The Capital Markets Authority (CMA) has suspended Trade Sense Limited’s Money Manager license for 90 days due to non-compliance with regulatory requirements.

Trade Sense Limited, a Kenyan investment firm, specializes in forex trading, offering investors an alternative way to invest in securities. With over eight years of experience, the firm uses a trading system to capitalize on global currency market inefficiencies.

“The suspension is due to the failure by Trade Sense Limited to comply with various regulatory requirements which undermines the duty to protect investors and foster market confidence,” said CMA chief executive Wycliffe Shamiah.

CMA stated that it has been engaging the management of Trade Sense Ltd since 2023 to address various regulatory breaches. The breaches include non-compliance with governance, financial, anti-money laundering and operational requirements. 

According to Section 13 B (4) of the Capital Markets Act “the Authority may, where satisfied that the capital markets or an investor shall suffer irreparable damage as a result of an activity under subsection (1), impose an interim measure for not more than three months to prevent further damage pending completion of an inquiry.”

During the 90-day suspension period, CMA will conduct a review to determine whether to lift the suspension or take further regulatory or enforcement action as may be necessary.

A money manager is an entity licensed by CMA to engage in the business of managing the online foreign exchange portfolio of an individual or institutional investor in return for a fee based on a percentage of assets under management.

However, a money manager is prohibited from receiving clients’ funds but only granted trading rights access to the funds deposited by the client directly to the client’s online trading account through the online foreign exchange broker.

The enforcement action underscores CMA’s bid to protect investors and ensure the proper conduct of all licensed entities and capital markets institutions to maintain order and integrity in the capital markets.

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