You are on your own, CMA tells Cytonn investors
You are on your own if you have been investing your hard earned money under the scheme Cytonn Investment Group.
The sobering warning from the Capital Markets Authority (CMA) to the investing public was released today as the watchdog noted Cytonn Investment Group “is not a licensed and approved entity.”
“Investors who are affected by investing in unregulated products should report to the Capital Markets Fraud Investigation Unit,” said CMA chief executive Wycliff Shamiah.
The unit, which is a police arm attached to the CMA is currently investigating Cytonn for criminal violations for investors in the Cytonn High Yield Solutions (CHYS), a matter that was broadcast to the investing public in April, last year, added the markets watchdog.
Cytonn, however, countered saying CHYS was structured as a private offer within the meaning of Regulation 21 of the Capital Markets (Securities) Regulation after consultations with the regulator.
In CMA letter dated April 14, 2016, the then Director of Market Operations, Wycliffe Shamiah, said: “As you had observed, an offer will be considered a private offer if it meets any of the conditions provided.”
As anxiety gripped the markets, Cytonn urged their 30,000 investors to “keep calm as we continue to address the issues making rounds in the social media.”
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At the moment, CMA has authorised Cytonn Asset Management Ltd as a fund manager for the schemes Cytonn Money Market Fund, Cytonn Balanced Fund, and Cytonn Equity Fund.
Others are Cytonn Africa Financial Services Fund, Cytonn Money Market Fund and Cytonn High Yield Fund all of which the CMA has given a clean bill of health with respect to their management.
According to Acca Global, fund managers are financial investment experts who use their knowledge, skills and experience to invest money on behalf of their clients.
With the guidance of the fund manager, an individual investor will choose a fund based on their investment objectives, risk appetite and fees involved.
Cytonn Investments is an investment and real estate company, with offices in Nairobi – Kenya and DC Metro area – US, the company states in its website.
