SEC shuts down Nyak-City Hostels over unlicensed investment scheme
The Securities and Exchange Commission (SEC) has shut down Nyak-City Hostels Limited for offering investment products to the public without the required licence. The company, which was incorporated in 2025 by the Registrar of Companies, is an unlicensed asset-backed investment company. Nyak-City Hostels Limited operates an investment product known as “Treasury Hostel Investment,” which it […]
The Securities and Exchange Commission (SEC) has shut down Nyak-City Hostels Limited for operating an unlicensed asset-backed investment scheme. The company, incorporated in 2025, offers an investment product called "Treasury Hostel Investment" that promises guaranteed lifetime returns from hostels over 60 years. Nyak-City Hostels Limited Deputy Director General Mensah Thompson stated that the SEC is dedicated to cleaning up the investment sector and restoring investor confidence in Ghana's financial industry.
He emphasized that the Commission will not wait for investors to lose money before taking action, as they move swiftly to shut down facilities and take legal action when necessary. The SEC expressed concern over businesses exploiting real estate to offer investment services without proper licensing, which could undermine investor confidence in the financial market.
Thompson urged for licensing, vetting, and regulatory oversight of investment products to ensure investor protection. The SEC invited Nyak-City Hostels Limited to discuss the matter and warned that further enforcement actions, including arrests and prosecution, might follow if violations persist. The Commission remains committed to safeguarding investor confidence and protecting Ghana's financial sector.
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