The Securities and Exchange Commission (SEC) has clarified that mutual funds and unit trusts previously managed by investment firms whose licenses were recently revoked are still valid and must run.

According to SEC, the revocation of the licenses on Friday, November 8 of 53 fund managers does not affect the licenses of nor terminate the mutual funds and unit trusts they managed.

“Please note that the revocation of the licenses of the Fund Managers neither affects the valid licenses of, nor terminates the Mutual Funds and Unit Trusts that they used to manage,” SEC said in a statement dated Thursday, November 21, 2019.

It appears some unit holders are submitting claims for payment of their funds as a result of revocations by SEC.

“Shareholders and unit holders of these Mutual Funds and Unit Trusts are therefore not included in the ongoing submission of claims.”

Board of directors of the Funds and trustees of the Trusts have been advised, therefore, to ensure that the schemes continue to run.

They have been further urged to appoint new fund managers.

“Investors of affected CIS shall be advised by their respective boards and trustees when the fund managers are appointed or any other option taken in accordance with Act 929.”