‘We stopped taking new deposits in 2018’ – Gold Coast responds to SEC

‘We stopped taking new deposits in 2018’ – Gold Coast responds to SEC

The Gold Coast Fund Management (GCFM) has revealed that, it ceased taking new deposits for its Structured Finance product from investors since October

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The Gold Coast Fund Management (GCFM) has revealed that, it ceased taking new deposits for its Structured Finance product from investors since October 2018, in compliance with the regulator’s directive to the fund management industry to stop offering guaranteed rates.

This comes as a response to the directive by the Securities and Exchange Commission (SEC) to the GCFM to cease collection or receipts of new deposits from the public until all clients and investors with outstanding matured investments have been paid or mutually agreed settlement terms reached.

SEC in a statement said it “is fully aware of the plight of investors who have placed funds with the company and are unable to redeem same on maturity.”

The Commission further noted it has received and started reviewing proposals from GCFM on how they intend to meet payment obligations to their customers and investors.

“The Commission is presently reviewing the viability and soundness of the proposals and wishes to assure all interested parties that it is doing so only in the interest of investor protection,” the SEC stated.

But the GCFM in reaction said it “is one of the few if not the only fund manager to have ceased taking new deposits for its Structured Finance product from investors since October 2018, in compliance with the regulator’s directive to the fund management industry to stop offering guaranteed rates.”

The GCFM, however, says it welcomes moves by the Security and Exchange Commission (SEC) to restore investor confidence by engaging with the company to find a lasting solution to its liquidity crisis.

Gold Coast further expressed optimism that the approval of its proposal would give clients real value for their investment and provide a roadmap for other struggling fund management companies seeking solutions to their liquidity challenges.

General Manager, External Affairs and Investor Relations, Benjamin Afreh said, “We submitted Cardinal Offer as an investment option to our Structured Finance Product. We believe the Cardinal Offer will give our customers real value for their investment while helping to mitigate our liquidity challenges.”

He added that “The Cardinal Offer will be a medium to long term, liquid and value enhancing product. It will be made up of a bond and an equity offer. The bond portion of the fund will allow customers to continue to earn a predetermined return without violating the recent directives from the commission. By this, we are offering a solution to the SEC directive by leveraging on this investment asset.”

Meanwhile, the troubled fund management company, says it has so far paid nearly GHC70 million to aggrieved customers and various categories of clients and has shared details of these payments with the regulator.

The company assures that firm and urgent steps are being taking to recover investments placed with other financial institutions and government infrastructure products.

It encouraged government agencies to pay contractors for work done so as to restore normal operations for GCFM.

By: Kekeli Kuatsenu/awakenewsroom.com