The Securities and Exchange Commission (SEC) has instructed Gold Coast Fund Management Limited to stop accepting investments from the public for any of its investment packages.
The regulator took the decision after receiving complaints from several clients concerning their locked-up funds at the investment firm, a subsidiary of Groupe Nduom, Chaired by businessman and politician Dr Papa Kwesi Nduom.
SEC pointed out that until all payments due clients are paid, Gold Coast should cease all investment activities.
“In the meantime, the Commission has directed Gold Coast Fund Management Ltd. to cease collection or receipts 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,” a press statement issued on Monday, 15 April 2019, noted.
Hundreds of customers spread across the country have embarked on several protests at various branches of Gold Coast in order to compel the company to pay them their investments.
However, Dr Nduom said in February that the company has paid nearly GHS60 million to its aggrieved customers and payments continue to be made. He appealed to the clients to exercise patience as the firm rolls out a new policy to address their grievances.
In its statement, SEC said it has received proposals from the investment firm and currently “assessing the viability of the proposals and wishes to assure all interested parties that it is doing so in the interest of investor protection”.
SEC added that it will not hesitate to sanction Gold Coast if it emerges that regulations have been flouted.
“The Commission shall spare no efforts at applying regulatory sanctions against Gold Coast Fund Management Ltd if found culpable”.
Below is the full statement:
PUBLIC NOTICE ON GOLD COAST FUND MANAGEMENT LTD. SEC/PN/004/04/2019
The Securities and Exchange Commission wishes to bring to the notice of clients of Gold Coast Fund Management Ltd and the general public that it is fully aware of the plight of investors who have placed funds with the company and are unable to redeem same on maturity.
Gold Coast Fund Management Limited has had numerous complaints lodged against it and the Commission is currently hearing these 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. The Commission has received proposals from Gold Coast Fund Management Ltd with the aim of resolving its obligations to its clients and investors.
The SEC is presently reviewing the viability of the proposals and wishes to assure all interested parties that it is doing so in the interest of investor protection. 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.
While the Commission continues to review the proposals presented to it, the company should continue to honour its investment obligations to its clients and investors. In the meantime, the Commission has directed Gold Coast Fund Management Ltd to cease collection or receipts 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. The Commission’s previous notices on guaranteed returns also remain fully operational. The general and investing public are hereby informed to take note and act accordingly.
The Commission shall continue to apprise the general and investing public on any further developments.
The general public is also advised to contact the Commission on its Toll free number:
0800-100-065 or main line: 0302768970-2 for any further clarification.
This Notice is issued pursuant to Sections 3(b) (e) (m), and 208 (c) of the Securities Industry Act, 2016 (Act 929).
BY ORDER OF THE
SECURITIES AND EXCHANGE COMMISSION
Dated the 15th Day of April, 2019
ClassFM
