The Coalition of Aggrieved Customers of the 53 Collapsed Fund management companies has called on the Securities and Exchange Commission (SEC) to rethink its decision to exclude clients of BlackShield Capital Limited from the government’s bailout package.
This comes after SEC’s disclosure that customers of Blackshield will not be benefitting from the first phase of the bailout package because the company is challenging the revocation of its license in court.
Addressing the press on the issue, spokespersons for the Coalition, Charles Nyame described the exclusion of BlackShield’s clients as mischievous and a plot to divert the public’s attention from the poor handling of the financial sector clean-up.
“We consider the reasons given by the SEC as misleading and deceptive. The government also issued a bailout to other customers of companies that are also in court to contest their revocation. It is therefore questionable how the government and SEC decided to apply the rules differently. The actions by the government and SEC are mischievous and dishonest, especially when the government is aware that the court is on legal vacation. We hereby call on the government to rethink and include all BlackShield customers in the bailout package since advancing the bailout package does not amount to any interference in the court process,” he noted.
Government will in the coming days announce a bailout package in the form of social intervention for customers whose funds were locked up in collapsed fund management firms.
Already, management of BlackShield Capital Limited is unhappy that its customers will not benefit from the bailout package.
It argues that this is yet another attempt to mislead the public into blaming BlackShield for SEC’s failures.
A statement issued by the Management of BlackShield stated that, “It is noteworthy, that the SEC, refused BlackShield’s application to cease executing the order of revocation pending the hearing of its complaint.”
“The SEC disregarded this application by BlackShield and proceeded to deal with the assets of BlackShield despite the hearing. It is therefore surprising that the SEC would use the pendency of the same matter as an excuse to perform a duty which BlackShield has always supported and encouraged the SEC to do.”
On the issue of validation, the management of BlackShield Capital Limited described as false allegations that it has been unable to validate clients of the company owing to partial access to records of BlackShield and provision of 3% of records.
“SEC has had full access to the client’s information at least on three different occasions between 2019 till date,” the statement noted.
