69,445 investor claims fully settled … SEC releases additional GH₵1.5 billion for further payout
A total of 69,445 investor claims, representing 82% of affected investors, have been fully settled following the 2019 revocation of fund management licenses, the Securities and Exchange Commission (SEC), has said.
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This development forms part of the GH₵4.46 billion already disbursed under the government’s bailout programme.
To further support the remaining investors, the Commission has announced that the Government, through the Ministry of Finance, has approved the release 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.
In a release issued by the Commission today in Accra, it said the total amount of GHS1.5 billion will 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.
“This GH₵1.5 billion is in addition to the GHS 4.46 billion previously released to affected investors with examined claims. The bailout money released so far has been used to pay a total number of 84,202 investor claims of the failed fund management companies out of which 69,445 (representing approx. 82%) investor claims have been fully settled,” it said
According to the release, the 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.
It said the 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,” it said.
The release added that 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.