SEC Announces Release of GHS 1.5 Billion Bailout for Affected Investors
The Securities and Exchange Commission (SEC) has announced the release of GHS 1.5 billion to compensate investors affected by the 2019 revocation of fund management licenses.
This additional capital injection will be disbursed in three tranches, with an initial GHS 700 million in August 2024, followed by GHS 400 million each in October and December of the same year, noted SEC in a statement issued on Thursday, September 12.
According to SEC, the latest bailout is part of efforts to provide financial relief to investors in failed fund management firms, including Blackshield Capital Management (formerly Gold Coast Fund Management) and Kron Capital.
It follows an earlier payout of GHS 4.46 billion to affected investors with validated claims. To date, 84,202 investors have received payments, with 82% of claims fully settled.
Under the terms of the new package, SEC asserts that investors will receive the higher of GHS 50,000 or 15% of their outstanding claims. SEC says it expects this top-up to result in close to 91% of all investors being fully compensated stating that the funds will be distributed through the Amalgamated Mutual Fund (AM Fund), managed by GCB Capital Ltd.
SEC further noted that AM Fund managers would soon hold consultations with investors to provide clarity on accessing the new funds, as well as outlining options for those who may wish to keep their claims within the AM Fund for future management.
