The Capital Markets Authority (CMA) has warned investors against investing through unregulated and unapproved entities, as part of its investor protection duty.
Mr. Wyckliffe Shamiah, the CMA’s Chief Executive, recommended investors to exclusively invest through regulated and approved firms who offer and promote regulated products
“The Authority certifies that Cytonn Investments is not a licensed and approved entity,” Mr. Shamiah replied in response to repeated inquiries about the Cytonn Investment Group’s licensing status.
“Investors who have been harmed by investing in unregulated products should contact the Capital Markets Fraud Investigation Unit,” he added.,
“So that they can benefit from the Authority’s legislative and regulatory framework for capital markets.
“Investing in unregulated goods supplied or promoted by unregistered and unapproved firms exposes investors to the danger of losing their money with no redress available under the capital markets regulatory framework.
“The (CMFIU) is a police unit linked to the Capital Markets Authority. Investors in Cytonn High Yield Solutions are being investigated by the CMFIU for possible criminal offenses (CHYS).
“On April 20, 2020, the Authority delivered the same information to the public,” he stated.
Cytonn Asset Management Limited has been licensed by the CMA as a Fund Manager for 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.
There have been no complaints about these regulated items thus yet, according to the CMA.
Investors are urged to check the CMA website, www.cma.or.ke, for the names of licensed and approved entities providing capital market services. Members of the public who have been harmed or become aware of such illicit enterprises should contact the Authority or the Capital Markets Fraud Investigation Unit.
