The Capital Markets Authority (CMA) has suspended the money manager license issued to Trade Sense Limited for 90 days due to failure to meet various regulatory requirements. The suspension, effective from March 3, 2025, aims to safeguard investor interests and maintain market integrity.
The enforcement action highlights the CMA’s role in ensuring compliance among licensed entities and protecting capital market investors. “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 CMA Chief Executive Officer, Mr. Wyckliffe Shamiah.
Since 2023, CMA has been engaging with Trade Sense Limited’s management to address several regulatory breaches. These issues include non-compliance with governance, financial management, anti-money laundering policies, and operational requirements.
According to Section 13 B (4) of the Capital Markets Act, the authority can impose an interim measure, such as a temporary suspension, when there is a risk of irreparable damage to investors or the market. The 90-day suspension allows CMA to review the situation and decide whether to lift the suspension or take further enforcement measures.
During the suspension period, Trade Sense Limited is prohibited from managing any client portfolios or engaging in online foreign exchange transactions on behalf of investors. A money manager, licensed by CMA, is typically allowed to manage online forex portfolios for individuals and institutions in exchange for a percentage of assets under management. However, they are not permitted to receive clients’ funds directly but only facilitate trading rights to those funds.
CMA remains committed to strengthening market oversight and ensuring that all capital market players adhere to the highest regulatory standards. The outcome of the ongoing review will determine the next steps for Trade Sense Limited’s future in the sector.
