SEC Warns Public Against Rising TV-Adverts of Unlicensed ‘Money Doubling’ Schemes
The Securities and Exchange Commission (SEC) has issued a strong caution to the general public over the increasing promotion of suspected fraudulent investment schemes—popularly known as “money doubling” schemes—on some television stations nationwide.
In a public notice, the Commission highlighted that the schemes typically promise unusually high returns with little or no associated risk, a hallmark of fraudulent operations designed to entice unsuspecting individuals into parting with their funds. It stressed that none of the schemes currently being promoted have been approved, authorised, or licensed by the SEC.
The regulator urged the public to exercise heightened vigilance and refrain from investing in products or services offered by unlicensed entities.
The SEC also warned that individuals and groups involved in advertising or promoting such schemes are in breach of Section 144(1) of the Securities Industry Act, 2016 (Act 929) as amended, as well as Section 294(1)(b) of the Companies Act, 2019 (Act 992). These provisions prohibit public invitations or advertisements regarding securities-related products without prior licensing or clearance from the Commission.
To safeguard their investments, the SEC encouraged the public to verify the licensing status of any investment firm or promoter using its toll-free line 0800 100 065, main office numbers 0302 768 970–2, or via email at info@sec.gov.gh.
While disclosing that several entities have already been identified for engaging in these deceptive promotions, the Commission noted that details would be communicated in due course.
The SEC reaffirmed its commitment to protecting investors and ensuring a fair, transparent, and efficient securities market.
