Gov't to pay clients of defunct Fund Management Companies from September

The Securities and Exchange Commission, SEC has in a statement revealed that government will from September this year announce details of the payment process of clients of defunct Fund Management Companies.

This according to the statement forms part of the government's bailout package for clients of the 53 defunct Fund Management Companies.

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

 

A statement issued by the Securities and Exchanges Commission explained that the Official Liquidator, the Registrar General, will communicate details of the payment process to affected clients starting in September 2020.

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“Prior to the Official Liquidator realising value from assets, the Government, mindful of the plight of Investors, has reiterated its commitment to a bailout package for clients of the FMCs in the form of a social intervention similar to what was done for depositors of the failed SDIs and MFIs.”

“The first phase will cover clients of the twenty-two (22) companies currently under official liquidation per Court orders, based on their validated claims. The Official Liquidator will communicate details of the payment process to affected clients starting in September. The second phase would cover clients of the remaining companies after the liquidation orders are secured,” the statement noted.