The Registrar of Financial Institutions has suspended the portfolio manager licence for Alliance Capital Limited for breach of technical operating requirements as required by the financial services law.
This comes against social media reports that the company had been failing to pay money to its investors on maturity of their investments or on withdrawal.
Further, the rumour mill has it that one client sued the company over such conduct, hence the decision.
A statement published by the Reserve Bank of Malawi (RBM) indicates that the decision to suspend the licence is intended to safeguard the interest of investors and the general public to ensure that the company honours its obligations.
“During the period of the suspension of the licence, the company shall not be allowed to accept new business. However, the company will concentrate on repaying liabilities to investors and other creditors,” the statement reads.
While confirming the development, RBM spokesperson Onelie Nkuna declined to disclose how much the company is expected to pay the investors and creditors.
“The investors and general public should know that the suspension is only on engaging in new business but it will continue operating focusing at repaying investors and other creditors,” Nkuna said.