Securities and Exchange Commission Ghana revokes commercial paper guidelines for fund managers and halts new unsecured debt investments

Securities and Exchange Commission Ghana has issued a directive revoking the CP Guidelines for Fund Managers, 2012 with immediate effect after a review of the regulatory framework for commercial paper and related debt market developments found elevated credit, liquidity and concentration risks. The directive requires fund managers, market operators and other affected stakeholders to stop using the revoked guidelines and to refrain from making new investments in unsecured debt instruments, including commercial paper, while the Commission overhauls the framework for debt securities investments and prepares revised guidance. New commercial paper investments under the revoked guidelines must be suspended, and existing commercial paper holdings must not be rolled over at maturity. Proceeds are to be redeemed and redeployed in line with prevailing regulations. Firms must continue to comply with existing rules on investment allocations, asset diversification and exposure limits. The directive also points market participants intending to invest in commercial paper to the Commercial Paper Issuance and Admission Rules (2024) issued by the Ghana Stock Exchange and approved by the Commission. Breaches may trigger enforcement action under the Securities Industry Act, including administrative sanctions, fines, suspension or revocation of licence. The measure remains in force until the Commission revises, varies, amends or revokes it. Revised commercial paper guidelines are to follow as part of the broader review of the debt securities investment regime.