Cytonn Asset Managers suspended from taking up new investors

NAIROBI, Kenya, Aug 7 – The Capital Markets Authority (CMA) has directed Cytonn Asset Managers Limited, a licensed fund manager, to immediately stop signing-up new clients until it changes the names of its business and its regulated products.

In a statement, CMA says the move seeks to enhance investor protection and promote investor confidence in the integrity of capital markets and is in line with the provisions of the Capital Markets Act section 11.

CMA CEO Wyckliffe Shamiah CMA said the change will effectively eliminate any confusion caused by the similar name used by the unlicensed entity Cytonn Investments Management Limited.

Shamiah added that the move will also enable the public to distinguish between the entity and products that are regulated by CMA, from the unlicensed entity offering unregulated products.

“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,” Shamiah said.

The directive to stop onboarding clients will be in effect for a period of 3 months or such a time when the fund manager will fully comply with the directive to change the names of its business and its regulated products.