urges fund managers to invest more in ICT services

The Director General of the Securities and Exchange Commission, SEC, Rev. Daniel Ogbarmey Tetteh, has emphasized the need for fund managers to leverage on technology for business growth.

According to him, the impact of information and communication technology (ICT) in the securities industry has become increasingly critical considering the impact of the novel Coronavirus on the financial sector and transactions in general.

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The SEC Director General, who was the guest speaker at the 2020 GIMPA Law School Webinar Conference, also cautioned financial institutions against cyber fraud as the COVID-19 pandemic has brought with it a significant increase in fraudulent activity.

“In the case of assets under management, there seems to a balance between withdrawals and new investments. What is clear is the need for investment in ICT driven service delivery platforms. As someone has said, the new normal means that work is no longer a place you go but what you do. We expect our licencees to invest more in ICT and also take note of the potential threat of cyber risk. We expect our licencees to rely on ICT to ensure adequate disclosure and engagements with the investing public,” he said.

He also urged businesses within the sector to frequently review their business models to meet the changing trends.

“As a Commission, we recently issued guidelines on holding virtual annual general meetings for the guidance of listed companies and market intermediaries and we expect that the firms would retain the option of using virtual platforms in addition to the traditional in-person meetings beyond the Covid-19 era. We have also given direction to the market to do electronic submissions to the Commission. Without doubt, this period also calls for all to interrogate their business and operating models in order to stay relevant,” he said.

Following the outbreak of the novel Coronavirus, many businesses are making full use of digital technologies to confront a wide range of pandemic-related issues.

Source: Business