The Capital Markets Authority (CMA) has cautioned investors against placing their faith in unlicensed fund mangers warning that the regulator cannot protect investment funneled through firms foreign to the regulatory framework.
CMA Acting Chief Executive Wycliffe Shamiah says investors risk losing their money in the wake of rising cases of poorly thought out investment avenues in the country that have left a large number of Kenyans to their own devices after realizing they have invested with unchecked entities.
Shamiah was speaking following numerous inquiries on the licensing status of Cytonn Investment Group, sentiments which were shared in a statement to newsrooms
The acting boss said the only licensed entity is Cytonn Asset Management Limited, which is licensed as a Fund Manager and a Real Estate Investment Trust (REIT) Manager.
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The funds managed by the entity under the approved Collective Investment Schemes are; Cytonn Money Market Fund, Cytonn Balanced Fund, Cytonn Equity Fund, Cytonn Africa Financial Services Fund, Cytonn Money Market Fund (USD) and Cytonn High Yield Fund.
He further advised investors to confirm the licensing status of any firms offering services in the capital markets industry with the Authority since it has been noted that some of unlicensed and unapproved entities are pitching investment opportunities under the guise they are licensed.
“Investors are advised to check correctly the names of the licensed and approved entities. They should undertake due diligence and check the license status of any entity marketing investment opportunities and purporting to be licensed by the Authority,” added Shamiah.
“The Authority will take appropriate enforcement action against any persons or entities illegally conducting business in the capital markets industry without a license. Members of the public who have been affected or become aware of such illegal entities are advised to report to the Authority or to the Capital Markets Fraud Investigation Unit,” said Shamiah.