Pay us or face our wrath – Customers of failed fund managers
Some customers of collapsed investment firms have hinted of a demonstration if they do not receive their locked-up funds.
The Coalition of Aggrieved Customers of Collapsed 53 Fund Management Companies is demanding inclusion in government’s bailouts or else they would hit the streets.
The group mostly comprising customers of Black Shield Capital Limited (formerly Gold Coast) are fighting off suggestions by the Securities and Exchange Commission (SEC) of inaccessibility to their documents.
“Why would SEC sideline majority of the customers that is Gold Coast fund management customers who form 83% of the entire customers who are affected,” the Secretary of the Coalition, Joseph Aryeetey, questioned at a press conference.
“The question then is which people are they paying? Are they going to pay ghosts?”
A statement issued by SEC said 22 of the firms would have payments for its customers whose claims have been validated.
The regulator explained that the Official Liquidator, the Registrar General, will communicate details of the payment process to affected clients starting in September.
However, SEC said no action could be taken for clients of Blackshield Capital Management Limited, Firstbanc Financial Services Limited, Apex Capital Partners and Ideal Capital Partners Limited since they have filed applications in court to challenge the revocation of their licences by the Securities and Exchanges Commission.
However, the Coalition said this was inaccurate.
In a related development, BlackShield Capital Management Limited also issued a statement to counter SEC’s claims.
“The SEC and its agents in its dealings with BlackShield have not been fair and candid with the customers of BlackShield who have had to bear the brunt of these actions,” the release explained.
“This allegation against Blackshield is yet another attempt to mislead the public into blaming BlackShield for its failures. It is noteworthy, that the SEC, refused BlackShield’s application to cease executing the order of revocation pending the hearing of its complaint.
“SEC has had full access to the client’s information at least on three different occasions between 2019 till date,” the statement stressed.