Ghana Stock Market Boom Sparks Crackdown on Unlicensed Online Investment Advisors

Ghana’s thriving stock market is drawing increasing attention, but it’s also triggering regulatory warnings. The Securities and Exchange Commission (SEC) has raised concerns about a growing number of unlicensed individuals offering investment advice on social media, amid a surge in activity on the Ghana Stock Exchange (GSE).

The market momentum, according to SEC Deputy Director-General of Operations, Mr Mensah Thompson, is partly driven by excess liquidity in Ghana’s financial system. Banks, trustees, and asset managers are channeling more funds into equities as they seek better returns, contributing to the GSE’s recent gains. “The Ghana Stock Exchange is booming and it’s booming for a number of reasons. The performance of the Ghanaian economy has created a liquidity dilemma,” Mr Thompson noted in a public statement.

Recent market data highlights this trend, with the GSE’s market capitalisation rising from GH¢241.72 billion to GH¢243.85 billion in just one day, reflecting sustained buying activity. While the stock market boom offers new opportunities for investors, the SEC warns that it also comes with heightened risks, especially for retail investors relying on unverified online advice.

The regulator has specifically cautioned against social media investment commentary from unlicensed individuals. Mr Thompson emphasized that offering investment guidance without the proper license violates the Securities Industry Act, 2016 (Act 929), and could expose investors to unnecessary losses. “Investment Advisory is a licensed activity under the Securities Industries Act. It is an offense to offer advice or run commentary that may sway investor behavior without the requisite license,” he said.

To tackle the issue, the SEC is collaborating with the Cyber Security Authority to identify and act against unauthorized online advisors across platforms including TikTok, Facebook, X, and Instagram. Investors are urged to rely only on licensed professionals as participation in Ghana’s equity market rises, creating both opportunities and risks for those seeking to benefit from the stock market boom.

source: graphic