Visit CBG branches to validate your claims – SEC to customers of collapsed Fund Management Companies

The Securities and Exchange Commission, SEC has indicated that customers of Fund Management Companies whose licenses were revoked on Friday should visit Consolidated Bank of Ghana branches to validate their claims.

SEC disclosed that the process, which will begin in earnest on Tuesday, November 12, 2019, is expected to last for two weeks.

Addressing concerns of customers of the collapsed Fund Management, Paul Ababio, Deputy Director-General of the SEC, noted that affected customers who visit the CBG branches ought to take along their bank account details, investment certificates and other documents that may be of the essence.

“All those who have investments with any of these investment firms, you are encouraged to gather your investment certificate or whatever investment you may have and we will make branches of CBG available. They can go there and copies will be made of their certificate for validation, which is starting today” Paul Ababio said.

“From tomorrow customers can start to approach the branches of CBG,” he said but noted that his outfit will issue a press release providing further details and directives to make the process convenient and simple for all.

He added, “We are working with a two-week window for now, and I think once the process gets going we will get a good sense of where the positions are and I think we are also looking at a capped amount to be paid,” in an interview on Joy FM.

He was doubtful that customers will be paid the full sum of their investment, but, was confident that they will receive part payment of their investment.

Paul Ababio said the money to be used to pay them will be generated from government support to help minimise the inconvenience the collapse will cause and secondly, from the sale of assets of the collapsed companies.

A total of 53 Fund Management Companies have had their licenses revoked by the Securities and Exchange Commission (SEC).

The revocation of the licenses, the SEC explained, has become necessary as the affected companies “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. The SEC has concluded after extensive engagement with these institutions that their continuous existence in the light of their
conduct poses severe risks to the stability of the capital market and to the interests of investors,” a statement released by the SEC explained.