In a significant move to provide financial relief to investors impacted by the 2019 fund management industry collapse, the Securities and Exchange Commission (SEC), in collaboration with the Ministry of Finance, has approved the release of GHS 1.5 billion to affected investors.
The Commission, in a statement, indicated that the GHS 1.5 billion bailout is aimed at providing much-needed support to investors whose funds were trapped in defunct companies such as Blackshield Capital Management Limited (formerly Gold Coast Fund Management Limited) and Kron Capital Limited.
“As announced by the Hon. Minister of Finance in his recent monthly economic update, the Government, through the Ministry of Finance, has approved the release of an amount of GHS 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 Securities And Exchange Commission (SEC)
According to the statement, the release will be rolled out in three phases: GHS 700 million in August 2024, GHS 400 million in October 2024, and GHS 400 million in December 2024.
These funds according to the Commission will supplement the GHS 4.46 billion that has already been distributed to investors with verified claims over the last four years.
“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”.
The Securities And Exchange Commission (SEC)
Details of the Bailout Plan
In explaining the details of the bailout, the SEC disclosed that out of the 84,202 investor claims reviewed thus far, approximately 82%, or 69,445 investors, have had their claims fully settled.
The statement therefore indicated that the latest round of funding is expected to boost that number significantly, with the new release aiming to fully settle an additional 91% of claims by offering a top-up payment to affected investors.
According to the statement, under the terms of the current bailout package, investors will receive either GHS 50,000 or 15% of their remaining outstanding claims, whichever is higher. The package offers a lifeline to those still reeling from the impact of the fund management crisis.
Additionally, the statement indicated that the bailout would be channelled through the Amalgamated Mutual Fund (AM Fund) managed by GCB Capital Ltd.
It stated that SEC-appointed fund managers are expected to hold a meeting soon to provide additional guidance to investors seeking to access these funds.
It also indicated that investors could either withdraw their bailout funds or leave their claims in the AM Fund for professional management by GCB Capital.
Continued Commitment to Investor Protection
Investors who have accepted the government’s bailout package are encouraged to contact the SEC-appointed agent, PricewaterhouseCoopers (PwC) Ghana, or GCB Capital Ltd. for further guidance.
The Security and Exchange Commission also indicated that it has set up a dedicated bailout portal—[www.bailout.orc.gov.gh](http://www.bailout.orc.gov.gh)—where affected investors can find more information and updates on the payout process.
In November 2019, the SEC revoked the licenses of 53 fund management companies following the industry’s collapse, citing issues related to governance failures, insolvency, and regulatory violations.
The revocation resulted in a severe financial crisis, with thousands of investors unable to access their funds.
Following the incident, the government launched a comprehensive bailout program, with the GHS 1.5 billion release marking the latest phase of the initiative.
According to SEC, this move is largely motivated by humanitarian concerns, ensuring that those whose livelihoods were impacted by the financial mismanagement are given a lifeline
The SEC reaffirmed its commitment to ensuring that the payout process runs smoothly and that all affected investors receive the financial relief they deserve.
It noted that while significant progress has been made, with a substantial portion of claims fully settled, this latest release is expected to close the gap further, providing closure to investors who have been awaiting resolution since 2019.
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