Securities and Exchange Commission to decide on payment schedule for Gold Coast, other fund management firms by end of June

The Securities and Exchange Commission (SEC) has said it will be able to decide on the payment schedule for customers of defunct Fund management firms by the end of June 2020.

According to the Commission, it is in the process of finalising the validation process of affected investors. This would influence how the payment would be carried out. 

Director-General of SEC noted that "So what we have done, firstly, is to get the liquidation process to start and that means that the official liquidator that the Registrar General is in court.

"We can't tell when that process will terminate because it's an issue of the court process so that is in the works," the Director-General explained to JoyNews June 9, 2020.

He however expressed confidence that: "by the end of this month, the SEC will be in the position to make a definite announcement so by the end of this month, I believe that everybody should be clear as to what to expect and when to expect it." 

The Securities and Exchange Commission in 2019 revoked the licenses of 53 Fund Management Companies. In a statement, SEC said that the revocation comes after the companies failed to "return client funds which remain locked up and in a number of cases, have even folded up their operations."

"Essentially, they have failed to perform their functions efficiently, honestly and fairly and in some cases are in continuing breach of the requirements under relevant securities laws, rules or conditions, despite opportunities provided to them by the SEC within a reasonable period of time to resolve all regulatory breaches. The SEC has concluded after extensive engagement with these institutions that their continuous existence in the light of their conduct poses severe risks to the stability of the capital market and to the interests of investors," the statement further read.

Securing bailout package

The Exchange and Exchange Commission is also finalising discussions with the finance ministry that would result in a bailout package for customers of defunct fund management companies.

The move has become necessary after the amount now required is more than the initial budget set aside by the finance ministry.

Rev Obgame Tetteh noted that the budget is now more than the GHS1.5 billion initially budgeted by the Finance Ministry. This was after it validated majority of the claims submitted by investors of these defunct institutions.