Ghana ’s Securities and Exchange Commission (SEC) has published a list of 18 Collective Investment Schemes (CIS) in the form of Mutual Funds or Unit Trusts which have not been affected by the revocation of the licences of their respective fund managers.
Here Is All You Need To Know
- A press release issued by the SEC said the revocation of the licences of the Fund Managers neither affects the valid licences of nor terminates the Mutual Funds and Unit Trusts that they used to manage.
- According to the release, shareholders and unitholders of these Mutual Funds and Unit Trusts are therefore not included in the ongoing submission of claims process at branches of Consolidated Bank Ghana Limited (CBG).
- Total number of CIS affected is 18; made up of 13 mutual funds and 5 unit trusts as listed below;
Recovering Funds From Revoked Licenses
For those having their funds in 53 fund management companies whose operational licenses were recently revoked by Ghana ’s Securities And Exchange Commission, the process of recovering their funds in those funds have commenced. To that effect, the country’s Security and Exchanges Commission (SEC) has selected the Consolidated Bank of Ghana Limited (CBG) as a validation point for customers of 53 defunct Fund Management Companies.
“Effective Monday, November 18, the branches of Consolidated Bank of Ghana Limited (CBG) will open to receive from clients of the affected Funds Management Companies, evidence of investment claims such as investment certificates, account statements, receipts and other relevant documentation for validation,” the Commission said in a release.
- According to SEC, the offices of the affected Funds Management Companies will, however, remain closed until further notice.
“We will issue further notice on commencement of payment to investors whose claims have been validated. Investors are advised to visit the designated CBG branches assigned to the affected FMCs for repayment of investments made and any other enquiries relating to the revocation of their affected FMCs.
Under Section 122 of Ghana’s Securities Industry Act, the license of any person dealing in securities may be revoked if it wounds up. Once the license is revoked by SEC, the revocation takes effect from the date the revocation order was made by SEC. However, no such revocation shall operate to avoid or affect an agreement, transaction or arrangement relating to the trading in securities ( funds, also included) entered into by that person, whether the agreement or transaction or arrangement was entered into before or after the revocation of the license, neither does the revocation affect a right, obligation or liability under an agreement, transaction or arrangement.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world