CMA blocks Cytonn Asset Managers from recruiting new clients
MARKET Capital Markets Authority (CMA) has directed Cytonn Asset Managers Ltd, a licensed fund manager, to immediately stop signing-up new clients until it changes the names of its business and regulated products.
The move seeks to enhance investor protection and promote investor confidence in the integrity of capital markets. CMA said the change of the name of the licensed fund manager and the regulated products it offers to the public will effectively eliminate any confusion caused by the similar name used by the unlicensed entity Cytonn Investments Management Limited.
“This will enable the public to clearly distinguish between the entity and products that we regulate from the unlicensed entity offering unregulated products and thus facilitate better decision-making’, said CMA Chief Executive Wyckliffe Shamiah.
The directive to stop onboarding clients will be in effect for a period of three months or such a time when the fund manager will fully comply with the directive to change the names of its business and regulated products.
In line with its investor protection mandate, CMA in June cautioned investors against investing through unlicensed and unapproved entities.
Shamiah advised investors to only invest through licensed and approved entities who offer and promote regulated products, to enable them get protection offered by the regulator through the capital markets legal and regulatory framework.
In a press statement, CMA said investors who invest in unregulated products offered or promoted by unlicensed and unapproved entities risk loss of their investments with no recourse afforded to them 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 further stated that, “investors who are affected by investing in unregulated products should report to the Capital Markets Fraud Investigation Unit.