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16.04.2019 Business & Finance

Gold Coast Agrees To Cease Collection Of New Funds

Staff Writer
Business Gold Coast Agrees To Cease Collection Of New Funds

Gold Coast Fund Management (GCFM) has welcomed the Security and Exchange Commission (SEC) engagement with the company to find a lasting solution to the liquidity crisis it faces.

The Commission has revealed they have received and started reviewing proposals from GCFM, the biggest fund manager, on how they hope to meet payment obligations to their customers and investors.

GCFM’s action follows the Commission saying it is 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 Fund Management, “has expressed optimism that the approval of its proposal would give their 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 of GCFM, 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.”

Related: SEC directs Gold Coast Fund Management to cease collection of new funds

“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”, added Afreh.

The company said it “has so far paid nearly ¢70 million to aggrieved customers and various categories of clients and has shared details of these payments with the regulator.”

Also, 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.”

GCFM said it is also taking firm and urgent steps to recover investments placed with other financial institutions and government infrastructure products.

“When government agencies pay contractors for work done, it will restore normal operations for GCFM,” it concluded.