Cash Bailout For FMC Clients Begins

The Securities and Exchange Commission (SEC) has announced that payment processes for the government partial bailout for all clients of the remaining affected fund management companies (FMCs) whose licences were revoked has begun in line with its earlier public notice on November 18, 2020.

According to SEC, the partial cash bailout which involves a payment of up to GH¢50,000 will cover all clients of the remaining affected FMCs, including customers of Gold Coast Fund Management Limited (now Blackshield Fund Management Company Limited).

In a statement released to the media, the SEC said the move was in line with its mandate of protecting investors and the integrity of the securities market.

“In the end, the partial bailout being offered would result in 89% of individuals and 82% of pensioners being fully covered,” the statement indicated.

It added that validated claims in excess of this partial cash payout amount would be covered after the liquidation proceedings in court, in line with the terms being applied under the bailout package for the clients of the FMC currently undergoing liquidation proceedings.

“The SEC wishes to inform the investing public that a large number of affected clients have been sent SMS messages containing the value of their validated claims with outstanding customers to be covered shortly,” the statement noted and continued that interested claimants must now follow three simple steps (reduced from six steps) “outlined in appendix 1 to access the partial bailout in cash.”

According to SEC, the over 10,000 clients who have already completed step one will be contacted shortly to complete the last two steps to conveniently access their payment of up to GH¢50,000.

“Clients with validated claims in excess of GH¢50,000 can also opt to wait for the conclusion of the liquidation processes in court to access the full bailout package.”

For the avoidance of doubt, the SEC statement intimated that the partial bailout of GH¢50,000 would be paid as cash into the bank accounts that would be opened at GCB for each client.

“Clients will therefore be able to withdraw cash as soon as their accounts are activated as outlined in Appendix 1.”

“The SEC therefore appeals to all affected clients who opt for the partial bailout package to patiently follow through with all the processes and rely only on information provided by the SEC on the process. Clients who are yet to receive their Claim IDs are advised not to panic as the SMS is being dispatched in batches,” the statement said and added that the government was committed to follow through with its bailout package for all validated claims.

It wants people who want further information on the bailout to call the dedicated bailout call centre on 055 356 4472 /024 243 9453 or send an email to [email protected] pwe.com

“Alternatively, customers may visit www.bailout.rgd.gov.gh for the latest updates on the bailout situation. This Press Release is issued pursuant to section 208(c) of the Securities Industry Act, 2016 (Act 929),” it stated.

 

By Ernest Kofi Adu

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