GOVERMENT AUTHORIZES PARTIAL BAILOUT FOR ALL REMAINING CUSTOMERS OF REVOKED FUND MANAGEMENT COMPANIES PENDING THE OUTCOME OF LIQUIDATION PETITIONS. (ENSURING INVESTOR PROTECTION)


 




Story by FIFELOLA OLAYINKA MICHAEL



Government authorizes partial bailout for all remaining customers of revoked fund management companies pending the outcome of liquidation petitions today 19 Nov 2020 at Labadi Beach Hotel with Ghana News Desk.


The Securities and Exchange commission is the apex regulatory body of the securities industry in Ghana mandated by the securities industry Act 2016 (ACT 929) to protect investors and the interest of the general investing public.


The Act among other things specifically mandates SEC to "promote the orderly growth and development of an efficient, fair and transparent securities market in which investors and the integrity of the market are protected".


In accomplished the vision as a top-tier securities market regulator in Africa and the mission is to promote growth and development of an efficient, fair and transparent securities market in which investors and the integrity of the market are protected.


The securities and Exchange Commission (SEC), acting within its mandate of protecting investors and integrity of the market,wishes to announce the outcome of its deliberations with Government regarding an agreed social and humanitarian intervention for all remaining customers of the failed fund management companieshield.

The commission hereby announces that Government has authorized a partial bailout which involves a partial payment of up to Fifty Thousand Ghana CEDI's (GHS50,000) to all customers of the remaining affected Fund Management Companies while the court process on the liquidation petition and other matters continue.


The decision to make this partial payment is predicated on Government's commitment to protect its citizenry and its sensitivity to the plight of affected clients compounded by the disruptive impact of the Covid-19 pandemic.


Furthermore, this intervention has become necessary at this stage because liquidation petitions for the remaining affected fund Management companies are currently at different stages.


In addition, some affected Fund Management Companies like Gold Coast Fund Management Limited (now Black shield Fund Management Companies limited) are contesting the liquidation petition and as a result, have filed a stay of proceedings until its application for judicial review of the decision of the administration hearings committee has been heard.


There is the possibility for these legal processes to take some time and,therefore, extend the pain and suffering of the affected investors hence this decision by the Government.


This compassionate move by Government of a partial bailout would cover all clients of the failed Fund Management Companies whose licenses were revoked but are yet to come under official liquidation including customers of Black shield.

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