The CEO of Dusk Capital, Bernard Osei Tutu, has described as apt plans by the Securities and Exchange Commission (SEC) to increase the minimum capital requirement of investment banks from ¢100.000.00 to ¢5million.
SEC, Starr Business has gathered, notified all investment banking firms in the country of its intention.
SEC is expected to make an announcement soon and will give timelines for the firms to meet the capital requirement or lose their license.
The proposed increment will be the biggest percentage increment the investment industry has witnessed in more than two decades.
Speaking to Starr Business’ Osei Owusu Amankwaah, Osei-Tutu observed that the move was to ensure that “we [investment bankers] have the right resources because banking or the financial market is not a cheap market.”
“You need to have that financial muscle to be able to do what you are doing well. Hence, the capital requirement is very critical. For any banking institution you need to be very solvent and you need to be very liquid.
“If you don’t have that financial muscle…it is a simple matter, you don’t deserve to be in that industry. It is as simple as that,” he added.
Describing the move as a “good call” the Dusk Capital CEO opined that the increment from ¢100.000.00 to ¢5million was “just to say that if you are not ready and you don’t have the financial muscle to operate in this industry, then you don’t need to be there.”
“…I support that [increment] and we at Dusk Capital are ready to commit all the resources that we have to make sure that on a capital front we are duly capitalised and we are able to meet all insolvency issues that come up across,” stressed Osei-Tutu