The Akufo-Addo government has said it has committed an amount of GH¢3.1 billion “toward supporting investors in failed asset management companies regulated by the Securities and Exchange Commission (SEC)”.
On 8 November 2019, SEC revoked the licenses of 53 Fund Management pursuant to Section 122 (2) (b) of the Securities Industry Act, 2019 (Act 929), which authorises SEC to revoke the licence of a market operator under some circumstances.
SEC, in a statement, explained that the revocation followed the companies’ failure to “return client funds which remain locked up and in a number of cases, have even folded up their operations.”
The full list of the affected institutions at the time:
1. All-Time Capital Partners Limited
2. Alpha Cap Securities Limited
3. Axe Capital Advisors Limited
4. Apex Capital Partners Revoked
5. Beige Capital Limited Revoked
6. Brooks Asset Management Limited
7. Cambridge Capital Advisors Limited
8. Canal Capital Limited Revoked
9. Corporate Hills Investment Ltd.
10. Dowjays Investment Limited
11. EM Capital Limited Revoked
12. Energy Investments Limited
13. Fromfrom Capital Limited
14. Frontline Capital Advisors Limited
15. FirstBanc Financial Services Limited
16. Galaxy Capital Limited
17. Gold Coast Fund Management Limited
18. Gold Rock Capital Management Limited
19. Goldstreet Fund Management Limited
20. Global Investments Bankers Limited
21. Heritage Securities Limited
22. Ideal Capital Partners Limited
23. Integrity Fund Management Limited
24. Intermarket Asset Management Ltd
25. Kripa Capital Ltd.
26. Kron Capital Limited
27. Legacy Financial Services
28. Liberty Asset Management Limited
29. Kamag Kapital Limited
30. Mak Asset Management Limited
31. Man Capital Partners Limited
32. Mec-Ellis Investment(Ghana) Limited
33. McOttley Capital Limited
34. Monarch Capital Limited
35. Mutual Integrity Assets Management Limited
36. Nesst Capital Limited
37. Nickel Keynesbury Limited
38. Nordea Capital Limited
39. Omega Capital Limited
40. Procap Finance Company Limited
41. QFS Securities Limited
42. SGL Royal Kapita Limited
43. Sirius Capital Limited
44. Strategic Hedge Capital Limited
45. Standard Securities Limited
46. Supreme Trust Capital Limited
47. Tikowrie Capital Ltd.
48. Unisecurities Limited
49. Universal Capital Management
50. Ultimate Trust Fund Management Ltd.
51. Utrak Capital Management Limited
52. Wealth Vision Financial Services Limited
53. Weston Capital Limited
1. HFC Capital Partners Limited
2. Attai Capital Limited
3. Serengeti Capital Limited
4. Indigo Investment Management Limited
5. Verit Investment Advisory Limited
In its recently-launched 2020 manifesto, the governing party said those who invested in the collapsed asset management companies will be given monetary support.
Also, the NPP said as of the end of the first quarter of 2020, a total amount of GH¢13.6 billion has been spent on the resolution of failed banks, Specialised Deposit-taking Institutions (SDIs), Micro Finance Institutions (MFIs), the establishment of the Consolidated Bank Ghana Limited (CBG), as well as the capitalisation of the Ghana Amalgamated Trust (GAT).
“Additionally, with the President’s directives to pay fully all depositors whose funds were locked up with the failed SDIs and MFIs, an amount of GH¢5 billion was spent. This brings the total expenditure on financial sector interventions as at June 2020 to GH¢18.6 billion”.
In addition to the GH¢3.1 billion support to investors who fell victim to the collapse of the fund management companies, the total amount used by the government to clean the financial sector would be GH¢21.60 billion.
The NPP said it “inherited a weak and fragile financial services sector from the Mahama-led NDC Government. Many financial institutions had either collapsed or were on the verge of collapse”.