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The Capital Markets Authority (CMA) has directed Cytonn Asset Managers Limited to immediately stop signing-up new clients until it changes the names of its business and its regulated products.
The move seeks to enhance investor protection and promote investor confidence in the integrity of capital markets.
“The directive is founded on the provisions of the Capital Markets Act section 11(1)(d) read together with section 11 (3)(cc) (ii), and 11 (3)(w),” said CMA Chief Executive Wyckliffe Shamiah.
“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.”
Shamiah said that the move would 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.
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 its regulated products.
This comes months after the Authority cautioned investors against investing through unlicensed and unapproved entities, specifically the Cytonn Investment Group.
In June, the Authority confirmed that Cytonn Investments had not been licensed, neither had it been approved to operate.
Shamiah, advised investors to only invest through licensed and approved entities that offer and promote regulated products, to enable them get protection offered by the Authority through the capital markets legal and regulatory framework.
“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,” he said.
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