New Year Message from the CEO
February 24, 2022
Dear Valued Client,
I always look forward to the rare privilege of communicating to clients of IGS Financial Services Limited. This exercise affords me the singular and humbling opportunity to share the strides we are making as a company. Additionally, a message such as this helps me to fully express my uttermost gratitude, to you, for keeping faith with IGS Financial Services Limited.
On the back of the financial sector reforms, which has left in its wake liquidity challenges for almost all players in the financial sector, we have had a reason to be more grateful to our clients. Your tolerance and patience have been commendable, and one that we do not take for granted. Even though the narrative has not been all rosy, we understand all the comments and criticisms, from you, our cherished clients. They keep us on our toes and make us better.
Admittedly, the entire sector is yet to fully recover from the shocks that characterized the financial sector reforms. As a major and a reputed player, ranked as the 7th largest Fund Manager by the Securities & Exchange Commission, as at Dec. 31. 2019, IGS Financial Services Ltd, just like other players, has not been spared its share of challenges, arising out of these reforms. Frequent and panic withdrawals that came with the reforms, have posed some liquidity challenges to players in the sector.
Currently, there are two Bank of Ghana regulated institutions that we have placed some funds, on behalf of our clients, that cannot honor our redemption requests. We have had several engagements with Bank of Ghana on the way forward to getting these matters resolved. Fortunately, Management of Bank of Ghana have admitted to being aware of these challenges and have promised to resolve same soon. In the meantime, we have taken additional measures against these institutions. Subsequently, the Government has budgeted GHS 1 billion, as financial sector clean-up cost to support the financial sector, using the Ghana Amalgamated Trust (GAT) model-(see pages 8,58,64,89, and 226 of the 2022 national budget). We trust that, in due course, this GAT vehicle will provide the needed liquidity in the financial sector and expedite the recovery process.
Additionally, you can be rest assured of our unrelentless efforts at recovering the remaining 8% of funds under receivership. Indeed, as earlier communicated, all our claims have duly been validated by the Receiver. Currently, the only outstanding issue is the date for the commencement of payments, which we are rigorously following up and monitoring.
As the Chief Executive Officer, I can confirm, to you, that we have left no stone unturned in our bid to recover and pay outstanding redemption requests. Although there have been some delays, your continued support and patience energize us to continue to roll out efforts to not just recover the funds but to put your interest at the center of every decision.
I have no doubt that we have learnt a lot of lessons from the financial reforms. In response to these issues, we are restructuring our business, recalibrating our processes, and devising new strategies to invest clients’ funds, while we protect our clients against shocks that come with such degree of regulatory intervention/uncertainties in the financial sector. Also, our products have been reviewed to best serve the investment needs of our clients. (This has since been communicated).
As we go through the year, we look forward to more fulfilling financial journey with you and want to reassure you of our sustained commitment to our fiduciary responsibility to you. Please be rest assured that our open lines of communication and transparency will further be deepened, this year.
Thank You, once again.
Wishing you all a fulfilling 2022.
Raymond A. Gogo
Chief Executive Officer