CMA licenses three fund managers as African Alliance drops investment bank


Capital markets

CMA licenses three fund managers as African Alliance drops investment bank

Wyckliffe Shamiah, CEO of the Capital Markets Authority (CMA), April 29, 2021. PHOTO | LUCY WANJIRU | NMG

The Capital Markets Authority (CMA) has approved three fund managers, bringing their number to 29.

African Alliance Kenya Asset Managers Limited, CPF Financial Services Limited and Kuza Asset Managers Limited will act as fund managers in the capital markets.

As fund managers, the three firms will be advisers who manage clients’ securities portfolios above an amount prescribed by the regulator from time to time.

Until this appointment, Africa Alliance Kenya Asset Managers Limited operated as a licensed investment bank providing local and on-the-ground investment banking services across the continent.

“The investment bank has notified the Authority of its intention to cease its investment banking activities, and we have accepted the request to revoke its investment banking license,” said Wyckliffe Shamiah, managing director of CMA.

“Upon issuing the approval, the Authority noted that it had revoked the license of the African Alliance Kenya Investment Bank to operate as a licensed investment bank,” Mr. Shamiah said.

The company will no longer offer investment banking activities, including underwriting new debt and equity securities for all types of companies, assisting in the sale of securities, or facilitating mergers and acquisitions, reorganizations or brokerage transactions for institutions and private investors.

The pension fund administrator, CPF Financial Services Limited and the asset management company Kuza Asset Managers Limited will implement its client’s investment strategy and manage transactions.

He will also oversee mutual funds or pension plans, manage analysts, and conduct research that will help make important investment decisions.

The entry of more fund managers is expected to increase competition for assets under management, with firms receiving fees charged as a fraction of the portfolios they oversee.

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