Gold trading company, Menzgold Ghana Limited, has been asked to suspend its gold trading operations by the Securities and Exchange Commission (SEC).
According to the SEC, Menzgold has been dealing in the purchase and deposit of gold collectibles from the public without a valid license from the Commission.
The company has however been cleared to continue its “other businesses of assaying, purchasing gold from small-scale miners and export of gold.”
The SEC said in its statement, dated September 7, that it has been investigating Menzgold since 2017 but paid a working visit to the company on August 23, 2018 where they met with the Commercial Manager and adviser to the company’s CEO.
The Commission has since requested for “detailed information” on the activities of the company which the lawyers of Menzgold have agreed to provide within 14 days.
The SEC, however, believes that this notwithstanding, the company’s activities constitute an illegality and are “a threat to unsuspecting and uninformed investors.”
“Accordingly, the SEC hereby directs Menzgold Company Ltd to shut down immediately the business of trading in gold collectibles with guaranteed returns to clients which constitutes, in essence, dealing in securities with neither the necessary license nor disclosures authorised by the SEC. No new contracts should be created and all advertising of the investment business halted with immediate effect.”
More soon…
By: Edwin Kwakofi/citinewsroom.com/Ghana
The post SEC orders Menzgold to suspend ‘illegal’ trading operations appeared first on Citi Newsroom.
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