The High Court has issued orders setting aside the directives issued by the Capital Markets Authority (CMA), which were directing Cytonn to change its name within 30 days or stop taking up new clients.
On August 6, 2021, CMA issued directives demanding that Cytonn Asset Managers Ltd (CAML) stops on-boarding new investors until it changes the names of its business and its regulated products.
According to CMA CEO Wycliffe Shamiah, the name change would do away with the confusion caused by the similar name used by the unregulated Cytonn Investment Management Ltd.
“But CMA wants them to change their name to what now? They are Cytonn, that would be deceitful because we know we are invested in Cytonn Money Market Fund, and we are happy with it. CMA should at least meet with us clients to explain to us why they want a name change? We don’t understand the issue,” said a Cytonn client.
According to Cytonn, the directive was an act of economic sabotage from CMA aimed at crippling the strides made so far in the money markets.
“This was just another act of economic sabotage. The CMA is so unlawful, so unprocedural, that they cannot win anything in a fair court. Given their demonstrated commitment to economic sabotage, I am sure they are drafting the next illegal directive, we are waiting for it. How do you call people out of maternity to appear physically within 24 hours and then proceed to sanction them for asking for a rescheduling?” noted Cytonn CEO Edwin Dande.
“I am beginning to wonder whether someone there is somehow gaining something from issuing these frivolous directives. They issue directives fully knowing they are illegal and won’t stand the faintest court scrutiny. It’s really strange.”
Cytonn has already initiated a process to oust Shamiah from the position, accusing him of favouritism and incompetence.