The Capital Markets Authority (CMA) has cautioned investors against investing through unlicensed and unapproved entities, in line with its investor protection mandate.
“Investors should only invest through licensed and approved entities to enable them get protection offered by the Authority through the capital markets legal and regulatory framework,” said CMA Acting Chief Executive, Wyckliffe Shamiah.
The Authority earlier this month had warned that Kenyans are being lured to trade currencies by unlicensed firms following the sharp movements of the shilling.
“Investors who invest in unregulated and unapproved entities risk loss of their investments with no recourse afforded to them under the capital markets regulatory framework,” said Shamiah.
Cytonn Asset Management Limited is one of the licensed entities, which is licensed as a Fund Manager and a Real Estate Investment Trust (REIT) Manager.
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.
Shamiah said that investors should check correctly the names of the licensed and approved entities.
“Investors should undertake due diligence and check the license status of any entity marketing investment opportunities and purporting to be licensed by the Authority from the CMA website www.cma.or.ke,” he said.
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.
