The battle between the SEC and some indigenous companies continues unabated as their latest target has become the GN Gold Coast Fund, which has been reported to be in some distress.
Like Menzgold, there is quite a simple explanation for why the fund is in ‘trouble’ and it’s because of apparent overreach from the Securities and Exchange Commission.
Groupe Nduom (GN), like Menzgold, is owned by a celebrated Ghanaian businessman – Dr Papa Kwesi Nduom -and yet they are the ones being ‘pulled down’.
The reason the fund is shutting down, GhanaCelebrities.Com has learned, is because of a new SEC directive which is calling for all financial vehicles offering guaranteed returns to shut down.
Due to that directive, GN has to shut down the Gold Coast Fund Management.
The company outlined the new position they’re being forced to take in a letter to customers.
Whilst the Gold Coast Fund has not been so lucky, Menzgold Ghana has announced a plan to return to business in about a week’s time.
We wish to inform you of the directive by the regulator, SEC to all Fund Managers to discontinue all investments which offer guaranteed returns such as fixed deposits and close such positions by 31st December 2018.
As a result of this and in view of current market realities, we are discontinuing the sales of our Structured Finance (SF)product.
You may kindly speak to your branch about other investment products such as the GMMF and GFUT, all performing beyond treasury rates.
Kindly note that this directive does not affect other products such as our mutual fund products, GMMF and the GFUT, Provident and Pension funds, Stock Brokerage and Government Treasury Bills.
Thank you for your continued business.”