The Securities and Exchange Commission (SEC) has issued new operating guidelines and a corporate governance code that will regulate the capital market and enhance confidence in the sector.

The new directive is in accordance with Section 209 of the Securities Industry Act 2016, (Act 929).

The guidelines include licensing requirements for market operators, regulatory sandbox licensing requirements and conduct of business guidelines.

According to a statement by the SEC, the move is in line with its mandate of regulating and promoting the growth and development of an efficient, fair and transparent securities market in which investors and the integrity of the market are protected.

Per the new guideline, a primary dealer will require a minimum capital of GHS400 million before it can operate, whilst fund managers will need a minimum capital of GHS2 million to operate. A custodian will have to run a business with a minimum capital of GHS50 million.

Others are clearing housing (GHS50 million), Broker-Dealer (GHS1.5 million), Registrar (GHS1 million) and Securities Depository (GHS50 million).

The new minimum capital requirements for market operators are expected to be in full force by end of next year.

Existing market operators are also expected to be fully compliant by the end of 2021.

New entrants would be required to meet the new requirements immediately.

Find below the licensing requirements


Regulated activity                                                         Minimum capital (GHC)

Broker-Dealer                                                                         1,500,000

Clearing House                                                                       50,000,000

Credit Rating Agency                                                             1,000,000

Custodian                                                                                50,000,000

Fund Manager                                                                        2,000,000

Investment Adviser (Corporate)                                            1,000,000

Investment adviser (Individual)                                            200,000

Issuing House                                                                           1,000,000

Margin Trader                                                                          2,000,000

Market Maker                                                                           3,000,000

 Nominee                                                                                   1,000,000

Primary Dealer                                                                         400,000,000

Registrar                                                                                    1,000,000

Securities Depository                                                              50,000,000

Securities Exchange                                                                10,000,000

 Trustee                                                                                       50,000,000

Underwriter                                                                              2,500,000