Regulatory Alerts2024-06-28
Capital Markets Authority Highlights Unit Trusts for Cash Flow Generation and Cybersecurity Risks
Denis Kizito, Director of Market Supervision at the Capital Markets Authority, explains that unit trusts offer superior daily cash flow generation compared to illiquid real assets, particularly for retirees. He outlines the regulatory safeguards ensuring investor safety through segregated custodian accounts and risk distribution by licensed fund managers. Additionally, Kizito identifies cybersecurity as the primary threat to the rapidly growing Shs2.7 trillion unit trust sector, urging enhanced IT audits and authorization protocols.
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