The Securities and Exchange Commission (SEC) has announced a timetable for releasing locked up funds of investors of failed fund management companies that had their licenses revoked in November 2019.
A statement from the SEC dated September 12, 2024 made reference to an approval by government, through the Ministry of Finance, to release GH₵ 1.5 billion as part of the bailout programme to the affected investors.
“The total amount of GH₵ 1.5 billion will be released in three tranches commencing with the first tranche of GH₵ 700 million in August 2024, and GH₵400 million each in October 2024 and December 2024. This GHS 1.5 billion is in addition to the GHS 4.46 billion previously released to affected investors with examined claims”, it said
The statement explained that the bailout money released so far has been used to pay a total number of 84,202 investor claims of the failed fund management companies out of which 69,445 (representing approx. 82%) investor claims have been fully settled.
“This decision, driven by humanitarian considerations, will provide further financial relief to those impacted by the revocation, including investors of Blackshield Capital Management Limited (formerly Gold Coast Fund Management Limited) and Kron Capital Limited”, the statement said
The SEC said the bailout covers investors with examined claims who have accepted the government’s bailout package.
“Under this current release, investors will receive the higher of GHS 50,000 or 15% of their outstanding examined claims on the defunct firms”.
According to the statement, the top-up is estimated to result in close to 91% of affected investors being fully settled.
The bailout will be rolled out through the Special Purpose Vehicle, Amalgamated Mutual Fund (AM Fund) managed by GCB Capital Ltd.
“The managers of AM Fund will hold a meeting in the coming days to provide guidance for those who would want to access the released funds as well as the prospects for leaving the claims in the AM Fund to be managed”.
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