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SEC clarifies GH¢5.5bn approved by Parliament for all defunct fund management companies’ customers

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SEC clarifies GH¢5.5bn approved by Parliament for all defunct fund management companies’ customers
Blackshield customers

The Securities and Exchange Commission (SEC) has denied reports that the GH¢5.5 billion approved by to settle the owed customers of defunct fund management companies is only for Defunct Gold Coast Management, now Blackshield customers.

SEC stated that the approved funds are for all investors in the 47 fund management companies that were closed down by the regulator.

SEC's clarification followed comments from some Blackshield Fund Management clients who suggested that the funds should only be distributed to fund investors.

The regulator noted that GH¢4.6 billion of the approved amount has been allocated to date, with GH¢3.1 billion for Amalgamated Fund Tier 1 payments and GH¢1.45 billion for Amalgamated Fund Tier 2 payments.

The disbursement included the partial bailout program, which entailed payment of up to GH¢50,000 to clients of Blackshield/Gold Coast and other firms who had not received winding-up orders from the court by October 2020, but whose claims had been validated.

A total amount of GH¢1.34 billion was paid to 73,541 investors of Blackshield as part of the partial bailout, and GH¢757,539,141 was used to fully settle 61,734 customers of Blackshield.

According to the SEC, all investors with validated claims have been contacted by Amalgamated Fund and GCB Capital Limited for further action.

The regulator also assured Blackshield Fund Management customers of its ongoing compliance.

SEC revoked the licenses of 53 fund management companies to protect the integrity of the securities market and investors.

Disgruntled customers of BlackShield Fund Management have embarked on a series of protests to push for the government's intervention in retrieving their funds from the firm after SEC announced a bailout package for clients of the collapsed companies.

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