CMA defends move in legal battle over Cytonn’s trustee

The CMA had in a letter dated December 20 barred Cytonn from recruiting new clients until the firm gets a new trustee. FILE PHOTO | NMG

The Capital Markets Authority (CMA) has defended its move to bar Cytonn Asset Managers from taking new clients, arguing it took the drastic step to protect investors from potential risks.

In a reply to the petition pending before the High Court, the regulator said its directive was meant to protect the new clients, who may be exposed by the lack of a performing trustee in place and unknowingly expose them to commercial risk.

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