{"id":16390,"date":"2020-10-23T20:41:31","date_gmt":"2020-10-23T20:41:31","guid":{"rendered":"https:\/\/www.africa-press.com\/kenya\/?p=16390"},"modified":"2020-10-23T20:41:31","modified_gmt":"2020-10-23T20:41:31","slug":"high-court-extends-a-30-day-relief-to-cytonn-investment","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/kenya\/economy\/high-court-extends-a-30-day-relief-to-cytonn-investment","title":{"rendered":"High Court extends a 30-day relief to Cytonn Investment"},"content":{"rendered":"<p><strong>Author: Sam Kiplagat<\/strong><br \/>\n<strong>AfricaPress-Kenya:<\/strong> The High Court has given property dealer Cytonn Investments a month to recruit a new trustee for its fund mobilising arms, Cytonn Asset Managers Limited and Cytonn Unit Trust.<\/p>\n<p>Justice Grace Nzioka also directed the regulator, Capital Markets Authority (CMA), to issue a fresh notice to Cytonn within 30 days as per the law.<\/p>\n<div class=\"content-page-ad_wrap\"><\/div>\n<p>At the expiry of the period, the judge said, CMA would be free to take relevant action against Cytonn in accordance with the law.<\/p>\n<h4>Cytonn Unit Trust Funds<\/h4>\n<p>\u201cIt is clear to the court that, a new trustee has not been appointed in accordance with the provisions of regulations 29. From the correspondence, there is no indication that further effort is being made to appoint one,\u201d the judge noted, adding, Cytonn was instead lobbying for change of the law as to the persons who can act as trustees.<\/p>\n<p>It was her opinion that, Cytonn Unit Trust Funds \u201ccannot operate without a trustee. However, in regulating them, the respondent should cite clearly the relevant provisions of the law.\u201d<\/p>\n<p>Cytonn had challenged a directive by the regulator [barring it] from taking new clients until a new trustee was in place.<\/p>\n<p>According to CMA, the move was meant to protect them from potential risks.<\/p>\n<p>Cytonn, however challenged the move arguing that it was an act of economic sabotage and unreasonable.<\/p>\n<h4>Performing trustee<\/h4>\n<p>It also challenged the constitutionality of the regulations 26(1) and 29(1) of the Capital Markets (Collective Investment schemes) regulations 2001, which provides that only banks can be trustees.<\/p>\n<p>In an affidavit filed in court, Mr Abubakar Hassan, the acting CMA director, market operations, said Cytonn failed to appoint a trustee to replace Co-operative Bank, which had resigned.<\/p>\n<div class=\"content-page-ad_wrap\"><\/div>\n<p>Mr Hassan said the fund had Sh717,336,949, which was at risk in the absence of a performing trustee. He said any other deposit by new unit holders, under such condition will only work to amplify the \u201cpotential exposure to the detriment of not only the investors but also the general public\u201d.<\/p>\n<p>He said that the CMA directive, even though meant to shield the scheme from further risks, does in no way affect persons who are already unit holders.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Author: Sam Kiplagat AfricaPress-Kenya: The High Court has given property dealer Cytonn Investments a month to recruit a new trustee for its fund mobilising arms, Cytonn Asset Managers Limited and Cytonn Unit Trust. Justice Grace Nzioka also directed the regulator, Capital Markets Authority (CMA), to issue a fresh notice to Cytonn within 30 days as [&hellip;]<\/p>\n","protected":false},"author":84,"featured_media":16392,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,8],"tags":[6205,731],"class_list":["post-16390","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-homepage-english","tag-cytonn-investment","tag-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.1 (Yoast SEO v27.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>High Court extends a 30-day relief to Cytonn Investment - kenya<\/title>\n<meta name=\"description\" content=\"The High Court has given property dealer Cytonn Investments a month to recruit a new trustee for its fund mobilising arms, Cytonn Asset\" \/>\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\/high-court-extends-a-30-day-relief-to-cytonn-investment\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"High Court extends a 30-day relief to Cytonn Investment\" \/>\n<meta property=\"og:description\" content=\"The High Court has given property dealer Cytonn Investments a month to recruit a new trustee for its fund mobilising arms, Cytonn Asset\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/kenya\/economy\/high-court-extends-a-30-day-relief-to-cytonn-investment\" \/>\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=\"2020-10-23T20:41:31+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/kenya\/sites\/28\/2020\/10\/dande.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"960\" \/>\n\t<meta property=\"og:image:height\" content=\"480\" \/>\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\/high-court-extends-a-30-day-relief-to-cytonn-investment#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/high-court-extends-a-30-day-relief-to-cytonn-investment\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"High Court extends a 30-day relief to Cytonn Investment\",\"datePublished\":\"2020-10-23T20:41:31+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/high-court-extends-a-30-day-relief-to-cytonn-investment\"},\"wordCount\":366,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/high-court-extends-a-30-day-relief-to-cytonn-investment#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/kenya\/sites\/28\/2020\/10\/dande.jpg\",\"keywords\":[\"Cytonn Investment\",\"High Court\"],\"articleSection\":[\"all news\",\"economy\",\"homepage-english\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/kenya\/economy\/high-court-extends-a-30-day-relief-to-cytonn-investment#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/high-court-extends-a-30-day-relief-to-cytonn-investment\",\"url\":\"https:\/\/www.africa-press.net\/kenya\/economy\/high-court-extends-a-30-day-relief-to-cytonn-investment\",\"name\":\"High Court extends a 30-day relief to Cytonn Investment - 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