In the 2018 Annual Report of the Securities and Exchange Commission, Ghana, it is stated that “Cryptocurrencies, forex trading, gold collectibles, and other “naked” and “covered” investment schemes...

In the 2018 Annual Report of the Securities and Exchange Commission, Ghana, it is stated that “Cryptocurrencies, forex trading, gold collectibles, and other “naked” and “covered” investment schemes were used as underlying instruments to defraud investors. The surveillance system of SEC was able to identify and flag several of such fraudulent investment schemes and quickly alerted the public about them”.

Required:

1. What gives the rise of unlicensed financial instruments in the financial system of Ghana?


2. Does the Ghanaian securities’ market have enough regulatory framework to curb the proliferation of Ponzi/Pyramid Schemes in Ghana? Why and why not?