The Securities and Exchange Commission’s (SEC) new fee regime is beginning to reshape Ghana’s investment landscape, with rising regulatory costs prompting changes in investor behaviour and forcing some market operators to pass additional expenses on to their clients.
Industry analysts say the impact of the revised levies, which took effect on March 1, 2026, is extending beyond financial institutions and directly influencing how investors build portfolios, execute trades and select investment products.
At the centre of the changes is a significant increase in regulatory charges across several categories of licensed operators.
Annual licence fees for fund managers have increased from GH¢7,500 to GH¢25,000, while broker-dealers, investment advisers and registrars now pay GH¢15,000, up from GH¢5,000 in 2025.
Some categories have experienced increases of up to 300 percent, significantly increasing the fixed cost of operating in the industry.
However, analysts say the most far-reaching change is the introduction of asset-based levies on non-pension funds under management.
Under the revised framework, collective investment schemes, real estate investment trusts and retail wealth-management portfolios are subject to a 0.2 percent levy on net asset value, while institutional and private-fund mandates attract a 0.1 percent charge.
Unlike annual licensing fees, these levies are passed directly to clients.
The new structure is already changing investment behaviour.
Investors in professionally managed funds are seeing the effects through higher management and administrative charges, while brokerage firms have begun adjusting transaction fees to offset higher operating costs.
According to market analysts, the higher cost of investing is encouraging a shift away from short-term trading.
Smaller investors, in particular, are increasingly adopting buy-and-hold strategies as transaction costs consume a larger share of potential returns.
Instead of making frequent trades, many investors are consolidating transactions and holding investments for longer periods.
The trend is also expected to influence portfolio composition.
Analysts warn that investors may reduce the number of securities they hold and concentrate their investments in a smaller number of larger, more liquid assets to minimise costs.
While this strategy could lower expenses, it may also reduce portfolio diversification.
There are also signs that investors are beginning to favour lower-cost investment products.
Fixed-income securities, money-market instruments and professionally managed funds are expected to attract greater interest as investors seek more cost-efficient alternatives to active equity trading.
Despite concerns over rising costs, the SEC maintains that the revised fee structure will strengthen market regulation and improve investor protection.
Deputy Director-General of the SEC, Mensah Thompson, has argued that the new levies should be viewed as an investment in a stronger regulatory framework rather than an additional financial burden.
Analysts agree that effective regulation is essential for market development but caution that excessive cost increases could discourage retail participation and reduce market activity.
The challenge, they say, will be ensuring that the cost of regulation does not outpace the growth of the market itself.
By: Toma Imirhe / businesspostonline
