The Capital Markets Authority (CMA) has confirmed that Cytonn Investments is not a licensed and approved entity and thus operating illegally.
In a statement, CMA Chief Executive, Wyckliffe Shamiah stated that 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 CMA.
Already, CMFIU has instituted criminal probe against the self-styled real estate outfit.
“CMFIU is currently investigating the issue for criminal violations for investors in the Cytonn High Yield Solutions (CHYS),” he said.
This comes after numerous enquiries regarding the licensing status of the Cytonn Investment Group.
Shaminah reiterated that the authority on April 20, 2020 communicated this same information to the public.
“CMA has licensed Cytonn Asset Management Limited, which is licensed as a Fund Manager managing the following regulated 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,” the authority said.
Further, he advised investors to only invest through licensed and approved entities who offer and promote regulated products, to enable them get protection offered by the Authority through the capital markets legal and regulatory framework.
He said that 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 cautioned investors against investing through unlicensed and
Investors are advised to confirm the names of the licensed and approved entities offering services in the capital markets industry from the CMA website www.cma.or.ke.
Cytonn Investments is fast eroding investors’ confidence as some of investors are fighting to withdraw their investment money.
While the investment firm argues that Covid-19 has affected their liquidation, not refunding money to their investors after extension of maturity lapses highlights the souring relations between the firm and investors over the past year.
However, some investors claim that long before Covid-19, the investment had liquidity challenges and was already in breach of many disputes.
Cytonn invoked a greater force extending the maturity date of two of its real estate funds – the Cytonn High Yield Solutions (CHYS) and the Cytonn Project Notes – to June this year.