CMA bars fund managers, stockbrokers from cash business

The Capital Markets Authority (CMA) has ordered fund managers and stockbrokers who have been managing billions of shillings for wealthy clients at a fee to get out of the business, leaving it exclusively in the hands of commercial banks.

The CMA, in a circular copied to the Kenya Association of Stockbrokers and Investment Banks (KASIB), the Fund Managers Association (FMA) and the Central Bank of Kenya (CBK), barred fund managers and stockbrokers from offering cash management services to clients, terming the services illegal.