The Securities and Exchange Commission (SEC) has announced that the government has approved the release of GH¢1.5 billion to bail out affected investors of defunct fund management companies.
This move aims to provide financial relief to thousands of investors who lost money in the 2019 fund management industry license revocation exercise.
According to the SEC, investors will receive the higher of GH¢50,000 or 15 percent of their outstanding examined claims on the defunct firms.
This top-up is estimated to result in close to 91 percent of affected investors being fully settled.
The bailout will be rolled out through the Special Purpose Vehicle, Amalgamated Mutual Fund (AM Fund) managed by GCB Capital Ltd.
The managers of AM Fund will hold a meeting in the coming days to provide guidance for those who would want to access the released funds as well as the prospects for leaving the claims in the AM Fund to be managed.
This bailout package is in addition to the GH¢4.46 billion previously released, bringing the total amount to GH¢5.96 billion.
The GH¢1.5 billion will be released in three tranches, with the first tranche of GH¢700 million to be disbursed in August 2024, followed by GH¢400 million each in October and December 2024.
The SEC stated that this decision was driven by humanitarian considerations and will provide further financial relief to those impacted by the revocation.
The bailout covers investors with examined claims who have accepted the government’s bailout package, including those who invested in Blackshield Capital Management Limited (formerly Gold Coast Fund Management Limited) and Kron Capital Limited.
Affected investors can visit the bailout portal or contact the SEC for more information.
This move is seen as a significant step towards restoring confidence in Ghana’s securities market and protecting investor interests.
