The Registrar General has finally begun paying investors of liquidated Fund Management firms, whose funds have been locked up for a while.
Joy Business understands that the payment begun yesterday with the funds hitting accounts of some of the respective investors.
Sources say those who are 60 years will get a minimum of GHS70,000, while those above 60 years would get all their payments under Tier One, which has to do with cash payment.
All faith based organizations, schools and hospitals will get all their claims.
On the other hand, Financial Institutions and Credit Unions will get 50% of their locked-up funds validated under the Tier 1 category and the rest put into an investment fund.
Government will settle all investors’ locked-up funds
Director General of the Securities and Exchange Commission (SEC), Reverend Daniel Ogbarmey Tetteh has assured all that government will settle the claims of all affected depositors in the recent clean-up exercise of the financial investment sector.
According to him, out of the 53 affected firms, his outfit has been able to access fully the records of 40, and is working to access the records of a further seven in order to take them through the liquidation process.
He said so far, liquidation orders have been granted to 22 fund managers and processes are in place to pay depositors their investment.
“As at the end of July when the legal vacation kicked in, the court had granted the official liquidator 22 liquidation orders and we also had full access to the records of 40 out of 47 of the firms because three did not have any claims filed and we did say that there is a government bailout and it will be rolled out in phases.
“So the phase one will be the firms that the court had granted the liquidation order. Government bailout is for all affected investors and not for only those that liquidation orders have been granted at the time. So that clarity has to be there and it is just a question of time,” he said.
Revocation of licenses of 53 fund managers
In November last year, the SEC revoked the licenses of 53 fund managers for failing to settle investors claims due to liquidity challenges, while some were indicted for not operating in conformity with the industry’s best practices.