The Case for Exclusive Winding Up Provisions for Security and Exchange Commission-Registered Entities in Ghana

The insolvency of financial institutions poses significant threats to financial market integrity, investor confidence, and economic stability. In Ghana, banks and specialized deposit-taking institutions (SDTIs) benefit from an exclusive and well-defined liquidation regime under the Banks and Specialized Deposit-Taking Institutions Act, 2016 (Act 930). However, Securities and Exchange Commission (SEC) registered entities such as investment advisory firms, broker-dealers, and asset managers remain subject to the generic framework of the Corporate Insolvency and Restructuring Act, 2020 (Act 1015). This paper argues for the establishment of exclusive winding up provisions under the Securities Industry Act, 2016 (Act 929) for SEC-regulated entities, drawing on regulatory theory, institutional economics, and public interest justifications. It also analyzes international best practices and Ghanaian case studies to support its reform proposals.