Kofi El-Awuku, the managing Director of GCB Capital has revealed that some three thousand investors of defunct fund management companies (FMCs) have accepted the assignment and subscription agreement advanced by the Registrar General a week ago.
Rationalizing the purport of this phenomenon, he noted that there was the creation of a GCB account for all of these clients to expedite payment of funds into their accounts.
He further indicated that the fund “is structured into two tiers”, with the tier one operating “like a money market account”.
“To break it down, it’s an investment asset that you can easily get your cash out as and when you need it, maybe within 48 hours. And then, there is a tier two component which is a longer term investment structure with withdrawal restrictions over a period such that you can’t get your money out of it as quickly as you would in tier one”.
As such, “as at close of business last week, we had just about 3,000 people [investors] that had accepted the assignment and subscription agreement. And out of this, about a thousand had completed KYC [Known Your Customer], it’s ongoing so as we speak, people are still submitting their documents and it’s all online so it’s happening round the clock 24/7.”
“Out of the 1,000, about 500 have indicated that they want to make withdrawals…you don’t necessarily even need to take all of it out. What you will need urgently to take out will be paid out of your tier one into your cash account, the rest still remains in a managed fund for you just as it should have been”.
The official liquidator for defunct banks and financial management companies, Jemima Oware on October 11, 2020, announced that payment from twenty FMCs will be credited to investors of these institutions.
Contained in a statement and issued by the official liquidator who doubles as the Registrar General, it noted that the bailout program is being implemented via a special purpose entity, the Amalgamated Mutual Fund PLC, which is being managed by GCB Capital Limited with funding from the government.
The first batch of investors is made of 170 investors out of the 2,850 investors who had submitted their Redemption requests.
“The payment follows the successful validation of claims and the completion of creditor meetings with the Registrar-General – with investors of the first 20 Fund Management Companies. The bailout program is being implemented via a special purpose entity, the Amalgamated Mutual Fund Plc (The AM Fund) established and managed by GCB Capital Limited”.
She also stated that the outstanding investors are yet to get their monies but have gone through the validation process and received a claim ID.
Consequently, they are required to open an account on the Registrar General’s Department’s website.
She further stated that, “the Liquidation process for the other Fund Management Companies whose licences were revoked would be continued by the Official Liquidator as long as the Court grants the Winding up Orders and the claims of the Creditors are validated.”
“The Official Liquidator advises all investors who have gone through the validation and have received their unique Claim I.D.’s to now go to bailout now go to bailoutapp.rgd.gov.gh to go through the account set up process since the application on their website www.rgd.gov.gh is also down as a result of a temporary technical challenge at National Information Technology Authority (NITA).”
