The Securities and Exchange Commission, SEC says as a regulator they cannot be wholly blamed for the collapse of 53 fund management companies.
According to SEC, the decision of some fund managers to promise guaranteed returns cannot be entirely the fault of the SEC.
Deputy Director-General for SEC, Paul Ababio explained that the SEC rather resorted to various engagement to ensure that both investors and their fund managers are not worse off in the complete halt in the guaranteed returns.
The provision of guaranteed returns is one of the reasons SEC cited for the revocation of licences of some of the Fund Management companies even though the regulator has directed that the process should be stopped since 2012.
Speaking to Citi FM, Paul Ababio said they will ensure compliance going forward.
Paul Ababio also disclosed that the validation of claims of customers for the collapsed fund management companies is expected to begin this week.
According to him, these steps are taken to sanitize the industry.
"It's an attempt to really sanitize the industry and to make sure that those who remain are able to operate and also if you have a lot of distress firms you had to implement some of these things, some of them as far back as 2016, 2017 struggled to make payments.
"We will make announcements and we will give people timelines on where they can file their claims, we are putting arrangements in place to ensure that things happen in an orderly manner and there will be the appropriate notifications as to when we progress but the framework is that we will make some reliefs available and that is also part of the reliefs that we are looking at for investors."