SEC says customers of defunct fund managers will receive their funds after verification

The Deputy Director-General of the Securities and Exchange Commission (SEC), Paul Ababio, has said that customers of defunct fund management companies will receive their investment after their claims are successfully validated.

Deputy Director General of Securities and Exchange Commission, Paul Ababio

This assurance is coming after the Coalition of Aggrieved Customers of the defunct 53 Fund Management Companies called on the government to start paying their locked-up funds before March 24, 2020.

Addressing the media in Accra, the Public Relations Officer of the Coalition of the Aggrieved Customers of the 53 fund management companies, Charles Nyame, said they will embark on a demonstration if the government does not pay their locked up investments.

Meanwhile, there is a growing concern that the SEC has been silent over the repayment of customers of the collapsed fund management companies.

But Mr Ababio told Accra-based Citi FM that they are still validating the claims submitted by investors and when completed, payments will commence.

“We received claims; we gave up to January. What we have to go through now is the validation process. Along with that is also ascertaining the value of the claims to ensure that the claims that are reflected in the firms’ books are as we have received as well. And coming out of that, we are also in touch with the government obviously about the allocation of resources to ensure that the right sums are available, obviously to pay.”

“We want to assure the people that the processes are moving forward, obviously because we are in a capital market, we have to go through a liquidation process for these firms, so that process is also moving forward as we speak, and I think that is key for people to bear in mind.”

“There are series of processes we are going through and we will make announcements in the next few weeks on the full update, in terms of payments and timing of such payments when it is ready,” Mr. Ababio stated.

In 2019, the SEC revoked the licenses of 53 fund management companies for several regulatory breaches.

The companies at the time had more than GHC8billion in assets under management.

An analysis of Ghana’s financial sector showed 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 by the central bank.

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