CMA Cautions Investors Against Investing Through Unlicensed Firms
In line with its investor protection mandate, the Capital Markets Authority (CMA) has cautioned investors against investing through unlicensed and unapproved entities.
Capital Markets Authority Acting Chief Executive, Mr Wyckliffe Shamiah has advised investors to only invest through licensed and approved entities to enable them get protection offered by the Authority through the capital markets legal and regulatory framework. Mr. Shamiah observed; ‘’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’’.
Following numerous enquiries received by the Authority regarding the licensing status of the Cytonn Investment Group, Mr. Shamiah 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. 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.
Investors are advised to check correctly the names of the licensed and approved entities’’.
Mr. Shamiah 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 as if they are licensed. He added; ‘’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.
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.