ICAG advocates robust regulatory framework
The Institute of Chartered Accountants, Ghana (ICAG) has called for a robust regulatory and supervision framework in the financial services industry to protect the interest of investors.
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It has, however, indicated that such a framework should not be rigid but stable enough to propel growth, efficiency and innovation in the sector.
The President of ICAG, Professor K.B. Omani-Antwi, made the call during this year’s accountants’ conference organised by the institute in Accra yesterday.
According to him, many people had lost their investments, especially in the microfinance sector, as a result of the lack of such a regulatory framework.
He said others had also lost faith in the traditional banking sector because of the prevailing high interest rates.
“This has created a boom for e-money services. We, therefore, need to improve on the quality of regulations, knowing very well that effective regulation and supervision is positively correlated with strong economic developments,’’ he intimated.
Event
The event, held on the theme: “Emerging developments in the financial services sector in Ghana”, was part of the annual Accountants Week celebrations.
It will be climaxed with the holding of the Annual General Meeting (AGM) of the ICAG in June 2016 to elect leaders to spearhead affairs of the organisation.
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Consumer protection
Prof. Omani-Antwi described consumers as the “critical foundation in the financial system” and said there was the need for players in the industry to make consumer protection a core element in their operations.
“Consumer protection improves the confidence that the public will have in the financial industry. There must, therefore, be legislative, regulatory and administrative reforms to promote transparency, fairness, accountability and access in the market for consumer financial products that will enhance economic development,’’ he stated.
Achievements
He mentioned some of the successes chalked up by the institute as including the securing of a $90,000 grant from the United Kingdom’s Department for International Development (DFID) to support the activities of the Controller and Accountant-General’s Department.
Prof. Omani-Antwi added that a member of the ICAG, Mr Patrick Nomo, who is the Director of Budget at the Ministry of Finance, had been shortlisted for the International Federation of Accountants’ (IFAC) Board and was currently being interviewed for a possible selection.
Competition
In a speech read on his behalf, the Minister of Finance, Mr Seth Terkper, said financial institutions must invest in new technologies in order to stay competitive, adding, “Competition in the sector will continue to intensify”.
“Already, some foreign service providers are selling financial services to Ghanaians via the Internet. Also, customers nowadays are more informed and demand more than ever before as they look out for the best value, increased choice, control and convenience in how they access financial services,” he said.