Kwame Asomaning, Board member and MD of Gold Coast Fund Management Ltd
The Securities & Exchange Commission (SEC)says it has received proposals from Gold Coast Fund Management Limited to honour its obligations to clients and investors.
SEC said it’s presently reviewing the viability of the proposals to assure all interested parties and protect the interest of investors.
“The Commission shall, however, continue to receive, hear and adjudicate complaints against Gold Coast Fund Management Ltd while investigations for any possible breaches of provisions of the Securities Industry Act, 2016 (Act 929) and its accompanying Rules and Regulations continue.
“The Commission shall spare no efforts at applying regulatory sanctions against Gold Coast Fund Management Ltd, if found culpable,” a statement issued by SEC on Monday stated.
It said Gold Coast Fund Management Ltd should continue to honour its investment obligations to its clients and investors.
It revealed that it was fully aware of the plight of investors who had placed funds with the company and were unable to redeem same on maturity.
“It was for this reason that the Commission is currently hearing such complaints in accordance with the provisions of the Securities Industry Act, 2016 (Act 929).
“In view of its significant size in the Asset Management Industry, the Commission remains in constant engagement with the company with the aim of securing a sustainable solution to its liquidity challenges and the numerous complaints lodged against it,” it added.
Meanwhile, SEC has directed Gold Coast Fund Management Ltd to cease collection or receipt of new funds or investments from the investing public until all clients and investors with outstanding matured investments have been paid or mutually agreed settlement terms reached.
Its previous notices on guaranteed returns also remained fully operational.
Gold Coast indicated that it’s collaborating with SEC to roll out the “Cardinal Fund,’ to replace its popular Structured Finance (SF) product.
“The Cardinal Fund comes with a bond and equity offer the bond portion of the fund will allow customers to continue to earn predetermined return without violating the recent directives from the commission.”
It’s set to deliver a prospectus and related documentation to the SEC by the end of April, 2019, it said.
Government owes Gold Coast
Gold Coast’s liquidity challenges result from debts owed by government contractors, who are yet to be paid by the Ministry of Finance, as well as locked up funds with other financial houses.
It said it’s working to retrieve the funds and get back to serious business.
By Samuel Boadi