CMA issues advisory against unlicensed Funds

The Capital Markets Authority(CMA) has warned investors that those dealing with unlicensed entities will not get its protection.

This cautionary statement comes amid queries from the public concerning the license status of Cytonn Investment Management Limited. The firm has been under fire for stopping clients from redeeming their investments in its Cytonn High Yield Solutions, (CHYS).

The regulator has noted that within the Cytonn Investment Group, 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’’.

‘’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,” said Wyckliffe Shamiah, Acting Chief Executive, Capital Markets Authority.

Below is a list of Regulated Fund Managers in Kenya

CMA is advising investors to confirm the licensing status of any firms offering services in the capital markets industry with the Authority.

The unresolved scandal surrounding Goldenscape GreenHouses Limited, where investors lost undisclosed sums of money, remains unresolved with those affected increasing unlikely to get their cash back.

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