Facebook Twitter Instagram
    Facebook Twitter Instagram
    Business Times
    Button
    Business Times
    Home»Corporate»Court Faults CMA For Sanctioning Cytonn, Gives 30-day Moratorium
    Corporate

    Court Faults CMA For Sanctioning Cytonn, Gives 30-day Moratorium

    Business TimesBy Business TimesOctober 23, 2020Updated:October 24, 2020No Comments2 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr Email
    Edwin Dande
    Share
    Facebook Twitter LinkedIn Pinterest Email

    The court has faulted the Capital Markets Authority (CMA) for barring Cytonn from onboarding new clients and unit holders following the resignation of the previous trustee for Cytonn Money Market Fund and the Cytonn Unit Trust Funds.

    High Court Judge Grace Nzioka found that the Capital Markets Act did not allow CMA to sanction money markets funds over trustee resignation.

    “In exercising this power, the Respondent directed the 1st Interested party (Cytonn Money Market Fund) not on board new clients or unit holders. It is argued that, that particular sanction is not provided for under section ii (3) of the Act (Capital Markets Act). That is correct. In my considered opinion, the 2nd Interested party (Cytonn Unit Trust Fund) cannot operate without a Trustee. However, in regulating them the Respondent should cite clearly, the relevant provisions of the law,” ruled Justice Nzioka.

    In court submissions, Cytonn CEO Edwin Dande termed the move by CMA as  an act of economic sabotage and unreasonable.

    Dande further argued that CMA did not give theCytonn Money Market’s Board a chance to inform its investors.

    Read: Cytonn Unit Trust Funds Register 67.4% Asset Growth Against an Industry Average of 7.5%

    He also argued that CMA failed to give adequate notice of the nature and reasons of the proposed administrative action which action adversely affected the rights and fundamental freedoms of each and every investment partner of Cytonn Group of companies.

    He also challenged 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.

    The court has given Cytonn 30 days to appoint a new trustee to replace Co-operative Bank.

    “In the interest of justice I order that:within thirty (30) days of the date of this order the Applicant shall take all the necessary steps to facilitate the recruitment of the new trustee. In the meantime, the Respondent is at liberty to issue a fresh thirty (30) days’ notice properly anchored in law,” ruled the Judge.

    For all the latest technology and business news from Kenya and the world, follow us on Twitter and like us on Facebook. Follow our Telegram Chanel https://t.me/businesstimeske

    Share this:

    • Tweet
    • WhatsApp
    • Telegram
    • More

    Related

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Business Times
    • Facebook
    • Twitter

    Business Times Kenya is the leading business blog in Kenya. Business Times disseminates business news, features, technology, politics, opinion and world's trending topics in a timely and objective manner. Contact us via [email protected] or [email protected]

    Related Posts

    New-style Traveller Centres Launch In Naivasha, With First Regional Electric Vehicle Charging

    May 20, 2022

    Naivas Opens Its 84th Branch In Kayole, Naivasha

    May 20, 2022

    Superior Homes Launches Reward Program For Investors

    May 20, 2022

    Leave A Reply Cancel Reply

    Ad
    Here’s The Latest
    • New-style Traveller Centres Launch In Naivasha, With First Regional Electric Vehicle Charging
    • Naivas Opens Its 84th Branch In Kayole, Naivasha
    • Superior Homes Launches Reward Program For Investors
    • ESG set to drive Real Estate Sector Forward – EAPI Summit
    • Absa Bank Kenya earns Global Recognition
    Buy the Latest POS Software
    • Naivasha Safari CentreNew-style Traveller Centres Launch In Naivasha, With First Regional Electric Vehicle Charging
    • Naivas SupermarketNaivas Opens Its 84th Branch In Kayole, Naivasha
    • Superior HomesSuperior Homes Launches Reward Program For Investors
    • Absa ESGESG set to drive Real Estate Sector Forward – EAPI Summit
    • AbsaAbsa Bank Kenya earns Global Recognition
    • DStvEnhancing Business in Pubs with Variety Sports
    • (no title) Post 7460
    • Mount Kenya University (MKU) Pro-Chancellor Dr Vincent Gaitho.MKU Pro-chancelor Pleads For Peace During Polls
    • Felix Tshisekedi President of the Democratic Republic of Congo (right) receives a memento from Prof. Isaac Macharia, Equity Group Board Chairman (left) and Dr. James Mwangi Equity Group Managing Director and CEO (center).Opportunities To Explore In The Vast DRC Market
    • Y15s SafaricomSafaricom Partners With vivo Smartphone To List New 4G Devices in Kenya
    • Safaricom CEO Peter NdegwaSafaricom Confirms Commercial Launch In Ethiopia As Revenue Hits Ksh281 Billion
    • PrudentialPrudential Kenya Signs Ksh10 Million Partnership To Provide Free Education To Disadvantaged Students
    • ZohoZoho Unifies Marketing Operations With Zoho Marketing Plus
    • Cold Season5 Tips To Help You Prepare For The Cold Season
    • Banking FraudBankers, Payments Firms And Retailers In Drive To Reduce Consumer Exposure To Fraud
    • Congratulations! Deputy President William Ruto Secures His First Win in Nairobi
    • dstv kenya self serviceDStv’s New Package Offers Lifeline To Hotel Industry
    • The promotion targeted Kenyans living and working in the USA. PHOTO| Justus KisavaAMG Realtors Unveils Winner Of Five-acre Piece Of Land In Bamba Shamba Promotion
    • Paul Icharia Kepfic Vice chairmanUS Pension Schemes Direct Over Ksh58 Billion to Africa
    • Boniface Mwangi‘Softie’, Boniface Mwangi’s Acclaimed Doccie Now On Showmax
    Facebook Twitter Instagram Pinterest
    © 2022 ThemeSphere. Designed by ThemeSphere.

    Type above and press Enter to search. Press Esc to cancel.