Business NewsCMA Stops Cytonn Asset Managers Limited From Recruiting New Clients

Edwin H. Dande, CEO at Cytonn Investments Limited.

The Capital Markets Authority (CMA) has directed Cytonn Asset Managers Limited, a licensed fund manager, to stop signing new clients immediately.

This is until it changes the names of its business and related products. The regulator says the move seeks to enhance investor protection and confidence in the integrity of the capital markets.

The Authority said the change of name of the licensed fund manager and the regulated products it offers to the public will eliminate confusion caused by similar products provided by the unlicensed Cytonn Investments Management Limited.

Also Read: Cytonn Back to Limelight as Investors Cry Foul Over High Yield Fund

According to CMA Chief Executive Wycliffe Shamiah, the directive has been taken to enable the investing public to distinguish between regulated products and those from the unregulated entity.

The period for Cytonn Asset Managers to stop onboarding clients will be in effect for three months or when the fund manager will fully comply with the directive to change names of the business and its regulated products.

According to Abubakar Hassan, CMA’s Director of Market Operations, investigations on Cytonn revealed that the whole activity it was involved in resembles fund management.

“They have an entity that does real estate and another one that collects money from the public to fund the real estate business. There is a mismatch because cash collected from the public is short-term ( six months to one year) while real estate investment is long term,” said Hassan in a recent interview.

Jackson Okoth from The Kenyan Wallstreet contributed to this article.

 

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