The Akufo-Addo government has said it has committed an amount of GH¢3.1 billion “toward supporting investors in failed asset management companies regulated by the Securities and Exchange Commission (SEC)”.

On 8 November 2019, SEC revoked the licenses of 53 Fund Management pursuant to Section 122 (2) (b) of the Securities Industry Act, 2019 (Act 929), which authorises SEC to revoke the licence of a market operator under some circumstances.

SEC, in a statement, explained that the revocation followed the companies’ failure to “return client funds which remain locked up and in a number of cases, have even folded up their operations.”

The full list of the affected institutions at the time:

1. All-Time Capital Partners Limited

2. Alpha Cap Securities Limited

3. Axe Capital Advisors Limited

4. Apex Capital Partners Revoked

5. Beige Capital Limited Revoked

6. Brooks Asset Management Limited

7. Cambridge Capital Advisors Limited

8. Canal Capital Limited Revoked

9. Corporate Hills Investment Ltd.

10. Dowjays Investment Limited

11. EM Capital Limited Revoked

12. Energy Investments Limited

13. Fromfrom Capital Limited

14. Frontline Capital Advisors Limited

15. FirstBanc Financial Services Limited

16. Galaxy Capital Limited

17. Gold Coast Fund Management Limited

18. Gold Rock Capital Management Limited

19. Goldstreet Fund Management Limited

20. Global Investments Bankers Limited

21. Heritage Securities Limited

22. Ideal Capital Partners Limited

23. Integrity Fund Management Limited

24. Intermarket Asset Management Ltd

25. Kripa Capital Ltd.

26. Kron Capital Limited

27. Legacy Financial Services

28. Liberty Asset Management Limited

29. Kamag Kapital Limited

30. Mak Asset Management Limited

31. Man Capital Partners Limited

32. Mec-Ellis Investment(Ghana) Limited

33. McOttley Capital Limited

34. Monarch Capital Limited

35. Mutual Integrity Assets Management Limited

36. Nesst Capital Limited

37. Nickel Keynesbury Limited

38. Nordea Capital Limited

39. Omega Capital Limited

40. Procap Finance Company Limited

41. QFS Securities Limited

42. SGL Royal Kapita Limited

43. Sirius Capital Limited

44. Strategic Hedge Capital Limited

45. Standard Securities Limited

46. Supreme Trust Capital Limited

47. Tikowrie Capital Ltd.

48. Unisecurities Limited

49. Universal Capital Management

50. Ultimate Trust Fund Management Ltd.

51. Utrak Capital Management Limited

52. Wealth Vision Financial Services Limited

53. Weston Capital Limited

Voluntary Cessation

1. HFC Capital Partners Limited

2. Attai Capital Limited

3. Serengeti Capital Limited

4. Indigo Investment Management Limited

5. Verit Investment Advisory Limited

In its recently-launched 2020 manifesto, the governing party said those who invested in the collapsed asset management companies will be given monetary support.

Also, the NPP said as of the end of the first quarter of 2020, a total amount of GH¢13.6 billion has been spent on the resolution of failed banks, Specialised Deposit-taking Institutions (SDIs), Micro Finance Institutions (MFIs), the establishment of the Consolidated Bank Ghana Limited (CBG), as well as the capitalisation of the Ghana Amalgamated Trust (GAT).

“Additionally, with the President’s directives to pay fully all depositors whose funds were locked up with the failed SDIs and MFIs, an amount of GH¢5 billion was spent. This brings the total expenditure on financial sector interventions as at June 2020 to GH¢18.6 billion”.

In addition to the GH¢3.1 billion support to investors who fell victim to the collapse of the fund management companies, the total amount used by the government to clean the financial sector would be GH¢21.60 billion.

The NPP said it “inherited a weak and fragile financial services sector from the Mahama-led NDC Government. Many financial institutions had either collapsed or were on the verge of collapse”.

Source:myashhfmonline.com

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