SEC revokes Zenith Bank Ghana’s trustee license
Zenith Bank Ghana Limited has had its licence as a trustee revoked by the country’s Securities and Exchange Commission (SEC), following the bank’s voluntary request to cease operations.
In a public notice issued on Wednesday, the SEC said it had “approved the voluntary cessation of business” of the bank, adding that Zenith is “no longer mandated to carry out any Trustee activities within the securities industry”.
The SEC also sought to reassure investors, market operators and the public, saying it is “committed to ensuring rigorous enforcement of all the rules for operators in the capital market in order to promote the growth and development of an efficient, fair and transparent securities market in which investors and the integrity of the market are protected”.
Zenith Bank Ghana is a subsidiary of Zenith Bank Plc, one of Nigeria’s largest banks by assets and capital.
The bank has been present in Ghana since 2007, providing a range of banking and financial services to individuals, small and medium-sized enterprises, and corporate customers.
It is not clear what led to Zenith’s decision to cease operations as a trustee in Ghana, or what impact the move will have on the bank’s ongoing operations. The bank and the SEC both declined to comment on the matter.
This move will be a blow to Zenith Bank Ghana’s reputation and will likely lead to some uncertainty among its investors, clients, and other stakeholders.
However, it is important to note that the SEC’s action is taken in the interest of protecting the integrity of the market and ensuring the growth and development of an efficient, fair and transparent securities market.
PUBLIC NOTICE ON VOLUNTARY CESSATION OF TRUSTEE SERVICES BY ZENITH BANK GHANA LIMITED
The Securities and Exchange Commission (hereinafter referred to as “SEC”) is the statutory body mandated by the Securities Industry Act 2016 (Act 929) as amended by the Securities Industry (Amendment) Act 2021, Act 1062 to promote the orderly growth and development of an efficient, fair and transparent securities market in which investors and the integrity of the market are protected.
The SEC issues this notice to the general and investing public that Zenith Bank Ghana Limited, a licensed Trustee that engaged in Trustee activities in the securities industry and capital market, has voluntarily requested to cease operations.
The SEC has, after a thorough assessment of the circumstances, approved the voluntary cessation of business of Zenith Bank Ghana Limited as a licensed Trustee. Zenith Bank Ghana Limited. is no longer mandated to carry out any Trustee activities within the securities industry.
All investors, market operators and the general and investing public are hereby assured that the SEC is committed to ensuring rigorous enforcement of all the rules for operators in the capital market in order to promote the growth and development of an efficient, fair and transparent securities market in which investors and the integrity of the market are protected.
This Notice is issued pursuant to Sections 3(b) (f) (m) and 208 (c) of the Securities Industry Act, 2016 (Act 929).
ISSUED BY ORDER OF
THE SECURITIES & EXCHANGE COMMISSION (SEC)
DATED: 18/01/2023
