SEC ready to pay GH¢9.96bn to 90,000 customers of failed investment firms
More than 90,000 customers of collapsed investment companies are set to collect GHC 9.96 billion, the Securities and Exchange Commission has revealed.
The Securities and Exchange Commission (SEC) has said it has recorded and validated their claims after the licenses of 53 investment firms were revoked in November 2019.
The Director-General of the SEC, Rev. Daniel Ogbamey Tetteh said they had estimated that 77,000 clients would be affected by the closures.
But the actual figures during the process of validation was more.
SEC had also estimated the locked-up funds would be GHC 8.08 billion with GHC 5 billion considered as assets at risk.
But again, the SEC estimate was surpassed by more than 1bn cedis
These figures were revealed by Rev Ogbamey during a virtual conference organized by the African Centre on Law and Ethics (ACLE) at the GIMPA Faculty of Law and the GIMPA Business School on Wednesday, August 6.
Rev Ogbamey noted that validation of the claims was almost complete for the firms with available full records.
Additionally, liquidation orders for 22 firms have been secured and the Ministry of Finance has communicated the government’s support for the payment of claims, he said.
SEC said it was their expectation “to implement the bailout package in the coming weeks to bring respite to affected workers” to ensure confidence in the sector.
The regulator identified the main causes of the crises as structural challenges, the conduct of operations, governance of the companies, financial literacy, and regulatory issues.
The SEC Director-General said the regulator was preparing operations conduct and business guidelines which would be issued in the coming weeks.
He urged the Ghana Securities Industry Association “to require standards of ethical behaviours of their members” as a self-regulatory organisation.
Revocation of licenses
SEC revoked the licences of the 53 fund management companies on November 8, 2019.
The revocation of the licences of the specified companies become necessary as SEC stated that the firms have “largely failed to return client funds which remain locked up and in a number of cases, they have even folded up their operations”.
“Essentially, they have failed to perform their functions efficiently, honestly and fairly and in some cases are in continuing breach of the requirements under relevant securities laws, rules or conditions, despite opportunities provided to them by the SEC within a reasonable period of time to resolve all regulatory breaches,” a statement by SEC said.
KINDLY GET YOUR INFORMATION RIGHT,, AS SEC HAS NOT COME CLEAN ,,ON THE POSITION OF FUND MANAGERS WHO ARE IN COURT WITH SEC,, MEANWHILE CUSTOMERS OF THE FUND FIRMS ,,NEED THEIR MONEY,,,,, WHILST SEC THROUGH THE ATTORNEY GENERAL IS ALWAYS GETTING ADJOURNMENT,INSTEAD OF EXPEDITING THE COURT ACTION, ,,,,,,,,WHEN THE LEGAL YEAR STARTS ANOTHER DELAY WILL SET IN,,,IF THINGS ARE NOT DONE PROPERLY,,, THE 2020 ELECTIONS WILL BE DISTORTED,,AS
TO VOTE FLOW,,!!
SEC SHOULD GO AHEAD AND PAY AND FORGET ABOUT THOSE IN COURT. WE WILL VOTE NPP OUT IF THEY DONT PAY US. WHY MUST WE SUFFER. IF THOSE IN COURT WINS, THEY ONLY GET THEIR LINCENCE, NOT THE MONEY BECAUSE THE MONIES HAVE BEEN PAID TO THE RIGHTFUL OWNERS
We are appealing to SEC to pay us monies because it is only God keeping us till this time. We are in dying need of our money. Most customers are in critical need of money others are even dead .bothering about this same lock up funds. Rev Ogbamy and team please hurry up and let’s also have our peace of mind to boost our health in this Covid era
You’re right oo. Had a car accident and has affected me but I have no money for check ups. They should stop the delay and just pay us ooooo.
That’s a valid point. Please pay us our money.
Please we need our money, enough of these long talks. THIS GOVERNMENT MUST PAY US OUR MONEY OR ELSE 2020 HMM….
SEC. ..Pay as now. .we are suffering.
