Monarch Capital, Legacy Capital and Integrity Fund Management have had their licenses restored by the Securities and Exchange Commission (SEC).
Out of the fifty three (53) companies whose licenses were revoked, three (3) have been restored.
According to the Director-General of the Security and Exchange Commission, Reverend Daniel Ogbarmey Tetteh, 3 of the 8 financial institutions who sought redress through the administrative hearing committee of SEC were successful.
“There is a provision in our Securities Industry ACT 929, 2016 which allows market operators to file appeals through the administrative hearing committee. 8 of the companies whose licenses were revoked applied and in pursuant of natural justice had to be given a hearing. 5 of the companies were not successful, 3 were, so we now have 50 companies.”
He further noted that customers of the three companies are now exempted from the bailout package and can access their funds directly from the various institutions.
“Clients of the 5 who were unsuccessful will still have to go through the bailout packages. Clients of the three that were successful however are out of the bailout structure.”
SEC on November 8, 2019, revoked the licences of 53 Fund Management Companies for several infractions as well as being insolvent.
The revocations were done pursuant to Section 122 (2) (b) of the Securities Industry Act, 2019 (Act 929) which authorizes SEC to revoke the license of a market operator under certain circumstances.
The licenses of these institutions had to be revoked because they were insolvent even after they were given a reasonable period of time to recapitalize.
Meanwhile, the Registrar General (RG) prepares to hold virtual meetings with creditors of the collapsed institutions of Fund Management Companies (AMCs) who have been cleared by the court for assets liquidation following the revocation of their licenses.
A notice to that effect said “The Securities and Exchange Commission (SEC), acting in accordance with Section 122 (2) (b) of the Securities Industry Act 2016, (Act 929) (SIA) revoked the licences of 53 Asset Management Companies (AMCs) Pursuant to applications by the Registrar of Companies,
“The High Court, Commercial Division presided over by Her Ladyship Justice A. Mensah Homiah (JA) ordered the official winding up of the under listed companies.
“Take notice and notice is hereby given that all the creditors of the under listed companies are being invited to a virtual First Creditors meeting on the scheduled dates and time for each of the meetings, commencing 7th September — 11th September, 2020. The links to the meetings shall be delivered to all creditors via text message before the 4th of September, 2020.”
