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The Securities and Exchange Commission, SEC, has clarified that no clients will be excluded from the government bailout package for people whose funds have been locked in the 53 missing fund management companies since November 2019.
Previous evidence indicated that only clients of 22 defunct companies would benefit in the first phase due to ongoing legal cases with Blackshield Capital Management Limited and the others.
This generated agitation among the clients of the affected companies, in particular the clients of Blackshield, formerly Goldcoast Fund Management.
Some of them protested at the facilities of the Ministry of Finance on September 1, 2020.
But the SEC, in a statement on Wednesday, September 2, 2020, clarified that its previous statement announcing the rescue package had been misinterpreted.
“We want to assure all affected clients that the government rescue package is all-inclusive, provided that the claims have been validated and the settlement orders secured. The SEC reiterates the fact that there is no plan to exclude any group of clients and, as stated in our last press release, the rollout of the government bailout will be done in phases, ”the SEC said in a statement.
The SEC also explained that the agreement it had with the government was that the rescue phases would take place only after the validation of the claims and settlement orders were secured.
“The first phase will cover the clients of the twenty-two (22) companies that are currently in official liquidation by court order, based on their validated claims. The Official Liquidator will communicate the details of the payment process to the affected clients as of September. The second phase would cover the clients of the other companies once the liquidation orders have been obtained ”.
“The point that is being made, therefore, is that receiving the government bailout is based on the completion of the validation and the obtaining of the liquidation orders. Therefore, it is a question of time and nothing more, ”the SEC noted.
The SEC also used the statement to respond to some of the claims made by Blackshield Capital Management Limited.
“Blackshield alleges that the SEC issued a public notice in 2017 stating that its Structured Finance (SF) product must be discontinued within six (6) months of the directive date. In addition, they alleged that this unique SEC directive triggered unprecedented redemption lawsuits by Blackshield clients and other fund managers, leading to a backlog of payments. This is inaccurate. The SEC did not issue a public notice in 2017 stating that the SF product would be discontinued. “
Second, Blackshield alleges that the SEC refused to grant approval to an alternative product. This is another falsehood. “
Disclaimer: The opinions expressed in this article are those of the author and in no way reflect those of the Ghana Crusader.
