Customers of defunct fund managers to receive payments after verification – SEC

Customers of collapsed fund management companies can have a sigh of relief as the Securities and Exchange Commission(SEC) has assured them access to their funds after a successful validation of their claims.

The commission’s reaction follows fresh concerns over its quiet posture after revoking the licenses of some 53 fund management companies last year for various regulatory breaches.

Speaking to Citi news, the deputy director-general of SEC, Paul Ababio stated that a process to validate the claims submitted by investors is ongoing and when completed, payments will commence.

“What we have to go through now is the validation process. Along with that is also ascertaining the value of the claims to ensure that the claims that are reflected in the firms’ books are as we have received as well. And coming out of that, we are also in touch with the government obviously about the allocation of resources to ensure that the right sums are available, obviously to pay.”

“We want to assure the people that the processes are moving forward, obviously because we are in a capital market, we have to go through a liquidation process for these firms, so that process is also moving forward as we speak, and I think that is key for people to bear in mind,” he stated.

He also said that an announcement will be made soon on the full updates and payment terms

“There are series of processes we are going through and we will make announcements in the next few weeks on the full update, in terms of payments and timing of such payments when it is ready.”

Aggrieved customers

Members of the Coalition of Aggrieved Customers of the defunct 53 Fund Management Companies called on the government to commence payment of their locked-up funds before March 24, 2020.

The group believes government has deliberately been silent on the payment of their monies after the financial sector clean-up.

Addressing the media in Accra, Public Relations Officer of the Coalition of the Aggrieved Customers of the 53 fund management companies, Charles Nyame, said the group will embark on a demonstration if the government fails to pay their locked-up investments.