Investors of Liquidated Fund Management firms to receive bailout in November – RGD

Mrs Jemima Oware 45 Jemima Oware is the Registrar General

Mon, 8 Nov 2021 Source: www.ghanaweb.com

• The SEC revoked licenses of 47 fund management firms in 2019

• 20% of investment in bonds to accessed in cash, Oware

• GCB Capital to serve notice

Investors of some Liquidated Fund Management Firms are likely to receive a portion of their funds in cash which were placed in the form of bonds, Registrar General, Jemima Oware has said.

According to her, the disbursement of the bonds will take place in November this year.

Speaking in an interview on Joy News last Thursday, the Registrar General said investors will soon be notified by the Ghana Commercial Bank Capital on how to access their funds.

“They are now going to access 20% of their investment in bonds, in cash. Notices will come out from GCB Capital on how they can access it,” she noted.

Jemima Oware further revealed that out of the 47 Liquidated Fund Management firms, 43 have received liquidation orders.

“Initially it was 53 and has been reduced to 47 and of the 47, we’ve currently gotten liquidation orders of 43. By that, we have held a creditor and class meeting for these 43. Once we were able to hold that all those investors who chose the bailout option went for that…funds were made available to pay,” the Registrar General said.

To ensure investors funds are recouped, the Registrar General said the central banks have since made available some funds to settle some 80% of 39 percent micro-credit companies while 20 percent of the remaining companies still have some issues.

“80% of the 39 microcredit have been settled and about 20% you can’t find some of the directors. You can’t get some of the statements, so that’s not so good,” she said.

Meanwhile, the latest move to settle investors comes in the form of the second tranche of payment for customers who are unable to withdraw all their funds from the first tranche payment.

As part of a regulatory crackdown, the Securities and Exchange Commission in November 2019 revoked the licenses of 53 fund management firms for failure on their part to not operate in conformity with the industry’s best practices and standards, among others.

The Securities and Exchange Commission in November 2019 revoked the licenses of 53 fund management firms.

The Commission explained these firms were not operating in conformity with the regulator’s best practices and standards among others.

Source: www.ghanaweb.com