The Security and Exchange Commission (SEC) has confirmed Gold Coast Fund Management (GCFM) stopped taking new depositors funds since October last year when the commission issued a directive to all fund managers to halt taking new funds and issuing fixed-term/guaranteed returns to clients.

GCFM was one of the first companies to have complied with the regulator and is currently in the process of engaging the regulator on replacement investment vehicles to help resolve their liquidity crisis.

This confirmation comes in at the right time since the regulator, a few days ago issued a press release stating that it has recently asked Gold Coast to stop taking new funds. Meanwhile, Gold Coast is on record to have confirmed it stopped taking new funds last year.

In an interview during the Super Morning Show on Joy FM, the Director General of SEC, Rev Daniel Ogbarmey Tetteh confirmed that GCFM stopped taking new deposits seven months ago and the company submitted a proposal on how to resolve the liquidity challenges and how to subsequently meet payment obligations to their customers and investors.

“We are currently reviewing the proposal submitted by Gold Coast to find an amicable solution to the liquidity issues. We had a number of questions with the initial proposal they submitted to us and we asked them to revise the proposal based on our concerns and submit for final approval.”

“We have been working quietly in the back with Gold Coast but we recently issued a public statement to let investors and the general public know the progress of work done with the company”, the Director-General added.

Gold Coast Fund Management has meanwhile paid nearly GHS 70 million to aggrieved customers and is taking firm and urgent steps to recover investments placed with other financial institutions and government infrastructure in order to continue making payments to clients whilst it awaits approval from SEC on its proposal.