What difference will your Financial Services Authority make? Mahama questioned
Ghanaian economist Mr. Amoah-Darkwah has questioned the rationale behind the promise by former President John Dramani Mahama to establish Financial Services Authority and what powers it may have in the discharge of its duties considering the already existing and current arrangements ion the regulation of the financial sector.
He explained that at present the country the banking sector regulated by the Bank of Ghana, Fund management regulated by the Security and Exchanges Commission, the Pension Sector regulated by the Pensions Authority and the Insurance sector regulated by the National Insurance Commission.
He said these bodies are regulatory authorities are regulatory bodies in the financial sub-sectors of the various financial industries.
Mr. Amoah-Darkwah speaking on Nyankonton Mu Nsem on Rainbow 87.5Fm noted that he is thinking of the powers the new authority will have over the already existing ones because the laws which these regulatory bodies work with are embedded in these institutions.
He also made reference to the establishment of the Financial Stability Council to offer independent advice on fiscal responsibility and ensure the stability of the entire financial system (across all the sub-sectors, from banking through pensions & fund/asset management to insurance etc) respectively.
He said with this body and the one to be established, he is demanding answers to whether they would be the duplication of duties by these bodies.
At the outdooring ceremony of his running mate Prof. Jane Naana Opoku-Agyemang, former President John Dramani Mahama promised Mr Mahama to establish a Financial Services Authority to be responsible for ensuring that consumer financial markets work for consumers, providers and the economy as a whole.
He explained the function of the proposed Financial Services Authority: “The Authority will oversee all financial products and services that are offered to consumers, and will effectively and efficiently prevent and stop the challenges that have confronted customers of Menzgold, DKM among others.”
But Amoah-Darkwah is asking the relationship that will exist between this authority when established and the ones already in existence.
He added, although the NDC has not provided further details, my initial comment will be what difference will this make in the financial sector.