Customers of defunct fund managers demand Ghanaian government to start payment of locked up cash before March 24

The members of the Coalition of Aggrieved Customers of the defunct 53 Fund Management Companies have called on the Ghanaian government to begin the payment of their locked-up cash before March 24, 2020.

Director General of the Securities and Exchange Commission, Daniel Ogbarmey Tetteh

The group at a media briefing said the government seems to be ignoring customers of collapsed fund management companies in the payment of depositors monies after the financial sector clean-up.

The Public Relations Officer of the Coalition of the Aggrieved Customers of the 53 fund management companies, Charles Nyame, said they will demonstrate if the government fails to heed their call to pay them their locked up investments.

In 2019, the Securities and Exchange Commission (SEC) revoked the licenses of 53 fund management companies for several regulatory irregularities.

The companies at the time had more than eight billion cedis in assets under management. The collapse of the fund management companies came at a time when a number of the firms were unable to meet investors’ demands for the funds.

An analysis of the country’s financial sector indicated that some of the collapsed fund management companies had their funds locked up in savings and loans companies and other financial institutions that were shut down around the same time by the central bank.

A Governing Council Member of the Ghana Securities Industry Association, Kisseih Antonio, said restoring full confidence in the financial sector demands that investors in the fund management space are given access to their funds in cash rather than in bond payments as has been planned by the receiver.

Ghana Securities Industry Association is the umbrella body of organisations licensed by the Securities and Exchange Commission.

“We want to plead with the government to treat SEC-regulated institutions like the banks. We see that with the banks, we had depositors being paid in full, but with fund managers, we see that there is a cap, and investors are being paid with paper in any amount in excess of GHS170,000. If the government is to treat us like the banks that will go a long way in restoring confidence in the financial sector,” he stated.

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