{
  "id": 10499265,
  "title": "SEC shuts down Nyak-City Hostels over unlicensed investment scheme",
  "url": "https://urgent.news/2026/09/28/sec-shuts-down-nyak-city-hostels-over-unlicensed-investment-scheme-10499265",
  "topic": "world",
  "section": "World",
  "published": "2026-09-28T17:26:35.000Z",
  "source": {
    "name": "MyJoyOnline Ghana",
    "slug": "myjoyonline-ghana",
    "url": "https://www.myjoyonline.com/sec-shuts-down-nyak-city-hostels-over-unlicensed-investment-scheme/"
  },
  "original_language": "en",
  "account": "The Securities and Exchange Commission (SEC) has terminated the operations of Nyak-City Hostels Limited due to their unlicensed offering of investment products. Nyak-City Hostels Limited, established in 2025, is an unlicensed asset-backed investment company that operates an investment product called \"Treasury Hostel Investment\". This product claims to offer better returns than a treasury bond, promising investors guaranteed lifetime returns from investments in hostels over a period of 60 years.\n\nDuring the shutdown of the facility, Mensah Thompson, Deputy Director General of the SEC, emphasized the Commission's commitment to purifying the investment sector and reestablishing confidence in Ghana's financial industry. Thompson stated that the SEC would no longer wait for investors to lose money before taking action, but would proactively shut down entities suspected of operating without the required license. The Commission had received intelligence on the company's activities and acted swiftly to shut down the facility before potential investor losses could occur.\n\nThompson expressed concern about businesses using real estate to offer investment services without the necessary license. He highlighted that the company's 60-year investment tenure, without the required regulatory approval, could undermine investor confidence in Ghana's financial market. Licensed investment products, Thompson stressed, provide regulatory and resolution mechanisms to protect investors in case of any issues. These mechanisms ensure that investors can invest safely in vetted, scrutinized, and approved products.\n\nThe SEC invited representatives of Nyak-City Hostels Limited to its offices to initiate discussions about the matter. Initially, the Commission opted for a lenient action, only shutting down the facility instead of making arrests. However, Thompson indicated that further enforcement actions, including arrests and prosecutions, could follow if deemed necessary. The SEC remains committed to taking action against unlicensed investment operators to protect investors and maintain confidence in Ghana's financial sector.",
  "summary": "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 […]",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Joy Business",
        "title": "SEC shuts down Nyak-City Hostels over unlicensed investment scheme",
        "url": "https://urgent.news/2026/09/28/sec-shuts-down-nyak-city-hostels-over-unlicensed-investment-scheme",
        "published": "2026-09-28T17:26:35.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}