Zenith Bank Ghana Limited, a licensed Trustee that engages in Trustee activities in the securities industry and capital market in Ghana, has voluntarily requested to cease its unit trust services in the country.
This was contained in a brief statement from the bank.
“Zenith Bank Ghana wishes to state that the voluntary Cessation of Trustee Services applies to Unit Trust Schemes only. All other businesses in the Capital Market are operational”.
The company made the clarification on the back of a statement issued by the Securities and Exchange Commission (SEC) on Wednesday, January 18, 2023, which announced that the bank had voluntarily requested to stop providing trusteeship services in Ghana.
The reasons why Zenith Bank has decided to opt out of such a scheme are readily not known.
“The SEC issues this notice to the general and investing public that Zenith Bank Ghana Limited, a licensed Trustee that engaged in Trustee activities in the securities industry and capital market, has voluntarily requested to cease operations.”
“The SEC has, after a thorough assessment of the circumstances, approved the voluntary cessation of business of Zenith Bank Ghana Limited as a licensed Trustee. Zenith Bank Ghana Limited is no longer mandated to carry out any Trustee activities within the securities industry,” the SEC said in a rejoinder.
Meanwhile, Zenith Bank in a rejoinder following SEC’s announcement noted that it took the decision and communicated same in February 2021.
“SEC requested the bank to publish a notice in two newspapers, (Daily Graphic and B&FT) on September 12, 2022. The bank subsequently informed SEC about the publication.”
Below is Zenith Bank’s rejoinder to the SEC statement:
ANNOUNCEMENT – RE: SEC NOTICE
Following the SEC publication and the feedback from mainstream and social media, kindly note the following to enable you understand fully what’s going on:
1. The bank had a Trustee Licence for Unit Trust Schemes.
2. In February 2021, the bank took a decision to terminate that service and wrote its intention to SEC.
3. SEC requested the bank to publish a notice in two newspapers.
4. The bank made the publications in two newspapers (Daily Graphic and B&FT) on September 12, 2022
5. The bank subsequently informed SEC about the publication.
6. This decision is what SEC has communicated, which has been reported in the media in the form you are reading today.
7. The newspaper publications are attached.
The bank is engaging with relevant stakeholders for the necessary attention.
Thank you.
Below is the full statement from the SEC:
About Unit Trust Schemes
A unit trust is a type of mutual fund where money from many investors (called “unit holders”), is managed by a fund manager to achieve a specific return. This fund manager then creates a portfolio of investments and assets.
With a unit trust, the fund manager invests in bonds or shares of businesses on the stock market. The fund is then split into units, which is what you buy when you invest in a unit fund.
Unit trusts are one of the most popular forms of investment funds. They are generally used by investors who want to buy shares and other assets across a mixed portfolio but have limited time or expertise to manage such investments.