As an investment advisor with experience at Access Bank Ghana, handling diaspora clients under SEC’s investment guidelines, I emphasize KYC and risk profiling per BoG’s Anti-Money Laundering directives. For UK residents like Naa, forex and tax considerations (e.g., UK-Ghana double taxation treaty) are crucial.

(a) Questions to Ask Prior to Developing Investment Strategy (10 marks)

To ensure a tailored, compliant strategy preserving capital for property purchase, I’d ask:

• Risk Tolerance and Time Horizon: What is your risk appetite (low/medium/high)? How soon do you plan to buy the property (e.g., 6 months or 2 years), affecting liquidity needs?
• Financial Situation: What is the total proceeds from the land sale? Do you have other income/sources of funds? Any debts or obligations that could impact this amount?
• Investment Objectives: Besides capital preservation for property, any secondary goals like income generation or growth? Preferences for ethical/ESG investments?
• Tax and Regulatory Details: Your tax residency status (UK/Ghana)? Any restrictions on fund transfers (e.g., via BoG’s forex rules)? Awareness of withholding taxes on investments?
• Experience and Preferences: Prior investment experience? Preferences for asset classes (e.g., fixed income, equities) or aversion to volatility?
• Currency and Inflation Concerns: Since funds are for Ghana property, concerns about cedi depreciation? Views on inflation protection?
• Emergency Needs: Any potential need for quick access to funds (e.g., family emergencies)?
• Legal Aspects: Proof of land sale legitimacy (to comply with AML)? Advisors or family involved in decisions?
• Return Expectations: Realistic return targets given short-term horizon?
• Diversification: Willingness to diversify or stick to conservative options?

These align with SEC’s suitability assessments.

(b) Recommended Investment Type and Why (10 marks)

I recommend short-term fixed-income instruments, specifically Treasury Bills (T-bills) or Fixed Deposits at a reputable Ghanaian bank.

Reasons:

• Capital Preservation: Low risk, government/bank-backed, ensuring principal safety for property purchase, per BoG’s stability post-cleanup.
• Liquidity: Maturities (91-182 days) allow quick access without penalties, matching search timeline.
• Competitive Returns: Yields around 15-20% in 2025 outperform UK savings amid Ghana’s rates, hedging inflation (8-10%).
• Currency Alignment: Denominated in cedi (or USD if diaspora account), mitigating forex risks under BoG’s controls.
• Tax Efficiency: Interest taxable at 15% withholding, but simple; avoids equity volatility.
• Regulatory Compliance: Easy setup via non-resident accounts, compliant with FATCA/CRS for UK residents.
• Simplicity: No management fees like funds; suits conservative profile for retirement.

Alternatives like money market funds could diversify, but T-bills prioritize safety.