Promising to pay clients of collapsed fund managers while ignoring struggling firms’ customers worrying – GSIA
September 1, 2020
The Ghana Securities Industry Association (GSIA) says a promise by the government to settle persons whose cash has been locked up with collapsed fund management companies while customers of existing firms struggle to access their cash sends a wrong signal.
“A commitment to pay clients of firms whose licenses have been revoked while customers of operating firms are still waiting for cash pay-outs sends the wrong signals to the industry; the pay-off for having a license revoked may be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,” GSIA said in a statement.
GSIA made the observation days after the Securities and Exchange Commission (SEC) announced that the government will soon come up with a bailout package in the form of social interventions for customers whose cash had been locked up in collapsed fund management companies.
Although GSIA acknowledged that the assurance was timely given the severe distress persons who invested their cash through these firms have been under, there is, however, “uncertainty regarding payment of their investments as promised by Government.”
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