Cytonn vs CMA: The Capital Markets Authority (CMA) has raised alarm over unpaid dues by investment firm, Cytonn Investments. In a letter addressed to the Cytonn chief executive officer Edwin Dande, the Capital Markets Authority said that thirteen investors had claimed that investments worth Sh. 122,837,051 had matured, yet Cytonn was not honoring payments.
“The authority has noted with concern the 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 Limited,” the letter from CMA said.
It further added that there was concern over “the high risk posed by the aforementioned products to the investing public and inability by Cytonn Investments Management Limited to meet its obligations to its clients as and when they fell due.”
Earlier on, the CMA had barred Cytonn Asset Managers from bringing in new clients. In a letter dated December 20, the regulator had said it would discontinue Cytonn Asset Managers on boarding of new clients starting this month if the firm is unable to secure a new trustee to manage the fund. It added that part of the reason it barred Cytonn Asset Managers from bringing in new clients last month was to safeguard the wealth of prospective investors in Cytonn Unit Trust Fund.
Cytonn has been struggling to secure a new trustee to manage its fund following the resignation of Co-operative Bank. Cytonn vs CMA.