No Customer Of Defunct Fund Managers Will Be Excluded In Bailout – SEC

The Securities and Exchange Commission (SEC), has assured customers whose funds have been locked-up in the 53 defunct fund management companies since November 2019, that the government bailout packages will not exclude them.

In a statement issued on Wednesday, September 2, 2020, the SEC stated that its earlier statement which announced the bailout packages was misinterpreted.

“We wish to assure all affected clients that the government bailout package is all-inclusive, provided claims have been validated and liquidation orders secured. The SEC reiterates the fact that there is no plan to exclude any group of customers and as indicated in our last press release, the roll-out of the government bailout will be done in phases,” SEC’s statement read.

The general public had raised concerns that an earlier statement indicated that Papa Kwesi Nduom’s company and three others had been excluded.

The SEC also explained that the bailout packages will be implemented in phases but, only after validation of claims and liquidation orders are secured.

“The first phase will cover clients of the twenty-two (22) companies currently under official liquidation per Court orders, based on their validated claims. The Official Liquidator will communicate details of the payment process to affected clients starting in September. The second phase would cover clients of the remaining companies after the liquidation orders are secured,” the statement read.

The SEC noted: “The point being made therefore is that receiving [the] Government’s bailout is predicated on completion of validation and securing of liquidation orders. It is therefore a question of timing and nothing else”.

Indications earlier suggested customers of Blackshield Capital Management Limited and three other fund management firms would not benefit from the package because such companies were challenging the revocation of their licences in court.

It led to agitation among clients of the affected companies with some of the customers going to picket at the premises of the Ministry of Finance on Tuesday, September 1, 2020.

The SEC in a response said: “Blackshield alleges that the SEC issued a public notice in 2017 directing that their Structured Finance (SF) product should be discontinued within six (6) months from the date of the directive. They further alleged that this singular directive by SEC set into motion unprecedented demands for redemption by customers of Blackshield and other fund managers leading to a backlog in payment. This is inaccurate. The SEC did not issue a public notice in 2017 directing that the SF product be discontinued.

“Secondly, Blackshield alleges that the SEC refused to grant approval to an alternate product. This is another untruth.”

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