The Ghana Securities Industry Association (GSIA) has noted the Securities & Exchange Commission’s (SEC’s) release on the actions taken on liquidated asset management firms. The SEC’s release is no doubt timely given the severe distress investors who invested their cash through these firms have been under, more so, when there has been a lot of uncertainty regarding payment of their investments as promised by Government.
Fund Management Firms still in operation
There is adequate cause for concern, however, on the lack of traction on pay-outs to clients of firms whose licenses were not revoked. To date, less than Ghs 90 million out of Ghs 1.58 billion due these investors has been paid in cash. This represents less than 6% of the total amount due. We are yet to realise the fulfilment of a promise by Government to pay up to 20% more in cash, leaving 80% in bonds. A commitment to pay clients of firms whose licenses have been revoked while customers of operating firms are still waiting for cash pay-outs sends the wrong signals to the industry; the pay-off for having a license revoked may be more than that for keeping an investment firm in operation.
For More: https://www.gsiaonline.org/notices-press-releases/274/press-release-actions-on-pay-outs-to-clients-of-fund-management-firms-31st-august-2020/