The Securities and Exchange Commission (SEC) has said it will reject any audit report from SEC-licensed institutions if they do not follow the requirements of Act 929.

SEC said in a statement that it “shall not accept any 2021 audited financial statements due to be published in 2022 that does not meet the requirements prescribed under Act 929”.

It said “issuers of public securities and SEC-licensed firms are encouraged to apprise themselves on the Securities Industry Act, 2016 (Act 929), especially Section 197 and the Guidelines on Auditors of Public Companies and SEC Licencees (SEC/GUI/002/01/2020) and fully comply with the provisions therein”.

Read the full SEC statement below:

PUBLIC NOTICE AUDIT OF ANNUAL FINANCIAL STATEMENTS OF ISSUERS OF PUBLIC SECURITIES AND SEC LICENSED FIRMS

The Securities & Exchange Commission (SEC) is mandated by the Securities Industry Act, 2016 (Act 929) as amended to promote the orderly growth and development of Ghana’s capital market, and to ensure an efficient, fair and transparent securities market in which investors and the integrity of the market are protected.

The SEC wishes to inform issuers of public securities and SEC-licensed firms on the regulatory obligation required under Section 197 (3) of Securities Industry Act, 2016 (Act 929) to obtain written approval of the SEC before the appointment of auditors to audit their financial statements.

The SEC hereby notifies issuers of public securities and SEC-licensed firms that auditors eligible for appointment as auditors of their companies must be registered by the Commission in accordance with Guidelines on Auditors of Public Companies and SEC Licencees (SEC/GUI/002/01/2020) issued in 2020.

The SEC shall not accept any 2021 audited financial statements due to be published in 2022 that does not meet the requirements prescribed under Act 929 and this public notice.

Issuers of public securities and SEC licensed firms are encouraged to apprise themselves on the Securities Industry Act, 2016 (Act 929), especially Section 197 and the Guidelines on Auditors of Public Companies and SEC Licencees (SEC/GUI/002/01/2020) and fully comply with the provisions therein.

Copies of Act 929 and the Guidelines are available on the SEC website: www.sec.gov.gh

This public notice is part of the reforms the SEC is undertaking to strengthen the securities market generally and specifically to safeguard the credibility of annual financial reports published by issuers of public securities and SEC licensed firms as contents of such reports form the basis on which investment decisions are made.

This public notice is issued pursuant to section 3 and 208(c) of the Securities Industry Act, 2016 (Act 929) as amended.

ISSUED BY THE ORDER OF

THE SECURITIES AND EXCHANGE COMMISSION

DATED 16TH AUGUST 2021