The Securities and Exchange Commission, SEC has responded to client concerns about the disbursement of the GH5.5 billion bailout funds approved by parliament and the progress of the winding-up order process raised by Blackshield Fund Management Company Limited, formerly known as Gold Coast Fund Management Limited.
In a statement, the SEC said the GH¢5.5billion approved by parliament was for all investors of the 47 companies that had claimed by investors and not solely for Blackshield/Gold Coast investors. It emphasised that all investors with validated claims have been contacted by the Amalgamated Fund and GCB Capital Ltd. – the entities managing the implementation of the bailout. However, the government has yet to release the full GH¢5.5billion to the implementing agencies.
The SEC presented updates on the distribution of bailout monies and stated that GH 4.6 billion has been allocated, of which GH 3.1 billion has been assigned to Amalgamated Fund Tier 1 payments and GH 1.45 billion to Amalgamated Fund Tier 2 payments. The organization also noted the partial bailout program, which involved paying clients of Blackshield/Gold Coast and other businesses that had valid claims but had not yet gotten court-issued winding-up orders by October 2020 amounting to GH50,000.
The SEC clarified that it has complied fully with Blackshield/Gold Coast’s request for documents and is not delaying the court process.
The SEC advised impacted clients to maintain their composure and only rely on the information given by the SEC and the designated liquidator. Since 53 fund management firms (FMCs) had their licenses revoked on November 8th, 2019, the organization has been working to safeguard investors’ interests and the integrity of the capital market.
Due to several regulatory violations, including their inability to restore clients’ assets valued at GH8 billion and serious infractions of the law that posed dangers to financial stability, the licenses were withdrawn.
Clients of Blackshield/Gold Coast were reassured by SEC that it was closely coordinating with the government, the official liquidator and other parties involved in the winding-up procedure to make sure that all claims were verified and that assets and liabilities were transferred to the Registrar of Companies.
