THE REPUBLIC v. HIGH COURT, ACCRA; EXPARTE: SECURITY AND EXCHANGE COMMISSION v. FIRSTBANC FINANCIAL SERVICE

TORKORNOO (MRS), JSC:-

Background of the Application for Judicial Review in the High Court

Section 1(1) of the Securities Industry Act 2016 Act 929 provides for the

establishment of the Securities and Exchange Commission (SEC). Section 2 provides for

its object as follows:

2. The object of the Commission is to regulate and promote the growth and

development of an efficient, fair, and transparent securities market in which

investors and the integrity of the market are protected.

In the course of its regulatory functions, the SEC revoked the licence of FirstBanc Financial

Services (FirstBanc) by letter dated 8th November 2019 for reasons stated in the letter.

On 11th November 2019, FirstBanc filed an application for Judicial Review in the High

Court for the following reliefs:

A. A declaration that the revocation of Applicant’s licence by Respondent is

null, void and of no effect for want of compliance with due process and

breach of Applicant’s right to administrative justice.

B. An order of certiorari for the purpose of bringing up for purposes of

quashing and accordingly quashing Respondent’s decision of the 8th

November 2019 revoking Applicant’s fund management licence.

C. An order of injunction directed at Respondent and all its officers,

consultants, advisers, workmen, assigns or privies restraining them

from interfering with Applicant’s business.

The SEC filed an application to set aside the Judicial Review application on 9th December

2019 on the basis that ‘the application is premature since the Applicant failed to exhaust

the statutory provisions of the Securities Industries Act, 2016 (Act 929) prior to filing its

application’.

SEC also contended that Firstbanc had written to it for a reversal of the revocation of the

license a day after it filed the application for judicial review. It was their case that that

communication falls within the ambit of section 19 of Act 929, therefore the application

for judicial review ought to be set aside for the procedures stipulated in Act 929 to be

completed. And even if that communication was not a complaint (as argued by Firstbanc),

it still would amount to a dispute of the decision of SEC to revoke their licence. As such

the court still ought to set aside the Application for Judicial Review and allow the parties

to follow the procedures determined in Act 929 for resolution of disputes.

High Court Ruling

On 17th January 2020, the high court ruled dismissing the application (firs