SEC revokes licenses of 53 Fund Management Companies
The Securities and Exchange Commission (SEC) has, with effect from Friday, November 8, revoked the licences of Fifty-Three (53) Fund Management Companies.
The actions were taken pursuant to Section 122 (2) (b) of the Securities Industry Act, 2016 (Act 929 or “the Act”), which authorises the Securities and Exchange Commission to revoke the license of a market operator. “
The revocation of the licences of the specified companies has become necessary as they have largely failed to return client funds, which remain locked up and in a number of cases, they have even folded up their operations.
Essentially, they have failed to perform their functions efficiently, honestly and fairly and in some cases are in continuing breach of the requirements under relevant securities laws, rules or conditions, despite opportunities provided to them by the SEC within a reasonable period of time to resolve all regulatory breaches. “
A statement from the Commission and copied to the Ghana News Agency named the companies as; Alpha Cap Limited, Beige Capital Asset Management Limited, Cambridge Capital Advisors Limited, EM Capital Limited, Energy Investments Limited, Fromfrom Capital Limited, Gold Rock Capital Management Limited, Heritage Securities Limited (formerly Futurepip Asset Management, Kamaag Kapital Limited (formerly Lifeline Asset Management, Kron Capital Limited, Mak Asset Limited, Man Capital Partners Limited, Mcottley Capital Limited, Mec-Ellis Investments (Ghana) Limited, Nickel Keynesbury Limited and SG Royal Kapita Limited.
Others are; Standard Securities Limited (formerly ASN Investments Limited, Tikowire Capital Limited, Ultimate Trust Fund Management Limited, Universal Capital Management Limited and Weston Capital Limited.
The statement also mentioned names of fund managers whose licenses were revoked as; All time Capital Limited, Apex Capital Partners, Axe Capital Limited ( Formerly United Asset Management, Blackshield Capital Management (formerly Gold Coast Fund Management, Brooks Asset Management Limited, Canal Capital Limited, Corporate Hills Investment Limited, Dowjays Investment Limited, Firstbanc Financial Services Limited, Frontline Capital Advisors Limited, Galaxy Capital Limited Others are; Global Investment Bankers Limited, Goldstreet Fund Management Limited (formerly Goldstreet Investment Limited, Ideal Capital Partners Limited, Intermarket Asset Management Limited (formerly CDH Asset Management), Integrity Fund Management Limited, Kripa Capital Limited, Legacy Fund Management Limited (formerly Legacy Financial Services Limited ), Liberty Asset Management Limited and Monarch Capital Limited.
The rest are; Mutual Integrity Asset Management Limited, Nesst Capital Limited, Nordea Capital Limited, Omega Capital Limited, Procap Finance Limited, QFS Securities Limited, Sirius Capital Limited, Strategic Hedge Capital Limited, Supreme Trust Capital Limited, Unisecurities Ghana Limited, Utrak Capital Management Limited and Wealth Vision Financial Services Limited.
The statement said the authorised agent of SEC (and the Liquidator once appointed) would work together with the government to pay a capped amount to all affected investors of the firms in line with government’s commitment to support the securities industry and to provide some immediate relief to investors who were hurting because of their locked-up funds.
It said the outcome of the court process would inform the handling of assets retrieval and liquidation to further sort out validated investor claims.
“By the close of business on Monday the 11th of November 2019, SEC, together with its authorised agent, will provide further details about the validation process and specific locations, where investors can present their claims to be validated.
“In the interim we urge all investors to remain calm, gather all receipts, statements and any other documentation related to their investment with the affected institutions,” the statement said.
BY TIMES REPORTER
