The Securities and Exchange Commission (SEC) says, 3 of the 53 companies whose licenses were revoked have been restored.
SEC on November 8, 2019, revoked the licences of 53 Fund Management Companies for several infractions as well as being insolvent.
The revocations were done pursuant to Section 122 (2) (b) of the Securities Industry Act, 2019 (Act 929) which authorizes SEC to revoke the licence of a market operator under certain circumstances.
The licenses of these institutions had to be revoked because they were insolvent even after they were given a reasonable period of time to recapitalize.
According to the Director-General of the Security and Exchange Commission, Reverend Daniel Ogbarmey Tetteh, 3 of the 8 financial institutions who sought redress through the administrative hearing committee of SEC were successful.
“There is a provision in our Securities Industry ACT 929, 2016 which allows market operators to file appeals through the administrative hearing committee. 8 of the companies whose licenses were revoked applied and in pursuant of natural justice had to be given a hearing. 5 of the companies were not successful, 3 were, so we now have 50 companies.”
He added that customers of the three companies are now excluded from the bailout package and can access their funds directly from the various institutions.
“Clients of the 5 who were unsuccessful will still have to go through the bailout packages. Clients of the three that were successful however are out of the bailout structure.”