The Securities and Exchange Commission (SEC) has restored the licenses of some fund management firms that applied for a review of decision but rejected others.
This was after the commission established an Administrative Hearing Committee (AHC) to look into these cases and the firms that want their license revocation re-considered.
On November 8, 2019, SEC revoked the licenses of some 53 fund management firms due to liquidity and regulatory breaches. It added that the affected companies failed to return clients’ funds, which remained locked up in contravention to the investment rules.
The Commission added that these firms also failed to perform functions efficiently, honestly and fairly and in some cases are in continuing breach of the requirements under relevant securities laws.
Outcome of Administrative Hearing Committee
According to the Securities and Exchange Commission, following the revocation of the licenses, some of the 53 have exercised their right under Section 19 (3) of Act 929 and appealed to the Commission’s AHC for re-consideration of the decision.
The committee, having considered the appeals and based on new evidence available to it, decided as restore the licenses some firms, extend some, while sustaining the rest in terms of sanctions