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No Bailouts For First Fund, Heritage Fund, Gold Money Market Fund, Gold Fund Unit Trust And Others

The Securities and Exchange Commission has laid the gauntlet once more that Collective Investment Schemes (CIS) are not part of the bailout process being dolled out by authorities.

The Director General of SEC, Rev. Alfred Ogbamey stated this in the meet the press session organised today 30th April 2021 on their Facebook platform.

Speaking on issues relating to the bailout process among other issues, the Director of Securities and Exchange Commission stated categorically that Collective Investment Schemes are not part of the ongoing bailout process.

He advised shareholders in mutual funds and equity funds to liaise with their board members and their respective newly appointed fund managers for further details on their payments.

He stated that aggrieved customers of collective investment schemes must be patient while their various boards and fund managers look for funds in the case of illiquid funds such as First Fund, Heritage Fund, Gold Money Market Fund, Gold Fund Unit Trust etc to honor their redemptions.

Based on the statement from the Director of SEC, investors in First Fund and others must brace themselves for the long term because it has been more than two years since all those 18 funds became non-liquid.

Investors have suffered all this while in quietude and the SEC is saying they will have to suffer some more with patience for their boards who failed the investors leading to the funds being illiquid to make the said funds liquid before they can redeem their moneys.

The director however said that investors who paid their monies directly to fund managers for fixed deposits are the ones covered by the bailouts. This is very interesting.

It must tell all investors in mutual funds, equity funds and other Collective Investment Schemes that your funds are not safe in case your firm collapses. At the very least, you will wait for a very long time while the value of your money depreciates.

Indeed Collective Investment Schemes are entities formed by law and their operations are quite different yet many will think the SEC will look at the plight of investors in these instruments and do good by them.

Two good years without any redemptions or interests payments or interest accruing on the invested funds and the regulator sees nothing wrong with this.

If investors in collective investment schemes do not do the needful just like fixed deposits aggrieved investors did, their moneys will be long in coming.

For me, investing in mutual funds and equity funds from now on is a big no because there is no promptness in case the finance house goes down or the fund manager misappropriate the funds.

Below is the link to the press session.

Content created and supplied by: kojo-vivify (via Opera News )

Alfred Ogbamey Gold Gold Fund Unit Trust Gold Money Market Fund SEC


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