The Security and Exchange Commission (SEC) says it will pursue the interest of licensed asset management firms with legally proven locked up funds in some microfinance and savings and loans firms, which have run into financial difficulty.
The Director-General of the SEC, Daniel Ogbarmey Tetteh, said the situation of counterparty default risk had impaired the liquidity assets of some fund managers.
Rev Obgarmey Tetteh was speaking in a media interview about fund managers, such as Gold Coast, who are facing liquidity challenges and have blamed the situation on counterparty default.
“The BoG and Ministry of Finance have given some indication that they’ll be having some kind of intervention for the distressed microfinance, savings and loans like they did for the banks,” he explained.
“The SEC has started engaging with the Ministry and BOG in this process so we can assist our licensed operators who have been affected by counterparty defaults to redeem their locked-up funds.
“Provided our licensed operators, who are exposed to these distressed companies provide solid evidence, submit all documents and can ascertain their claims, when the bailout occurs, they’ll definitely be paid their money,” he added.
Such fund managers, he explained, were unable to readily redeem their investments from these ailing firms; hence they faced a problem of cash flow, which was hindering their inability to meet the payment obligation of their clients.Read Full Story