This archive report was first published on 20 April 2020.
Published on April 20, 2020, the Capital Markets Authority (CMA) has issued a stern warning to investors against placing their trust in unlicensed fund managers.
According to CMA Acting Chief Executive Wycliffe Shamiah, investors risk losing their money in the wake of rising cases of poorly thought-out investment avenues in the country.
Shamiah emphasized that the regulator cannot protect investments made through unlicensed firms, which are often foreign to the regulatory framework.
The only licensed entity in the Cytonn Investment Group is Cytonn Asset Management Limited, which is licensed as a Fund Manager and a Real Estate Investment Trust (REIT) Manager.
The licensed entity manages several funds, including the 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.
Shamiah advised investors to confirm the licensing status of any firm offering services in the capital markets industry with the Authority, as some unlicensed entities are pitching investment opportunities under the guise of being 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,” Shamiah added.
“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,” Shamiah said.
