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Rev. Daniel Ogbarmey Tetteh – Managing Director, SEC
Clients of collapsed fund management companies will begin receiving their locked funds before the end of the year, the Securities and Exchange Commission (SEC) said.
This follows a relief granted to the Official Liquidator, the Registrar General, to liquidate 22 fund management companies (FMCs) whose licenses the SEC revoked in November last year.
The 22 are part of the 50 FMCs whose licenses were revoked “for not being able to return customer funds, for a total of GH ¢ 8 billion, and significant breaches of applicable regulations that created risks to financial stability,” according to the SEC.
A statement issued by the SEC, the securities market regulator, said that as of last Wednesday, August 26, 98,820 claims had been received, valued at GH ¢ 10.83 billion, against 47 of the companies, and the remaining three had no claims against him.
The claims include GH ¢ 4.65 billion filed against Blackshield Capital (formerly Gold Coast Fund Management Limited) by 82,204 clients, representing 42.93 percent of the total value of claims and 83.18 percent of clients.
The claims filed against Firstbanc Financial Services Limited were 423, valued at ¢ 800 million GH. While customers represent 0.428 percent of all people who file claims, the value of their claims represents 7.38 percent, making it the second largest FMC against which claims have been filed.
However, the SEC explained, the validation of claims at Firstbanc Financial Services had not yet begun due to its initial lack of cooperation with the commission, in addition to the filing of an injunction request pending appeal in Superior Court.
The SEC said it did not have access to the records of five companies, against which 489 clients had filed GH ¢ 87 million in claims.
They are Kripa Capital, EM Capital, Omega Capital, Nickel Keynesbury and Heritage Securities (Future PIP Management Ltd).
“We are in the process of resolving the issues to have full access to the records of the remaining five firms,” he said.
Validated claims
The SEC said it had validated the claims against 40 FMCs whose records it had full access to, adding that the commission only had partial access to one company and no access to the remaining six companies.
“The validation of the claims submitted by the clients of the 40 companies to whose records we have full access was completed,” he said.
Initially, it said that it had partial access to Blackshield Capital’s records, claiming that the company only provided Excel data, which accounts for about three percent of claims submitted by its clients.
“Blackshield Capital did not initially help locate the server for validation of the remaining 97 percent of claims until law enforcement intervention; validation is ongoing, ”he said.
Background
The SEC, acting in accordance with Section 122 (2) (b) of the Securities Industry Act (SIA), 2016 (Act 929), revoked the licenses of 53 FMC on November 8 of last year, as part of a sector general financial. clean.
Eight of the firms appealed against the revocation decision to the Administrative Hearings Committee (AHC), but only three were successful.
Following the revocation of the licenses, the SEC took certain steps to protect investors.
They included notifying the Registrar of Companies / Registrar General to petition the court for orders to begin the official liquidation of the 53 CSPs in accordance with relevant law, as well as appointing an agent to take copies of the records and close the premises to secure the assets of the affected companies, in line with the relevant provisions of the SIA.
He also ordered the agent to receive complaints from the clients of the affected companies, acknowledge receipt of them and also validate the claims.
Rescue
The regulator said it also engaged the government, through the Finance Ministry, in a rescue package for affected clients of the FMCs.
The engagement with the government, the SEC said, was in the context that the liquidation process – securing court orders and realizing assets – tended to be long and drawn out, while early relief for affected investors was also important.
“It was agreed that the implementation of the rescue package promised by the government would continue after the claims were validated and the settlement orders secured,” he said.
The first batch
The 22 FMCs in official liquidation include Alpha Capital Securities Limited, Alltime Capital Limited, Ax Capital Limited, Brooks Asset Management Limited, CDH Asset Management Limited (Intermarket) and Fromfrom Capital Limited.
Others are Galaxy Capital Limited, Lifeline Asset Management Limited (Kamaag), Mak Asset Management Limited, Man Capital Limited, Mec-Ellis Investment (Ghana) Limited, Mutual Integrity Limited, Nesst Capital Limited, and Nickel Keynesbury Limited.
The remainder are Nordea Capital Limited, QFS Securities Limited, Sirius Capital Limited, Standard Securities Limited, Supreme Trust Capital Limited, Tikowrie Capital Limited, Ultimate Trust Limited and Weston Capital Management Limited.
Petitions are pending in court for the official liquidation of the remaining FMCs whose licenses were revoked, the SEC said.
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