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Kenya’s Regulator Warns on Investing through Unlicensed Entities

The CMA also reminded people to report any financial wrongdoing to the Capital Markets Fraud Investigation Unit (CMFIU).

The Capital Markets Authority (CMA) has issued a warning on unlicensed investment products offered by companies not authorized by Kenyan authorities on Thursday. According to the alert, investors are exposed to losing money by investing through unauthorized and unapproved entities in the country, opening the doors for the propagation of illegal financial companies.

“The Authority confirms that Cytonn Investments is not a licensed and approved entity. Therefore, investors who are affected by investing in unregulated products should report to the Capital Markets Fraud Investigation Unit (CMFIU), which is the Police Unit attached to the Capital Markets Authority,” Wyckliffe Shamiah, CMA Chief Executive, commented.

Moreover, Kenya’s financial authority noted that the fraud unit is investigating the following matter: “CMFIU is currently investigating the issue for criminal violations for investors in the Cytonn High Yield Solutions (CHYS).” Also, the CMA took the opportunity to remind people that Cytonn Asset Management Limited currently holds a license as a fund manager by the Kenyan financial authorities, as well as its following funds: 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.

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Status of Forex in Africa

The CMA hasn’t received any complaints on these funds as of press time, the alert clarified. Founded in 1989, the Capital Markets Authority is the statutory agency of the Kenyan government in charge of regulating the financial and capital market affairs across the country under the Capital Markets Act Cap 485A.

In March, Finance Magnates published a report about the status of the forex industry in Kenya in 2020. It highlighted that since the new regulatory framework for online forex and CFD trading, Kenya’s Retail Forex Market has since grown about 80% percent with over 90,000 traders. Moreover, in 2020, Africa witnessed a boom in terms of adoption, as many large global CFD brokers have applied or gained full regulation with FSCA, CMA in South Africa & Kenya, respectively.

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Source: https://www.financemagnates.com/regulation-4/kenyas-regulator-warns-on-investing-through-unlicensed-entities/

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