Four investment advisers locked out of CMA licensees list
Tsavo Securities linked to blacklisted Fred Mweni (pictured) among those not in CMA list. Photo/FILE
Controversial investment advisory firm Tsavo Securities is among four firms that will not be licensed this year, following what the Capital Markets Authority (CMA) called voluntary closures.
CMA said in a gazette notice that two other investment advisors Franklin Management and Executive & Corporate Advisory Services (K) Limited will also not be licensed this year.
The notice dated February 25 and published on Friday also showed that Equatorial Commercial Bank would not be licensed as an authorised depository.
“Notice is given to members of the public to raise with the said companies any unresolved and outstanding issues relating to their engagement in capital markets activities within 45 days from the date of publication of this notice,” read the notice signed by CMA acting chief executive Paul Muthaura.
Tsavo Securities was formerly headed by bonds dealer Fred Mweni who was blacklisted by CMA in December 2012 on grounds that he was blocking investigations into irregular trading of bonds.
Mr Mweni was accused of theft of Treasury bonds, which led to his suspension from being the firm’s managing director.
The listing of Franklin Management among the firms which will not be licensed in 2014 looks set to bring to the closure of one of the more protracted tussles between the regulator and a market player in recent times.
In a letter dated October 23, 2013, the firm’s CEO Andrew Franklin notified CMA that the firm would not be renewing its investment advisor licence for 2014.
The company had sought exemption from several governance requirements such as the appointment of a chairman and independent directors to oversee the management.
It had also differed with the regulator on the need for recapitalisation, arguing that it was too small to require the extra cash and bureaucracy.
Equatorial Bank wound up its investment banking arm in 2011 due to difficulties in meeting regulatory requirements and failure to clinch deals, which kept it in losses.
The investment bank arm had been in operation for nearly two years.
CMA also gazetted the list of licensees for 2014, which includes 12 investment banks, 10 stockbrokers, 23 fund managers and 16 investment advisors.
Fourteen banks were licensed to act as authorised depositories, with 16 approved collective investment schemes and 10 approved employee share ownership plans (ESOPS).
The gazette notice lists Centum Asset Managers and UAP Investment Limited as licensed Real Estate Investment Trust (REIT) managers, with the additional three companies licensed last week likely to appear in a supplementary licensees notice.
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