Investors impacted by the revocation of licenses for fund management companies in November 2019 are expected to see their accounts credited by the end of this month.
This development follows the government’s recent approval of a GH¢1.5 billion bailout package, facilitated by the Securities and Exchange Commission (SEC). The funds will be distributed in multiple phases, with GH¢700 million released in August 2024 and subsequent amounts of GH¢400 million each in October and December 2024.
As reported by Citi Business News, this progress comes after discussions between the lead fund manager, GCB Capital, and investors regarding the implementation plan for the initial tranche of GH¢700 million. The final terms outlined in the agreement are anticipated to be finalized by the end of September.
During these discussions, significant attention was given to ensuring that affected customers of the failed fund management firms can easily access the funds. Consequently, all investors with outstanding balances will be compensated on a pro-rata basis to provide financial relief after their investments were frozen due to the cleanup effort initiated in November 2019.
The Securities and Exchange Commission of Ghana previously indicated that investors will receive either GH¢50,000 or 15% of their outstanding balance in this phase. Specifically, those with outstanding amounts of GH¢20,000 and below will receive their full funds by the end of this month (September 2024).
For customers with balances of GH¢100,000, they will receive GH¢50,000, while those with remaining amounts of GH¢500,000 will get GH¢75,000 as part of the bailout. Customers with larger balances, such as GH¢1 million and GH¢5 million, will receive GH¢150,000 and GH¢750,000, respectively.