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Our clients must also benefit from bailout package – BlackShield Capital Limited

The Management of BlackShield Capital Limited is unhappy that its clients will not benefit from the government’s bailout package for customers of the 53 defunct Fund Management Companies (FMCs).

Government will in the coming days announce a bailout package in the form of social intervention for customers whose funds were locked up in collapsed fund management firms.

But the Securities and Exchanges Commission (SEC) says clients of Blackshield and three other firms will not be part of the package.

According to the SEC, the decision has become necessary because the company in question are challenging the revocation of their licenses in court.

But Management of BlackShield argues that this is yet another attempt to mislead the public into blaming BlackShield for SEC’s failures.

A statement issued by the Management of BlackShield stated that, “It is noteworthy, that the SEC, refused BlackShield’s application to cease executing the order of revocation pending the hearing of its complaint.”

“The SEC disregarded this application by BlackShield and proceeded to deal with the assets of BlackShield despite the hearing. It is therefore surprising that the SEC would use the pendency of the same matter as an excuse to perform a duty which BlackShield has always supported and encouraged the SEC to do.”

The company also noted that Blackshield is unaware of any proceedings by any person to secure liquidation orders as no shareholder had been notified of the pendency of such an application.

Blackshield also stated that it is surprising that “the singular entity whose customers constitute the vast majority of affected persons among the 53 fund managers whose licences were revoked” are being left out in the bailout package.

On the issue of validation, the management of BlackShield Capital Limited described as false allegations that it has been unable to validate clients of the company owing to partial access to records of Blackshield and provision of 3% of records.

“SEC has had full access to the client’s information at least on three different occasions between 2019 till date,” the statement noted.

“BlackShield is surprised by this allegation of SEC regarding access to information on customers of BlackShield for validation purposes. We are interested to know how the SEC determined what percentage of the portfolio was given to them. Using the total value of claims filed, which the SEC reported to be GHS 4.65 Billion (a number significantly higher than the actual portfolio), 3% amounts to GHS 139 Million. Is the SEC claiming that BlackShield submitted a document or documents showing a total SF portfolio of less than 140 Million” the statement added.

Click here for the full statement:

Background

The Securities and Exchange Commission over the weekend said government was set to announce a bailout package for clients of the 53 defunct Fund Management Companies (FMCs).

According to SEC, the package will be given in phases with the first phase covering clients of the twenty-two (22) companies currently under official liquidation.

It further noted that the Official Liquidator, the Registrar General, will communicate details of the payment process to affected clients starting in September 2020.

It however noted that no action could be taken for clients of Blackshield Capital Management Limited, Firstbanc Financial Services Limited, Apex Capital Partners and Ideal Capital Partners Limited since they have filed applications in court to challenge the revocation of their licences by the Securities and Exchanges Commission.

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