The Capital Markets Authority (CMA) has suspended the Money Manager license of Trade Sense Limited for 90 days due to failure to comply with various regulatory requirements. The decision underscores CMA’s commitment to protecting investors and ensuring that all licensed entities uphold the integrity and stability of Kenya’s capital markets.
According to CMA Chief Executive Officer Wyckliffe Shamiah, the suspension was necessary as Trade Sense Limited had failed to meet essential governance, financial, anti-money laundering, and operational compliance standards. “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,” Shamiah stated.
CMA has been engaging with the management of Trade Sense Limited since 2023 to resolve multiple regulatory breaches. However, the company has not demonstrated adequate compliance, prompting the enforcement action. CMA’s intervention aligns with its mandate to safeguard investor interests and maintain orderly capital markets.
The decision is based on Section 13 B (4) of the Capital Markets Act, which allows the Authority to impose interim measures of up to three months if there is a risk of irreparable damage to investors or the capital markets. This provision empowers CMA to take swift action while conducting further inquiries.
During the suspension period, CMA will conduct a thorough review to determine whether to lift the suspension or impose additional regulatory actions. This could include extending the suspension or revoking Trade Sense Limited’s license altogether if the firm fails to address the identified regulatory breaches.
A money manager is an entity licensed by CMA to manage an individual’s or institution’s online foreign exchange portfolio. Unlike brokerage firms, money managers are prohibited from receiving client funds directly but are granted trading access to clients’ accounts through an online foreign exchange broker.
CMA’s enforcement actions send a strong message to other market participants about the importance of compliance with regulatory requirements. Investors are advised to exercise due diligence when engaging financial service providers to ensure their funds are managed within the framework of established legal and regulatory guidelines.
