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Business - October 8, 2020

Banking cleanup: All depositors will be paid – SEC Boss

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Pastor Daniel Ogbarmey Tetteh, Director General of the Security and Exchange Commission (SEC), has assured that the government will resolve the claims of all affected depositors in the recent financial and investment sector clean-up operation.

According to him, of the 53 companies affected, his institution has been able to fully access the records of 40 companies, and is working hard to access the records of the other seven companies so that they can pass the liquidation process. He said that so far, liquidation orders have been issued to 22 fund managers, and procedures have been established to pay depositors for their investments.

“As of the beginning of the statutory holiday at the end of July, the court has issued 22 liquidation orders to the official liquidator. We can also fully access the records of 40 of the 47 companies because none of the three companies has made any claims. We did say that there were no claims. The government’s rescue plan will be launched in stages. Therefore, the first stage will be for companies that have a liquidation order granted by the court. The government’s rescue is for all affected investors, not just those investors who have issued a liquidation order at that time. . Therefore, it must be clear, it is only a matter of time,” he said.

In November last year, the US Securities and Exchange Commission (SEC) revoked the licenses of 53 fund managers because they failed to resolve investor claims due to liquidity challenges, while others were accused of violating industry best practices .

After discussions with the government, the General Registrar was subsequently appointed as the official liquidator to ensure that depositors whose funds were locked in the liquidation work were properly paid for the funds they invested in these fund managers.

However, the SEC boss said in an interview that so far, the liquidation process is progressing smoothly. He said that the only obstacle to delaying the procedure is the statutory holiday, and once the court resumes business, more liquidation orders will be issued.

“We have explained that after two conditions are met, a rescue plan will be launched. The time to verify your claims and approve the liquidation order. The legal leave has ended and will end in October this week, which is essential for the court’s reinstatement. Therefore, we expect that we will get more liquidation orders because they are in various stages before the legal leave. Therefore, as far as the liquidation order is concerned, when I speak, we have nothing new to report.”

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