Legacy Fund Management Limited has assured its customers affected by the clean-up of the sector that they will receive their monies in full.
The company urged them not to panic, as it is going through all the processes to ensure that they receive their monies.
This follows calls some customers made to government to expedite processes to ensure the payment of their locked-up funds.
The customers had claimed that the company had paid them only once and has also not communicated to them subsequent payment dates.
In response to the claims, Legacy Fund Management in a statement explained that it decided to make payment in batches due to the numerous withdrawal requests it received in September 2020.
“We received numerous withdrawal requests from September 2020. Due to the pressure, it became necessary to make payments in batches. All clients were duly informed, and the payments commenced in October 2020. Many first payments have already been made, and additional payments are to be made soon according to the timetable shared with clients.”
“We have been in communication with clients to notify them about the arrangements and when subsequent payments will be made. We are committed to ensuring all clients receive full payments,” the Legacy Fund Management explained in the statement.
The company also insisted that, it has kept its clients updated on any information they needed to know.
“We have kept communication with clients and furnished them with the statements during this period and notified them through text messages. We have kept them informed about how our own process of recovering funds from the Receiver and Official Liquidator is ongoing. We receive funds in tranches and pass them on to clients when the Receiver and Liquidator releases them.”
“In addition to funds from the Receiver and Official Liquidator, we have taken the necessary steps to redeem our investments from various institutions to enable us meet withdrawal requests,” the company added.
Management of Legacy Fund Management further noted that it is working with the SEC to get its licence and achieve full recovery status.
Read the full statement below:
RE: LEGACY FUND MANAGEMENT
Our attention has been drawn to a publication on Citi FM online. The article suggests that clients of Legacy Fund Management are complaining that we have paid them only once and that we have not communicated subsequent payment dates.
The company wishes to respond as follows;
- We received numerous withdrawal requests from September 2020. Due to the pressure, it became necessary to make payment in batches. All clients were duly informed and The payments commenced in October 2020. Many First payments have already been made and additional payments are to be made soon according to the timetable shared with clients. We have been in communication with clients to notify them about the arrangements and when subsequent payments will be made, we are committed to ensure all clients receive full payments.
- We have kept communication with clients and furnished them with their statements during this period and notified them through text messages. We have kept them informed about how our own process of recovering funds from the Receiver and Official Liquidator are ongoing. We receive funds in tranches and pass it on to clients when the Receiver and Liquidator releases them. In addition to funds from the Receiver and Official Liquidator, we have taken the necessary steps to redeem our investments from various institutions to enable us meet withdrawal requests.
- The SEC restored our License provisionally and we are working to achieve full recovery status. So far our plans are on course and we pray that our clients support us to reach full operation so we can conclude all arrangements. We continue to furnish the Securities & Exchange Commission with reports on our operations including ongoing payments and efforts to retrieve our funds.
- We are open to listen to our clients and have provided an open door and various ways by which clients can reach us with their concerns. We continue to encourage our clients to use the channels provided to help address all their concerns. Publications in the media and alarmist statements only worsen things for everyone.
- We are committed to the revival of our business for our own sake and our client’s sake. One sure way to our future revival will be to satisfy everyone and the SEC. We believe will be successful and we ask for the support of our clients, and pray for their forbearance to work with the plan agreed.
(Legacy Fund Management Ltd)
It will be recalled that the Securities and Exchanges Commission in November 2019, revoked the licences of 53 fund management companies due to various breaches including the non-payment of clients’ funds totalling GHS8 billion.
This action affected clients whose investments were locked up with the various fund management companies.
In its quest to rectify the situation and to promote the orderly growth and development of an efficient, fair and transparent securities market in which investors and the integrity of the market are protected, the Securities and Exchange Commission in September last year, restored the licences of three out of the 53 companies whose licences were revoked.
These were Monarch Capital, Legacy Capital and Integrity Fund Management.
According to the Director-General of the Security and Exchange Commission, Reverend Daniel Ogbarmey Tetteh, per the Securities Industry ACT 929, 2016 market operators are allowed to file appeals through the administrative hearing committee.
As a result, 8 of the companies whose licences were revoked applied.
Out of these, three financial institutions who sought redress through the administrative hearing committee of the SEC were successful, thus the restoration of their licences.
He added that customers of the three companies were now excluded from the bailout package and can access their funds directly from the various institutions.