Mr David Luusa joined the Central Bank of Kenya in April 2020 and was appointed Director, Financial Markets Department (FMD). He serves on the Board of The Capital Markets Authority as an alternate to the Governor of the Central Bank of Kenya.
Prior to joining the Bank, David served at Standard Chartered Bank as a member of the Executive Committee and Head of Financial Markets in the East Africa region. He has extensive banking experience across different markets in Africa and Europe holding senior leadership responsibility within financial markets. He holds a Master of Arts in degree in Economic Science from the University of Aberdeen and serves on the Monetary Policy Committee of the Central Bank of Kenya.
CMA cautions investors against investing through unlicensed firms offering Fund Management and Investment Advisory Services
Nairobi, 20 April 2020…In line with its investor protection mandate, the Capital Markets Authority (CMA) has cautioned investors against investing through unlicensed and unapproved entities.
The CMA Acting Chief Executive, Mr Wyckliffe Shamiah, advised investors to only invest through licensed and approved entities to enable them get protection offered by the Authority through the capital markets legal and regulatory framework. Mr. Shamiah observed; ‘’Investors who invest in unregulated and unapproved entities risk loss of their investments with no recourse afforded to them under the capital markets regulatory framework’’.
Following numerous enquiries received by the Authority regarding the licensing status of the Cytonn Investment Group, Mr. Shamiah said, ‘’the only licensed entity is Cytonn Asset Management Limited, which is licensed as a Fund Manager and a Real Estate Investment Trust (REIT) Manager. The funds managed by the entity under the approved Collective Investment Schemes are; 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.
Investors are advised to check correctly the names of the licensed and approved entities’’.
Mr. Shamiah advised investors to confirm the licensing status of any firms offering services in the capital markets industry with the Authority since it has been noted that some of unlicensed and unapproved entities are pitching investment opportunities as if they are licensed. He added; ‘’investors should undertake due diligence and check the license status of any entity marketing investment opportunities and purporting to be licensed by the Authority from the CMA website www.cma.or.ke’’.
The Authority will take appropriate enforcement action against any persons or entities illegally conducting business in the capital markets industry without a license. Members of the public who have been affected or become aware of such illegal entities are advised to report to the Authority or to the Capital Markets Fraud Investigation Unit.
BACKGROUND INFORMATION ON THE CAPITAL MARKETS AUTHORITY
The Capital Markets Authority (CMA) was set up in 1989 as a statutory agency under the Capital Markets Act Cap 485A. It is charged with the prime responsibility of regulating and developing an orderly, fair and efficient capital markets in Kenya with the view to promoting market integrity and investor confidence. The regulatory functions of the Authority as provided by the Act and the regulations include: Licensing and supervising all the capital market intermediaries; Ensuring compliance with the legal and regulatory framework by all market participants; Regulating public offers of securities, such as equities and bonds & the issuance of other capital market products such as collective investment schemes; Promoting market development through research on new products and services; Reviewing the legal framework to respond to market dynamics; Promoting investor education and public awareness; and Protecting investors' interest.
The International Organization of Securities Commission (IOSCO) is the leading international policy forum for Securities regulators and is recognized as the global standard setter for securities regulation. The Organization’s membership regulates more than 95% of the world’s securities market in more than 115 jurisdictions and it continues to expand. IOSCO aims to cooperate in developing, implementing and promoting adherence to internationally recognized and consistent standards of regulation, oversight and enforcement in order to protect investors, maintain fair, efficient and transparent markets and seek to address systemic risks; Secondly is to enhance investor protection and promote investor confidence in the integrity of securities markets, through strengthened information exchange and cooperation in enforcement and lastly to exchange information at both global and regional levels on their respective experiences in order to assist the development of markets, strengthen market infrastructure and implement appropriate regulatory frameworks.
The World Investor week is a global outreach by securities regulators aimed at raising awareness about the importance of investor education and protection. The WIW 2019, which is the third edition of an initiative of the International Organization of Securities Commissions (IOSCO), will see countries in six different continents executing investor focused activities.
In last year’s WIW 2018, IOSCO members and stakeholders from some 90 jurisdictions on six continents undertook a range of activities, such as offering investor-focused information and services, promoting contests to increase awareness of investor education initiatives, organizing workshops, and conferences and launching local/national campaigns in their respective jurisdictions.
During WIW 2019, Capital Markets Authority which is the Kenyan coordinator, will conduct engagements targeting the public, vernacular radio campaigns, a social media campaign and a scavenger hunt competition on the Resource Centre Portal. These activities are as outlined below:
Its back it’s bigger, its better!
In line with creating incentives for the youth to increase their knowledge and attitude towards the capital markets, the Authority will be running the 3rd edition of the Scavenger hunt competition that is open to all members of the public. To participate, please visit the Resource Centre portal on: www.cmarcp.or.ke and attempt the 10 simple questions. To answer these questions you will be required to scavenge through the portal for the specific answers.
There will be fabulous prizes to be won by participants through a raffle from correct responses to include:
The Scavenger Hunt competition officially closes on Sunday 6th October 2019
An informed investor is a protected investor!!!!!