youcan'tstopusnow wrote:Pkoli, don't forget to get back to us when you find the answers from your broker. Many thanks
Hi Pals,
I sent a mail to African Alliance Ghana yesterday after obtaining the address from website of the link that Mzee young had given us: Please see the response:
Thank you for your interest in doing business with African Alliance Securities Ghana Ltd (AASG), a Licensed Dealing Member of the Ghana Stock Exchange (GSE).
Due to the difference in the Know your client (KYC) requirements of each country, you must have separate accounts in each country office. However for only institutional investors using custodians, we currently provide this service where such clients can open an account and deal with one business while executing trades on various African markets. We are currently streamlining our procedures to allow for trading across countries for individuals.
You will therefore have to open a separate account with us
Automation of the GSE trading and settlement platforms has transformed the processes by which trade is carried out on the GSE. Below are the details about the new procedures involved:
A prospective investor must first open a brokerage account with AASG and a depository account in the GSE Securities Depository (GSD) prior to trading in securities.
Opening a Brokerage Account
· Individuals
The investor completes AASG’s Account Opening Form (AOF) giving some personal details, a color passport picture, a copy of an identification document (voter card, driving licence, passport, national id) , bank details and evidence of the bank details provided (cancelled cheque, bank statement).
Opening a Depository Account
To open the depository account in the GSD, investors must complete a GSD Securities Account Registration Form (GSD 1a for Individuals and GSD 1b for institutional investors).
Purchasing/Selling securities
· Purchase
If not using custodians, the client completes a purchase order either by mail or in person, after which the trade would be executed only against cleared funds (deposits can be made by cheque, bank transfer or direct cash deposit into AASG’s Clients Account and evidence of the deposit submitted).
· Sale
If not using custodians, the client completes a sale order either by mail or in person, after which the trade would be executed against the client’s holdings per their depository account.
Settlement
Settlement is on T+3.
The market does not recognise trade failures although there may be a delayed settlement.
In addition the exchange has established a fidelity fund for compensating investors in cases where brokers are unable to satisfy claims in respect of liability incurred by them in connection with stock broking business.
Fees
· Equities
The Ghana Stock Exchange stipulates the maximum total commission and levies chargeable as 2.5% of the value of the transactions. The total levies and commission are made up as follows:
Regulatory Levies (non-negotiable)Broker CommissionTotal Levies + Commission
GSESECGSDCMarket dev’tMaximumMaximum
0.35%0.15%0.15%0.05%1.8%2.5%
Our quoted broker commission is 1.5%, although we may give discounts depending on the size of the transaction. Therefore as regulatory levies amount to 0.7% of the value of the transaction, the total levies and commissions we charge is 2.2%.
· Bonds
The Ghana Stock Exchange stipulates the maximum total commission and levies chargeable as 0.145% of the value of the transactions. The total levies and commission are made up as follows:
Regulatory Levies (non-negotiable)Broker CommissionTotal Levies + Commission
GSESECGSDCMarket dev’tMaximumMaximum
0.02%0.009%0.009%0.002%0.105%0.145%
Our quoted broker commission is 0.105%, although we may give discounts depending on the size of the transaction. Therefore as regulatory levies amount to 0.04% of the value of the transaction, the total levies and commissions we charge is 0.145%.
Nonresident foreigners may only purchase Government of Ghana Bonds with 3yr or more maturity.
Exchange Controls
There are no exchange controls currently and there is full and free foreign exchange remittability of:
a) The original capital or principal amounts
b) Any capital gains
c) Dividends or interest payments
d) Related earnings and refunds
Kindly find attached our individual Account Opening Form (AoF) and GSD Securities Account Registration Form (GSD 1a). Also attached is a guide to completing the necessary forms to open brokerage and depository accounts with African Alliance Securities Ghana Ltd.
Let me know if you require further information/clarification.
Regards
Salimy Bedwei-Majdoub
On behalf of
African Alliance Securities Ghana
+233 30 2679761-2/2679723 (tel) |+233 30 2679698 (fax) |+233 244640652 (mobile)
bedwei-majdoubs@africanalliance.com |
www.africanalliance.com