Ovation drama draws to a close

On Thursday Judge Dennis Davis approved the application to have investors’ funds released from the Ovation platform. The application was initially lodged on September 3 2009, however the curators of Fidentia and Common Cents had opposed the application, resulting in a delay.

In approving the application, Judge Davis dismissed, with costs, the objections by both Fidentia and Common Cents.

While this is good news for investors who have been unable to access their funds for over two years and who have had to pay extremely high curatorship fees, the application also approved the retention of R240-million for curatorship costs in the winding up process and any possible future claims against the funds.

This amount will be proportionately drawn from every investment contract, therefore investors in Ovation administered funds will not receive 100% of the value of their investment (read Regulator costs investors). Furthermore, the funds will not be paid out immediately as the curators have to wait until the leave to appeal has expired.

Investors in voluntary products will receive the funds either directly or they will be transferred to a new administrator. Retirement products will be placed under the administrative care of Intervest or Equinox and Living Annuities will be transferred to Metropolitan.

For more information see the Ovation website ( www.ovationglobal.com).