SEC probes fund managers for $921m in risky investments

SEC probes fund managers for $921m in risky investments
Source: Bloomberg
Date: 31-07-2019 Time: 04:07:14:pm

Securities and Exchange Commission (SEC) is investigating money managers for locking up as much as 5 billion cedis ($921 million) in risky investments they’re struggling to retrieve for clients.

The funds are stuck in short-term unlisted bonds, direct private-equity stakes and related-party deals for small- and medium-sized businesses, said Paul Ababio, deputy director-general at the Securities and Exchange Commission.

With efforts to retrieve the money proving futile, the SEC is starting forensic audits to determine how to retrieve money for investors, which may include selling off the fund managers’ assets, he said.