DDE: Dr Seddoh criticizes financial regulators for failing to protect investors
Dr Dan Seddoh, the Executive Director of Riscovery Insurance Brokerage, has called for financial regulators to step up their efforts to protect customers during the government’s Domestic Debt Exchange Programme.
Speaking at the Graphic Business/Stanbic Bank Breakfast Meeting on Tuesday, Seddoh criticized regulators for failing to adequately safeguard the interests of investors, who provide the funds used for investment.
Seddoh argued that it is essential for regulators to recognize the importance of investors and work more closely with them, rather than focusing solely on protecting the government. He went on to criticize the government’s debt exchange program, which struggled to gain support from bondholders due to a lack of clarity regarding the program’s terms and profitability.
The Finance Minister, Ken Ofori-Atta, launched the domestic debt exchange program in December 2022 as part of efforts to meet the conditionalities of the International Monetary Fund. However, the program faced significant resistance from bondholders, who were reluctant to participate due to a lack of transparency and unclear terms.
The program’s initial deadline for participation by bondholders was set for December 19, 2022. However, due to the failure to reach an agreement, the deadline was extended several times, with the final deadline set for February 10, 2023. During this period, various groups and unions staged protests, including a notable one by pensioners who picketed in front of the Finance Ministry for a week.
These protests were successful in convincing the government to exclude pensioners from the debt exchange, with former Chief Justice Sophia Akuffo also joining the demonstration. However, the lack of clarity surrounding the program’s terms and profitability remained a significant concern for many bondholders.
The government’s failure to secure sufficient participation in the debt exchange program has highlighted the need for greater transparency and clarity in financial regulations. This lack of clarity has left many bondholders uncertain about the risks and benefits of participating in such programs, which in turn can negatively impact investment in the country.
As such, Seddoh’s call for financial regulators to up their game in protecting customers and working more closely with investors is an essential step towards improving financial regulations and fostering greater transparency in financial markets. The success of such efforts will be crucial in attracting more investment to the country, helping to drive economic growth and development.
