No need for panic withdrawals – SEC to Customers of Fund Management Companies

The Securities and Exchange Commission (SEC) has advised the general public to “remain calm” and not rush to withdraw their funds from fund management companies in good standing.

The Securities and Exchange Commission today, Friday, November 8, 2019, revoked the licenses of 53 Fund Management Companies.

The SEC in a statement explained that the revocation follows the failure of the affected companies to “return client funds which remain locked up and in a number of cases, have even folded up their operations.”

SEC in the statement also asked customers in a statement not to engage in panic withdrawals but rather educate themselves and do the needful.

“In the interim we urge all investors to remain calm, gather all receipts, statements and any other documentation related to their investment with the affected institutions. There is also no need for any panic withdrawals on the firms whose licenses are intact and not on the revocation list. A list of firms whose licenses have not been revoked can be found on the SEC website (www.sec.gov.gh)”.

The statement further indicated that the procedures for validation of claims would be available by Monday, 11th November 2019.

“By the close of business on Monday the 11th of November 2019, SEC, together with its authorized agent, will provide further details about the validation process and specific locations where investors can present their claims to be validated.”

The actions were taken pursuant to Section 122 (2) (b) of the Securities Industry Act, 2019 (Act 929) which authorizes SEC to revoke the license of a market operator under some circumstances.

SEC also explained that the revocation is “in accordance with its mandate of protecting investors and the integrity of the capital market.”

SEC and its authorized agents will secure the premises of the affected companies for further investigations under section 26 of the Act.