The Official Liquidator of Fund Management Companies, the Registrar-General has started paying off the bailout funds of the first batch of investors.

This comes after the successful validation of claims and the completion of creditor meetings of the Registrar-General with investors of the first 20 Fund Management Companies.

This was contained in a document signed by the Registrar General, Jemima Oware.

“These investors were clients of the 20 Fund Management Companies for which Liquidation Orders have been obtained and gazetted by the Official Liquidator, and whose claims were also validated by PWC, External Auditors of the Official Liquidator,” the statement read.

According to the statement, all 170 investors who had submitted redemption requests by on Wednesday October 7, 2020 make up the first installment of beneficiaries.

Mrs Jemima Oware noted that the process will continue as long as the court grants the winding up orders and the claims of the creditors are validated.

Meanwhile, the all investors who have gone through validation and have received their unique Claim I.D.'s are advised to visit bailoutapp.rgd.gov.gh to go through the account set up.

This is because the application on the www.rqd.qov.qh website is also down as a result of a temporary technical challenge at National Information Technology Authority (NlTA).

The establishment of the Fund paves way for claims of over 2,850 investors amounting to ¢563.65 million to be accessed.

These payments are under government’s bailout package for customers of liquidated Fund Management Companies who choose to accept this option2

The bailout program is being implemented via a special purpose entity, the Amalgamated Mutual Fund Plc (The AM Fund) which was established and managed by GCB Capital Limited.

Background

The Securities and Exchange Commission in November 2019 revoked the licenses of 53 fund management firms for not operating in conformity with the industry’s best practices and standards, among others.

This came at a time where some fund management firms were struggling to settle their investors' claims due to liquidity challenges.

The SEC began discussions with the government to find an appropriate bailout programme for the investors whose funds were locked-up.

The Registrar General was subsequently appointed as the Official Liquidator of the defunct Fund Management Companies.

Later, some of the liquidated firms sought to challenge the process established by the SEC.