Kenya’s Regulator Warns on Investing through Unlicensed Entities

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 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 the 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.

Status of Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term in Africa

The CMA has not 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 Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term with FSCA, CMA in South Africa & Kenya, respectively.