The Securities and Exchange Commission (SEC) has announced the release of GHS 1.5 billion to compensate investors affected by the 2019 revocation of fund management licenses. This additional funding will be disbursed in three phases: GHS 700 million in August 2024, followed by GHS 400 million each in October and December, according to a statement from the SEC on Thursday, September 12.
The bailout is part of ongoing efforts to provide financial relief to investors impacted by the collapse of fund management firms, including Blackshield Capital Management (formerly Gold Coast Fund Management) and Kron Capital. Previously, GHS 4.46 billion was distributed to investors with validated claims, benefiting 84,202 investors, with 82% of claims fully settled.
Under this new package, investors will receive the higher of GHS 50,000 or 15% of their outstanding claims. The SEC anticipates that this payout will lead to close to 91% of all investors being fully compensated. The funds will be distributed through the Amalgamated Mutual Fund (AM Fund), managed by GCB Capital Ltd.
The SEC added that AM Fund managers will soon consult with investors to provide guidance on accessing the new funds and offer options for those who may wish to retain their claims within the AM Fund for future management.
