Locked-up funds: Timetable for disbursements out

THE Securities and Exchange Commission (SEC) has announced the timetable for disbursing locked-up funds to investors affected by the collapse of fund management companies whose licenses were revoked in November 2019.

In a statement dated September 12, 2024, the SEC referenced the government’s approval, through the Ministry of Finance, to release GH₵1.5 billion as part of a bailout program for impacted investors.

“The total amount of GH₵1.5 billion will be released in three phases, beginning with an initial tranche of GH₵700 million in August 2024, followed by GH₵400 million in October 2024, and the final GH₵400 million in December 2024. This is in addition to the GH₵4.46 billion previously disbursed to investors with validated claims,” the statement said.

According to the SEC, the bailout funds released so far have enabled the settlement of 84,202 investor claims from the failed fund management companies. Of these, 69,445 claims, representing approximately 82% of affected investors, have been fully resolved.

“This decision, motivated by humanitarian considerations, will provide further financial relief to those affected, including investors of Blackshield Capital Management Limited (formerly Gold Coast Fund Management Limited) and Kron Capital Limited,” the statement continued.

The SEC clarified that the bailout applies to investors with validated claims who have accepted the government’s bailout package. “Under this current release, investors will receive the greater of GH₵50,000 or 15% of their outstanding examined claims,” it noted.

This additional payout is expected to fully settle close to 91% of the affected investors.

The disbursement will be managed through the Special Purpose Vehicle, Amalgamated Mutual Fund (AM Fund), which is overseen by GCB Capital Ltd. The SEC added, “The managers of AM Fund will hold a meeting in the coming days to provide guidance for those wishing to access the funds, as well as discuss the option of leaving their claims in the AM Fund for further management.”