The Capital Markets Authority (CMA) has announced the suspension of the Money Manager license issued to Trade Sense Limited for a period of ninety days for failure to comply with various regulatory requirements.
The enforcement action underpins CMA’s mandate to protect investors and ensure the proper conduct of all licensed entities and capital markets institutions to maintain order and integrity in the capital markets.
“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 ’’, said the CMA Chief Executive Officer, Wyckliffe Shamiah.
CMA has been engaging the management of Trade Sense Limited since 2023 to address various regulatory breaches that had been identified. The regulatory breaches include non-compliance with governance, financial, Anti-Money Laundering and operational requirements.
According to Section 13 B (4) of the Capital Markets Act “the Authority may, where satisfied that the capital markets or an investor shall suffer irreparable damage as a result of an activity under subsection (1), impose an interim measure for not more than three months to prevent further damage pending completion of an inquiry”.
During the 90-day suspension period, CMA will conduct a review to determine whether to lift the suspension or take further regulatory or enforcement action as may be necessary.
A money manager is an entity licensed by CMA to engage in the business of managing the online foreign exchange portfolio of an individual or institutional investor in return for a fee based on a percentage of assets under management. However, a money manager is prohibited from receiving clients’ funds but only granted trading rights access to the funds deposited by the client directly to the client’s online trading account through the online foreign exchange broker.
By Claire Wanja
