The Securities and Exchange Commission (SEC) has announced that it has fully settled 69,445 investor claims, representing 82% of the total 84,202 claims lodged by investors affected by the collapse of several fund management companies.
The Minister of Finance, Dr Mohammed Amin Adam, while presenting the 2024 Mid-Year Budget Review in Parliament on July 23, announced the approval of an amount of GH¢ 1.5 billion to continue the bailout programme to affected investors of the failed fund management companies that had their licenses revoked in November 2019.
The total amount of GH¢1.5 billion is to 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.
The decision, according to the SEC in its statement, is motivated by humanitarian concerns and also offers additional financial relief to investors affected by the license revocations, including those from Blackshield Capital Management and Kron Capital Limited
It also noted that GCB Capital Ltd. will hold a meeting in the coming days to offer guidance to investors on accessing the released funds and discuss the prospects of managing claims left in the AM Fund.
“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. 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,” the statement read.
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