SEC to pay locked-up funds to customers of 22 firms in September

The payment of locked-up funds to customers of these institutions is to bring closure to the financial sector clean-up that started in 2017

The Securities and Exchange Commission (SEC) says it will commence payment of customers’ locked-up investments from September this year.

The SEC said this will cover 22 financial institutions for which it has been able to validate the claims of depositors.

“Out of the 50 companies whose licences remain revoked, three did not have any claims filed against them, leaving 47 companies against whom claims were filed by affected clients,” the SEC said in a statement.

“As at 26 August 2020, a total of 98,820 claims valued at ¢10.83 billion have been received. The Commission has full access to the records of 40 of these companies, partial access to one company and no access to the remaining six companies.”

SEC added that validation of the claims filed by the clients of the 40 collapsed financial institutions “where we have full access to their records has been completed”.

No access to data

The SEC said it does not have access to the records of six companies: Firstbanc Financial Services, Kripa Capital, EM Capital, Omega Capital, Nickel Keynesbury and Heritage Securities (Future PIP Management Ltd.).

“Validation of claims on Firstbanc Financial Services Limited is yet to commence because of their initial failure to c-ooperate with SEC and the filing of an application for an injunction pending appeal at the High Court,” the Commission said.

“Claims filed against Firstbanc Financial Services Limited was 423 valued at ¢800 million. We are in the process of resolving the issues to get full access to the records of the remaining five firms. The claims filed against these five firms is 489 valued at ¢87 million.”

Partial access

The Commission said it had partial access to records from Blackshield Capital Management Ltd (formerly Gold Coast Fund Management Ltd), as the company provided Excel data representing roughly 3% of claims filed by their clients.

SEC said Blackshield Capital Management Ltd initially failed to assist in locating the server for validating the remaining 97% of claims until the intervention of law-enforcement agencies.

The claims filed against Blackshield Capital Management Ltd totalled 82,204 and were valued at ¢4.65 billion.

Read SEC’s full statement here.

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