Accra, Ghana, April 16, 2019//-The ruffling of feathers on the country’s financial sector seems far from ending with the heavy hand of the Securities and Exchange Commission (SEC) landing on the roof of Gold Coast.
The SEC effective April 15, 2019 had directed Gold Coast Fund Management Ltd (GCFM) to cease collection or receipts of new funds from the public.
In a statement the Commission brought “to the notice of clients of Gold Coast Fund Management Ltd. and the general public that it is fully aware of the plight of investors who have placed funds with the company and are unable to redeem same on maturity”.
It said, “Gold Coast Fund Management Limited has had numerous complaints lodged against it and the Commission is currently hearing these complaints in accordance with the provisions of the Securities Industry Act, 2016 (Act 929).
In view of its significant size in the Asset Management Industry, the Commission remains in constant engagement with the company with the aim of securing a sustainable solution to its liquidity challenges and the numerous complaints lodged against it.
The Commission has received proposals from Gold Coast Fund Management Ltd with the aim of resolving its obligations to its clients and investors.”
The statement pointed out that, “The SEC is presently reviewing the viability of the proposals and wishes to assure all interested parties that it is doing so in the interest of investor protection.
The Commission shall however continue to receive, hear and adjudicate complaints against Gold Coast Fund Management Ltd while investigations for any possible breaches of provisions of the Securities Industry Act, 2016 (Act 929), and its accompanying Rules and Regulations continue.
The Commission shall spare no efforts at applying regulatory sanctions against Gold Coast Fund Management Ltd if found culpable.”
It continued that, “While the Commission continues to review the proposals presented to it, the company should continue to honour its investment obligations to its clients and investors.
In the meantime, the Commission has directed Gold Coast Fund Management Ltd to cease collection or receipts of new funds or investments from the investing public until all clients and investors with outstanding matured investments have been paid or mutually agreed settlement terms reached. The Commission’s previous notices on guaranteed returns also remain fully operational”.
“The general and investing public are hereby informed to take note and act accordingly. The Commission shall continue to apprise the general and investing public on any further developments”, SEC stated.
According to the SEC the notice was issued pursuant to Sections 3(b) (e) (m), and 208 (c) of the Securities Industry Act, 2016 (Act 929).
Gold Coast Fund Management is an investment-banking firm specialised in Fund Management, Capital and Money Market, Asset Management, Equity Market Research,, Pension Advisory and Financial Advisory Services.
GCFM is a licensed Investment Advisory company regulated by the Securities and Exchange Commission.
GCFM has since incorporation in 1993, developed tailor-made investment solutions for investors at home and abroad and won several awards over the years. It has been crowned the Best Fund Manager/Investment Advisor Gold Award since 2011 to date.
A subsidiary company of Groupe Nduom, it was adjudged the Best Company of the year 2015.
Meanwhile Gold Coast Fund Management (GCFM) has welcomed the Security and Exchange Commission (SEC) engagement with the company to find a lasting solution to the liquidity crisis faced by it.
According to the Company it is optimistic that the approval of its proposal to the SEC would give their clients real value for their investment and provide a roadmap for other struggling fund management companies seeking solutions to their liquidity challenges.”
It has also disclosed that it has so far paid nearly ¢70 million to aggrieved customers and various categories of clients and has shared details of these payments with the regulator.”
It also assured that, “GCFM is one of the few if not the only fund manager to have ceased taking new deposits for its Structured Finance product from investors since October 2018, in compliance with the regulator’s directive to the fund management industry to stop offering guaranteed rates.”
By Oppong Baah, African Eye Report
