The Capital Markets Authority (CMA) has announced the suspension of the money manager license issued to Trade Sense Limited for 90 days.
In a statement on March 4, CMA Chief Executive Officer (CEO) Wyckliffe Shamiah said the suspension is due to the failure to comply with various regulatory requirements.
Shamiah stated that the suspension is effective March 3, 2025.
“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”, Shamiah said.
Shamiah said CMA has been engaging the management of Trade Sense Limited since 2023 to address various regulatory breaches that had been identified.
These regulatory breaches include non-compliance with governance, financial, Anti-Money Laundering and operational 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,” Shamiah said.
What Happens During the Suspension
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 go-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.
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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.
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Trade Sense Limited
Trade Sense Limited is a Kenyan investment firm that offers investors a different opportunity for investing in securities than the traditional securities that are offered.
The firm specializes in the management of forex trading to provide profitable diversification by means of the global currency market.
Segregated client accounts are used to hold clients’ funds to ensure transparency and security.
The forex broker is regulated by the CMA. Customers get a lot of control with their assets and can keep an eye on account activities 24/7 with the help of different resources.
The Company has over eight years of experience and uses a trading system to profit from global currency market inefficiencies.
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