The High Court has this morning 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 onboarding new clients.
In early August, CMA had directed the licensed fund manager to change its name saying the directive is in line with the Capital Markets Act. According to CMA’s Chief Executive Wyckliffe Shamiah, the name
“The name change will do away with the confusion caused by the similar name used by the unregulated Cytonn Investment Management Ltd,” CMA Chief Executive Wyckliffe Shamiah had said in a statement.
It is not clear what CMA was looking to achieve with the change of name directive. Speaking to a Cytonn client, she wondered, “But CMA wants them to change their name to what now? They are Cytonn, which 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 our clients to explain to us why they want a name change? We don’t understand the issue.”
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Cytonn claims that this was an act of economic sabotage from CMA. Reached for comment, Edwin Dande, the Cytonn CEO said, “This was just another act of economic sabotage. 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?”
“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.” Added Dande.