The Director General of the Securities and Exchange Commission (SEC), Dr. James Klutse Avedzi, has revealed that the government requires GH₵4.3 billion to fully settle outstanding claims of customers of defunct fund management firms.
According to him, this is the remaining amount needed after the government disbursed GH₵5 billion to compensate some affected customers.
Dr. Avedzi made this disclosure on PM Express Business Edition with host George Wiafe on March 27, 2025.
He explained that delays in settling claims were partly due to legal challenges from some fund management firms, including Blackshield Capital, which contested their liquidation process in court.
Beneficiaries
Dr. Avedzi further revealed that out of 108,000 investors identified during the audit, 80,000 have so far received full payments. He assured that the government is working to clear the remaining claims.
Background
In 2019, the SEC revoked the licenses of 53 fund management firms as part of efforts to safeguard the integrity of the securities market and protect investors.
Some of the affected firms included All Time Capital Limited, Apex Capital Partners, Axe Capital Limited (formerly United Asset Management), Intermarket Asset Management Limited (formerly CDH Asset Management), and Blackshield Capital Management (formerly Gold Coast Fund Management).
According to the SEC, these firms collectively managed at least 56,000 investors and held a combined asset base of GH₵8 billion.
Bailout for Investors
In 2024, the government announced a GH₵1.5 billion bailout for investors of the collapsed fund management firms. Under this arrangement, affected investors received either GH₵50,000 or 15% of their outstanding claims.
This partial bailout covered clients of all affected firms, including customers of Blackshield Fund Management. It resulted in 89% of individual investors and 82% of pensioners being fully compensated.
Additionally, GH₵700 million was disbursed through GCB Capital to facilitate payments to investors.
Status of Bailout Payment
Dr. Avedzi noted that while the 2025 Budget did not include provisions for the remaining payments, he remains hopeful that funds could be secured during the Mid-Year Budget Review.
“The government is committed to settling these payments due to their impact on market confidence,” he assured.
He also warned that SEC would take decisive action against any fund management company that fails to comply with market regulations.
“We don’t want a repeat of the circumstances that led to the liquidation of some fund management firms,” he emphasized.
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