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Markets Regulator Wades Into Cytonn Investments Saga

CMA cautions investors against investing in unregulated products

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Cytonn Investments Saga: In line with its investor protection mandate, the Capital Markets Authority (CMA) has cautioned investors against investing through unlicensed and unapproved entities. CMA Chief Executive Wyckliffe Shamiah advised investors to use licensed and approved institutions who offer and promote regulated products to enjoy protection offered by the capital markets legal and regulatory framework.

Investors who use unlicensed and unapproved entities risk loss of their investments with no recourse under the capital markets regulatory framework.  Following numerous enquiries regarding the licensing status of the Cytonn Investment Group, Mr Shamiah said, “the Authority confirms that Cytonn Investments is not a licensed and approved entity.”

He urged investors affected by investing in unregulated products to report to the Capital Markets Fraud Investigation Unit (CMFIU), the police unit attached to the Capital Markets Authority.

CMFIU is currently investigating the issue for criminal violations for investors in the Cytonn High Yield Solutions (CHYS). He said the authority had on 20th April 2020 communicated this information to the public’.

CMA has licensed Cytonn Asset Management Limited, which is licensed as a Fund Manager managing the following regulated funds: 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. So far CMA has not received any complaints on these regulated products.

“Investors are advised to confirm the names of the licensed and approved entities offering services in the capital markets industry from the CMA website www.cma.or.ke,” he said. “Members of the public who have been affected or have come to be aware of such illegal entities are advised to report to the Authority or to the Capital Markets Fraud Investigation Unit.”

Next >> Cytonn Money Market Fund Records Fastest Growth

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BT Correspondent
BT Correspondenthttp://www.businesstoday.co.ke
editor [at] businesstoday.co.ke
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