Customers of collapsed fund management firms to demonstrate on March 24

Customers of collapsed fund management firms have issued yet another threat to hit the street, if their locked up funds are not paid them.

The aggrieved customers of the 53 institutions want the government to extend its promise to pay customers of defunct microfinance companies to them.

They have also vowed to vote massively against the government during the general election, on December 7, if their investments were not paid.

Speaking during a press briefing in Accra, Public Relations Officer of the customers, Charles Nyame, challenged the government to address their grievances before March 24.

“We are expecting the government to come out before the 24^th of March this year or we will embark on a demonstration on the streets of Accra…we have also said that if by election time our views are not addressed, we will resolve as a group with our families to vote against the government,” he warned.

In November 2019, the Securities and Exchange Commission (SEC) revoked the licenses of 53 fund management firms across the country.

According to SEC, the affected companies failed to return client funds which remained locked up in contravention of the investment rules.

Notable among the affected companies were All Time Capital, FirstBanc and Blackshield Capital Management (formerly Gold Coast Fund Management).

The commission gave the assurance that the revocation of the licenses was to sanitise the sector while boosting investor confidence.

But months after the cleanup exercise in the sector, customers whose funds were locked up are yet to receive their monies.

Rather, in January 2020, SEC directed the boards of directors (for Mutual Funds) and trustees (for Unit Trusts) of 18 Collective Investment Schemes (CIS) whose Managers had their licences revoked to appoint new fund managers for the management of their scheme by January 10,  2020.

Six companies have so far met the SEC directive.