SEC releases GH¢1.5 billion to affected fund management investors

The Securities and Exchange Commission (SEC) has approved the release of GH¢1.5 billion to continue the bailout program to affected investors of the failed fund management companies that had their licenses revoked in November 2019.

The Minister of Finance, Dr. Mohammed Amin Adam, earlier announced that the government had approved the release of the money to continue the bailout programme to affected investors of the failed fund management companies that had their licenses revoked in November 2019.

He said the total amount 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 GH¢1.5 billion is in addition to the GH¢4.46 billion previously released to affected investors with examined claims. 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,” SEC said in a release on September 12, 2024.

It also said 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.

SEC noted that this bailout covers investors with examined claims who have accepted the Government’s bailout package.

“Under this current release, investors will receive the higher of GH¢50,000 or 15% of their outstanding examined claims on the defunct firms. This top-up is estimated to result in close to 91% of affected investors being fully settled. This 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,” it concluded.

SSD/ ADG

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