This, according to Dr Papa Kwesi Nduom, President and chairman of Groupe Nduom, was in line with a directive issued by the Securities and Exchange Commission (SEC) on guaranteed return products.

SEC in June this year ordered fund management companies to stop the practice which was flouting its regulations and gave the companies a 6-month ultimatum window [July 1 - December 31, 2018] to unwind the fixed term investments in their books, and migrate their clients to other options like managed account mandates and collective investment schemes.

SEC ordered that "no such new investments should be made by any fund manager" and that "fund managers should unwind such existing investments on maturity. Maturities beyond the 6-month window will be considered on a case by case basis."

Click here to download the SEC order

In a post on Facebook Monday morning, Dr Papa Kwesi Nduom gave the indication that Gold Coast was responding to the SEC order and that, "There is only ONE Gold Coast product that is undergoing change and IT IS THE STRUCTURED FINANCE FUND OR SF."

"We have started compliance to Securities and Exchange Commission (SEC) directive to stop guaranteed return products so from now on, NO MORE SF," Dr Nduom wrote.

"For individuals, it has been replaced with a Collective Investment scheme (With Investments made with customers’ money to be liquidated and all Customer Funds To be paid over 3 years); about three thousand customers will be paid back their investments next week."

Read Dr Nduom's full Facebook post below

For the Benefit of the Public about Gold Coast

It is important that we clarify certain facts about Gold Coast Holding Company as follows:

1. Gold Coast companies and products are working and performing very well including pension, provident funds, brokerage, mutual fund and unit trust.

2. Indeed the Gold Fund Unit Trust is the best performing fund of it type in Ghana this year at over 19%.

3. There is only ONE Gold Coast product that is undergoing change and IT IS THE STRUCTURED FINANCE FUND OR SF.

We have started compliance to Securities and Exchange Commission (SEC) directive to stop guaranteed return products so from now on, NO MORE SF.

For individuals, it has been replaced with a Collective Investment scheme (With Investments made with customers’ money to be liquidated and all Customer Funds To be paid over 3 years); about three thousand customers will be paid back their investments next week.

For institutional Customers their investment have been put into a Managed Account for continuous management.

4) Individuals can choose to invest in alternative Gold Coast funds when their investments are paid to them.

The public should note that the practice of keeping short term money where customers come monthly and quarterly for funds and rely on the investments for emergencies is not a feasible way to fund a credible medium to long term investment program.

THIS MISUNDERSTANDING OF INVESTMENTS IS WHAT IS CAUSING DISAFFECTION.

If the company has contributed to this, we apologize for it. So we have come up with a program and schedule to return all such funds to the customers. Every affected customer will receive written communication on the change.

NO ONE WILL LOSE A PESEWA OF THEIR FUNDS.