No one will be left out in bailout for clients of defunct fund managers – SEC clarifies

No customer will be excluded in government’s bailout package for persons whose funds have been locked-up in the 53 defunct fund management companies since November 2019.

This assurance was given by the Securities and Exchange Commission (SEC). Earlier indications suggested that customers of Blackshield Capital Management Limited and three other fund management firms would not benefit from the package because such companies were challenging the revocation of their licences in court.

This led to agitation among clients of the affected companies. Some of them picketed at the premises of the Ministry of Finance on September 1, 2020. But the SEC in a statement on Wednesday, September 2, 2020, clarified that its earlier statement announcing the bailout package had been misinterpreted.

SEC also explained that the agreement it had with Government was for the bailout to be effected phases only after validation of claims and liquidation orders are secured.

SEC also used the statement to respond to some of the claims made by Blackshield Capital Management Limited.

Source:Fiilafmonline/CitiNews