{"id":14949,"date":"2020-09-25T19:52:04","date_gmt":"2020-09-25T19:52:04","guid":{"rendered":"https:\/\/www.africa-press.com\/kenya\/?p=14949"},"modified":"2020-09-25T19:52:04","modified_gmt":"2020-09-25T19:52:04","slug":"cma-raises-alarm-over-safety-of-cytonn-fund","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/kenya\/economy\/cma-raises-alarm-over-safety-of-cytonn-fund","title":{"rendered":"CMA raises alarm over safety of Cytonn fund"},"content":{"rendered":"

Author:\u00a0WAINAINA WAMBU\u00a0<\/strong>
\nAfricaPress-Kenya:<\/strong> The Capital Markets Authority (CMA) has raised alarm over the failure by Cytonn Investments\u00a0to honour matured investors\u2019 claims amounting to more than Sh122.8 million.<\/p>\n

These funds are held in investment schemes that the authority does not regulate, and have been listed in a protracted legal battle between CMA and the Cytonn High Yield Fund (CHYF).<\/p>\n

CMA had requested that the CHYF reduce its investments into\u00a0Cytonn-related projects to 10 per cent of the fund\u2019s total assets under management (AUMs) as per regulations to minimise risks and protect investors.<\/p>\n

However, Cytonn moved to court seeking to fight the 10 per cent limit in a case that still ongoing<\/p>\n

The firm\u2019s Chief Executive Edwin Dande told the court that the directive was economic sabotage.<\/p>\n

On Tuesday, the High Court suspended CMA\u2019s attempt to limit\u00a0CHYF from not investing more than 10 per cent of funds in its portfolio and freezing any investment of the funds held in SBM Bank, pending the determination of the case.<\/p>\n

CHYF is authorised by CMA to largely invest 80 per cent of AUMs \u2013 which consist of publicly pooled funds \u2013 in real estate assets.<\/p>\n

In court documents responding to Cytonn, CMA said it was receiving complaints from investors on the Cytonn High Yield Solutions and Cytonn Project Notes, which CMA does not regulate, terming them high risk.<\/p>\n

CMA Acting Director, Marketing Operations, Abubakar Hassan Abubakar wrote to Mr Dande on Monday asking for a quick resolution to outstanding complaints.<\/p>\n

\u201cThe authority has noted with concern … complaints from members of the investing public. The complainants have alleged to have invested in the Cytonn High Yield Solutions and Cytonn Project Notes, investments managed by Cytonn Investments Management Ltd,\u201d noted CMA in a letter to Cytonn.<\/p>\n

\u201cThe authority further notes the high risks posed by the aforementioned products to the investing public and inability by\u00a0Cytonn Investments Management\u00a0to meet its obligations as and when they fell due.\u201d<\/p>\n

The CHYF is a collective investment scheme (CIS) regulated by CMA but the sponsor is Cytonn Investment Management, which is not regulated by the authority. The regulator warned that failure of compliance might lead to the loss of investor money.<\/p>\n","protected":false},"excerpt":{"rendered":"

Author:\u00a0WAINAINA WAMBU\u00a0 AfricaPress-Kenya: The Capital Markets Authority (CMA) has raised alarm over the failure by Cytonn Investments\u00a0to honour matured investors\u2019 claims amounting to more than Sh122.8 million. These funds are held in investment schemes that the authority does not regulate, and have been listed in a protracted legal battle between CMA and the Cytonn High […]<\/p>\n","protected":false},"author":84,"featured_media":14952,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,8],"tags":[2543,5809,5810],"class_list":["post-14949","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-homepage-english","tag-capital-markets-authority","tag-cytonn-high-yield-fund","tag-cytonn-investments"],"yoast_head":"\nCMA raises alarm over safety of Cytonn fund - kenya<\/title>\n<meta name=\"description\" content=\"The Capital Markets Authority (CMA) has raised alarm over the failure by Cytonn Investments\u00a0to honour matured investors\u2019 claims\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/kenya\/economy\/cma-raises-alarm-over-safety-of-cytonn-fund\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"CMA raises alarm over safety of Cytonn fund\" \/>\n<meta property=\"og:description\" content=\"The Capital Markets Authority (CMA) has raised alarm over the failure by Cytonn Investments\u00a0to honour matured investors\u2019 claims\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/kenya\/economy\/cma-raises-alarm-over-safety-of-cytonn-fund\" \/>\n<meta property=\"og:site_name\" content=\"kenya\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2020-09-25T19:52:04+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/kenya\/sites\/28\/2020\/09\/cma_raises_alarm_ove5f6ccd2553b26.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"655\" \/>\n\t<meta property=\"og:image:height\" content=\"410\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/cma-raises-alarm-over-safety-of-cytonn-fund#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/cma-raises-alarm-over-safety-of-cytonn-fund\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"CMA raises alarm over safety of Cytonn fund\",\"datePublished\":\"2020-09-25T19:52:04+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/cma-raises-alarm-over-safety-of-cytonn-fund\"},\"wordCount\":369,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/cma-raises-alarm-over-safety-of-cytonn-fund#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/kenya\/sites\/28\/2020\/09\/cma_raises_alarm_ove5f6ccd2553b26.jpg\",\"keywords\":[\"Capital Markets Authority\",\"Cytonn High Yield Fund\",\"Cytonn Investments\"],\"articleSection\":[\"all news\",\"economy\",\"homepage-english\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/kenya\/economy\/cma-raises-alarm-over-safety-of-cytonn-fund#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/cma-raises-alarm-over-safety-of-cytonn-fund\",\"url\":\"https:\/\/www.africa-press.net\/kenya\/economy\/cma-raises-alarm-over-safety-of-cytonn-fund\",\"name\":\"CMA raises alarm over safety of Cytonn fund - 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