The Director General of the Securities and Exchange Commission (SEC) Dr.  James Kluste Avedzi has revealed that government needs GH₵4.3 billion to settle all claims of investors of defunct fund management firms.

He explained that this is the remaining funds needed, after government released GH₵5 billion to settle the claims of investors of the fund management firms.

Dr. Avedzi disclosed this on PM EXPRESS BUSINESS EDITION, with host George Wiafe on March 27, 2025.

“The decision of some two fund management firms, including Blackshield Capital to challenge their liquidation process in court had slowed the process”, he added.

Beneficiaries

Dr. Avedzi also revealed that out of 108,000 investors who were identified during the audit, 80,000 have so far received all their claims, adding that “government is working to clear the remaining claims”.

Background

The SEC in 2019, announced the revocation of licenses of 53 fund managing firms in the country.

The revocation of the licences, according SEC is to protect the integrity of the securities market and investors

Some of the firms that had their licenses revoked, include: All time Capital Limited, Apex Capital Partners, Axe Capital Limited (Formerly United Asset Management, Intermarket Asset Management Limited (formerly CDH Asset Management) and Black shield Capital Management (formerly Gold Coast Fund Management).

The firms are among 32 operating companies whose licences were revoked.

According to SEC, the firms with licenses revoked controlled at least 56,000 investors with a combined asset of GH₵8 billion

Bailout for investors

Government in 2024 announced the release of GH₵1.5 billion as bailout for investors of defunct fund management companies.

Under the arrangement, investors received GH¢50,000 or 15 percent of their outstanding examined claims on the defunct firms. 

It covered all clients of the remaining affected fund management companies including customers of Gold Coast Fund Management Limited (now Blackshield Fund Management Company Limited).

In the end, the partial bailout being offered resulted in 89% of individuals and 82% of pensioners being fully covered.

Already, GH₵700 million has been released through GCB Capital to pay investors their claims.

Status of Bailout Payment

 Dr. Avedzi noted that government has indicated its preparedness to settle the remaining funds to the investors.

 “There wasn’t any provision in the 2025 Budget, however I am hoping that something could be secured in the Mid-Year Review of Estimates to take care of this challenge”, he said.

He said “government is committed to making the payments, because of its impact on market confidence”.

“We will not hesitate to clamp down on any Fund Management company that fails to comply with the Market rules”, he warned.

“We don’t want to get back to what led to the liquidation of some fund management firms”, he said.