We have really suffered for the past two years. As to what Rev. Ogbamey is saying true or not until the money is credited to my account I cannot believe it’s TRUE. Why subject your own citizens to such hardship. The banking sector enjoyed an early bail out leaving the investment fund management. What sis did we do wrong? We deposited our moneys in institutions with valid licenses from SEC. Oh Ghana my motherland. What we’ve suffered is an eye opener. If BoG and SEC can fail us big time. Never again
Oh npp goverment,you are chasing die hard npp guys not to vote again,not me alone with those they depend on me bcos of fund lock up.
NPP are playing with fire. 45,000 voters and their dependents can make difference in the election assuming half of the 90000 voted for NPP in the last election. Some of us have campaigned and defended NPP in all elections but not this time when my investment has gone.
90,000 not 45000
SEC has been very unfair to we the customers
I think SEC has been very unfair to we the customers. Always very soon. When is the soon coming. Pls pay us our funds SEC and stop this delays else NPP government will bear the end results.SEC we need our money ooo.
NPP government should know there is implication of their actions on election outcomes. To suggest you have paid those under the BoG savings and loans collapse is complete falsehood. When you government go to the international market and issues bonds to investors, have you paid them or they have rather lent you money. I never heard this lie before. Avoid doing same zero coupon bond scandal in the fund managers case. You had better say there is no money, you can’t absorb the debt. Those of us who are financially literate would embark on educating the general public such that even if they are not direct victims of the collapsed institutions and your bad actions, they will align with the sentiments of the suffering investors and expose your falsehood. Expect more people to aim to vote you out, even from within the NPP support base. I am from Kumasi and an active NPP supporter and a registered party member in my constituency. You have no idea what is coming from your own stronghold because of this financial crisis scandal.
We the customers are now tired with this SEC theory. Aba.
What’s wrong with NPP…people are suffering for their money…you guys just ignored them hidden behind court case funny people..pay them massa
We are tired of this sec people they keep on telling us we will hear from them in the coming weeks which is about two months ago. So when is the day of the coming weeks.
Sec do not forget those fund mangers who were supposed to get new fund managers for their funds. They are playing games with costumers fund. What is the update
The most important thing to me right now is to know when actual disbursement of customers’ funds will hit their accounts. Enough of the promises and procrastination on the side of sec over and over again.
pay us, pls we are suffering.
Sec (Govt) has been really unfair to investors, the govt is actually disgracing some of us who complained and adopted several polling stations.
With this funds locked up, it is now difficult to provide for my family.
The time to save npp and depositors lives is not.
NANA DO SOMETHING BE4 U DIE
THE POWER OF DKM CAN THAT HIT NDC CAN TURN ON U
Sec (Govt) has been really unfair to investors, the govt is actually disgracing some of us who complained and adopted several polling stations.
With this funds locked up, it is now difficult to provide for my family.
The time to save npp and depositors lives is not.
NANA DO SOMETHING BE4 U DIE
THE POWER OF DKM CAN THAT HIT NDC CAN TURN ON U
I know NPP is a listing government please honor your promise and pay the customers deposit. Some are pensioners petty traders who invested our hard earned money please be considerate.
NPP don’t pay us our Momey and rely on Free SHS policy for vote. The students You trust are the one insulting you the president. Wait and see 7th DECEMBER 2020 election results. Shock.
NPP don’t pay us our Momey and rely on Free SHS policy for vote. The students You trust are the one insulting you the president. Wait and see 7th DECEMBER 2020 election results. Shock.
Payment or no payment, the harm has already been done.Every action has a counter action.I believe that the Almighty God in Heaven has heard the CRY of investors, He will, l believe,send Angels from Heaven to vote out this vendictive Government.
I am just counting days to go and vote him out la! He has caused me more harm: borrowing and begging for money to cater for 2 kids has not been easy. I just can’t wait for 7th December
Hmm we shall see come December 7TH
I heard fr om net2 TV the seat show monday the monies have been released to SEC to pay costumers please SEC be quick and let us have our monies the government can’t be blamed again.
How would I know if am part of those whose names are part of those who cannot access their fund since some customers are legitimately not going to be payed according to SEC’s report after the verification process.
Hmmmm man am also in a state of dilemma is there anything to do to know if I passed through the verification process successfully. My life lies in the hand of SEC
We need our money now
NPP is going down in this election for sure!.. such wickedness and greed against your our people.. God will punish you.
Please we need our monies by the end of the month
So WHEN AT ALL ARE YOU PAYING OUR MONIES