Government has approved the release of GH¢1.5 billion to bail out affected investors of defunct fund management companies, the Securities and Exchange Commission (SEC) announced today.
Under this current release, investors will receive the higher of GH¢50,000 or 15 percent of their outstanding examined claims on the defunct firms.
This top-up is estimated to result in close to 91 percent of affected investors being fully settled.
This bailout will be rolled out through the Special Purpose Vehicle, Amalgamated Mutual Fund (AM Fund) managed by GCB Capital Ltd.
The managers of AM Fund will hold a meeting in the coming days to provide guidance for those who would want to access the released funds as well as the prospects for leaving the claims in the AM Fund to be managed.
Government releases GH¢1.5 billion to affected investors
The bailout package, which is in addition to the GH¢4.46 billion previously released, aims to provide financial relief to thousands of investors who lost money in the 2019 fund management industry license revocation exercise.
According to the SEC, the GH¢1.5 billion will be released in three tranches, with the first tranche of GH¢700 million to be disbursed in August 2024, followed by GHS 400 million each in October and December 2024.
“This decision, driven by humanitarian considerations, will provide further financial relief to those impacted by the revocation,” said the SEC in a statement.
The bailout covers investors with examined claims who have accepted the government’s bailout package, including those who invested in Blackshield Capital Management Limited (formerly Gold Coast Fund Management Limited) and Kron Capital Limited.
Affected investors can visit the bailout portal ((link unavailable)) for more information or contact the SEC.
This move is seen as a significant step towards restoring confidence in Ghana’s securities market and protecting investor interests.
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