No need for panic withdrawals – SEC to customers of Fund Managers in good standing

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The Securities and Exchange Commission has entreated customers of  Fund Management Companies whose licenses are intact to desist from panic withdrawals in the wake of the revocation of the licenses of some 53 fund managers, ABC News can report.

According to the SEC, the non-revocation of the licenses of some Fund Management Companies signified that those companies are solvent, hence there is no need for their customers to worry about the status of their investments.

It therefore, urged the public to visit its website (www.sec.gov.gh) to obtain a list of all companies whose licenses have not been revoked to inform their investment decisions.

“There is also no need for any panic withdrawals on the firms whose licences are intact and not on the revocation list. A list of firms whose licences have not been revoked can be found on the SEC website (www.sec.gov.gh),” the Commission urged.

The SEC, Friday evening, announced the revocation of the licenses of more than 50 Fund Management Companies for failing to comply with the conditions or restrictions applicable in respect of the license, among other infractions.

The revocation of the licences, the SEC explained, has become necessary as the affected companies “have largely failed to return client funds which remain locked up and in a number of cases, they have even folded up their operations.”

“Essentially, they have failed to perform their functions efficiently, honestly and fairly and in some cases are in continuing breach of the requirements under relevant securities laws, rules or conditions, despite opportunities provided to them by the SEC within a reasonable period of time to resolve all regulatory breaches. The SEC has concluded after extensive engagement with these institutions that their continuous existence in the light of their
conduct poses severe risks to the stability of the capital market and to the interests of investors,” a statement released by the SEC explained.

The companies whose licenses have been revoked include; Apex Capital, Partners Revoked, Beige Capital Limited Revoked, Brooks Asset Management Limited, Cambridge Capital Advisors Limited, Canal Capital Limited Revoked, Corporate Hills Investment Ltd, Dowjays Investment Limited and EM Capital Limited.

The SEC assured customers of the affected companies that its authorized agents and the  yet-to-be-appointed Liquidator will work together with government to pay a capped amount to all affected investors.

The move, the Commission indicated, is in line with the government’s  commitment to support the securities industry and to provide some immediate relief to investors who are hurting because of their locked-up funds.

By the close of business on Monday the 11th of November 2019, SEC, together with its authorized agent, will provide further details about the validation process and specific locations where investors can present their claims to be validated. In the interim we urge all investors to remain calm, gather all receipts, statements and any other documentation related to their investment with the affected institutions,” the Commission stated.

Source: ABCNewsgh.com

 

 

 

 

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