UPDATE ON BAILOUT IMPLEMENTATION PROGRAMME
The Securities and Exchange Commission (hereinafter referred to as the “SEC”) is the statutory body mandated by the Securities Industry Act 2016 (Act 929) to promote the orderly growth and development of an efficient, fair, and transparent securities market in which investors and the integrity of the market are protected.
The Securities and Exchange Commission (SEC), acting within its mandate of protecting investors and the integrity of the securities market, wishes to update the general public on the implementation of the bailout programme for clients of defunct Fund Management Companies (FMC).
UPDATE ON LIQUIDATION ORDERS:
The courts have granted thirty-seven (37) liquidation orders to the Official Liquidator (The Registrar-General) as of the 31st March 2021, out of the forty-seven (47) Fund Management Companies with claims from investors after the revocation. Virtual Creditor and Class meetings have been held by the Official Liquidator for clients of thirty-four (34) of these companies. Companies with Liquidation Orders yet to have Creditors & Class Meetings are:
- Firstbanc Financial Services
- Procap Finance Company
- Strategic Hedge Capital Limited
The remaining ten (10) companies that have their liquidation petitions currently pending before the High Court for hearing are:
- Apex Capital Partners Ltd.
- Beige Capital Asset Management Ltd.
- Blackshield Capital Management (formerly Gold Coast Fund Management Ltd).
- Dowjays Investment Ltd.
- Frontline Capital Advisors Ltd.
- Kron Capital Ltd.
- Liberty Asset Management Ltd.
- Omega Capital Ltd.
- Universal Capital Mgt. Ltd.
- Wealth Vision Financial Services Ltd.
VALIDATION OF CLAIMS:
As of the 31st March 2021, out of a total of One Hundred Thousand, Eight Hundred and Ninety-Eight (100,898) claims received against forty-seven (47) companies valued at Eleven billion, Seven Hundred and One million Ghana Cedis (GHS 11.70 billion), a total of One Hundred Thousand, Seven Hundred (100,700) claims valued at Eight billion, Three Hundred and Fourteen million Ghana Cedis (GHS 8.314 billion) have so far been validated. This means that an estimated 99.8% of the total claims filed have been validated with an almost 30% found to be unwarranted. Claimants who disagree with validated amounts are engaging the agent of the SEC for further examination.
FULL BAILOUT PROGRAMME:
A total of Eight Thousand, Three Hundred and Seventy (8,370) claimants out of a total of Eleven Thousand, Six Hundred and Sixty-Five (11,665) claimants have signed up for the full bailout programme as of the 31st March 2021. The full bailout programme has so far been executed over three phases:
- Phase 1 (As at end of October 2020): The total value of claims that were considered for this first phase of the Bailout Program was One billion and Seven Hundred million Ghana Cedis (GHS1.7 billion) from the twenty (20) FMCs whose Liquidation Orders had been granted by the Courts and gazetted. Out of the total value claims of claims in phase one, One billion and One Hundred million Ghana Cedis (GHS 1.1billion) of the claims were validated accordingly.
- Phase 2 (As at end of November 2020): The total value of claims considered for the second phase of the Bailout Program amounted to One billion and Eight Hundred million (GHS 1.8 billion) from the eight (8) FMCs whose Liquidation Orders had been granted by the Courts and gazetted. Out of these claims, One billion Ghana Cedis (GHS 1.06 billion) of these claims were validated accordingly.
- Phase 3 (As at end of March 2021): The total value of claims being considered for the current phase of the full Bailout Programme is Six Hundred and Thirty-Seven million Ghana Cedis (GHS 637 million), from six (6) FMCs whose Liquidation Orders have been granted by the Courts and gazetted. Out of these claims, Five Hundred and Fifty-Six million Ghana Cedis (GHS 556 million) have been validated.
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