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.
Here Is All You Need To Know
- 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.
Will The Fund Investors Be Able To Recover Their Investments In The Funds?
According to SEC, a liquidator will work with the Ghanaian government to pay a capped amount to all affected investors to provide some relief. The court will decide issues of assets retrieval and liquidation. 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.
In pursaunce of the above, SEC has also disclosed that in accordance with Section 26 of Act 929, it has appointed an Agent to support in the closing down, securing the premises and records of these institutions.
So most definitely, investors should be able to invoke the provisions of the law to recover their funds.
Click here to see a mapped branch network of CBG branches to the offices of the affected Fund Management companies.
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