WARNING AGAINST FRAUDULENT AND UNLICENSED FINANCIAL SCHEMES AND OPERATORS

The Capital Markets Authority (CMA) has, with great concern, noted an increase in the number of incidents relating to fraudulent operators and unlicensed financial schemes across the country. Such incidents include individuals or firms holding out as investment advisers and fund managers, as well as pyramid schemes operating physically and through online platforms, which seek to take cash deposits from unsuspecting members of the public with a promise of exceptional investment returns. The Authority is currently handling complaints which have been received through its formal channels and enforcement action has already been undertaken for some of them. We STRONGLY warn the general public to avoid seeking investment advice or dealing with any unlicensed persons. Those who chose to, do so at their own risk. The CMA Act gives the Authority powers to among other things, licence investment advisers, securities brokers and fund managers as well as grant approval to any entity that wishes to sell securities to the public. The Collective Investment Schemes (CIS) Act, 2003 also gives CMA powers to authorize the operation of a CIS as well as license CIS managers. Any person who undertakes any of these activities without approval or a license from the Authority is in breach of S.19 and S.30 of the CMA Act, and is liable to prosecution. Please note that all persons offering capital markets services (a list of which can be accessed on our website; www.cmauganda.co.ug) are required to have a VALID license or approval issued by CMA and displayed at their premises at all times. The public is urged to be vigilant and exercise utmost caution when making financial investments. We further remind you to send any complaints relating to such unlawful operators and activities through E-mail: ms@cmauganda.co.ug and appropriate action shall be taken against such persons.