CMA Suspends Trade Sense Ltd License for 90 days
Nairobi, 04 March 2025…The Capital Markets Authority (CMA) has announced the suspension of the Money Manager licence issued to Trade Sense Limited for a period of ninety days for failure to comply with various regulatory requirements. The suspension is effective 03 March 2025.
The enforcement action underpins CMA’s mandate to protect investors and ensure the proper conduct of all licensed entities and capital markets institutions to maintain order and integrity in the capital markets.
‘’The suspension is due to the failure by Trade Sense Limited to comply with various regulatory requirements which undermines the duty to protect investors and foster market confidence ’’, said the CMA Chief Executive Officer, Mr. Wyckliffe Shamiah.
CMA has been engaging the management of Trade Sense Limited since 2023 to address various regulatory breaches that had been identified. The regulatory breaches include non-compliance with governance, financial, Anti-Money Laundering and operational requirements.
According to Section 13 B (4) of the Capital Markets Act “the Authority may, where satisfied that the capital markets or an investor shall suffer irreparable damage as a result of an activity under subsection (1), impose an interim measure for not more than three months to prevent further damage pending completion of an inquiry”.
During the 90-day suspension period, CMA will conduct a review to determine whether to lift the suspension or take further regulatory or enforcement action as may be necessary.
A money manager is an entity licensed by CMA to engage in the business of managing the online foreign exchange portfolio of an individual or institutional investor in return for a fee based on a percentage of assets under management. However, a money manager is prohibited from receiving clients’ funds but only granted trading rights access to the funds deposited by the client directly to the client’s online trading account through the online foreign exchange broker.
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BACKGROUND INFORMATION
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 both regulating and developing an orderly, fair, and efficient capital markets in Kenya with the view to promoting market integrity and investor confidence. CMA also regulates the commodity markets and online forex trading. 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. For more information, please contact: Antony Mwangi, Manager Corporate Affairs & International Relations on amwangi@cma.or.ke
