Mr Dande has accused CMA of engaging in an economic crime, terming the order ‘malicious, unreasonable, irregular and illegal,’ that will fold the high-yield fund he started running in December 2019.
Cytonn asset managers had invested about 80 per cent of the Cytonn High Yield Funds into Cytonn’s Alma and Applewood properties, drawing the attention of CMA and the June directive.
Investment and real estate company Cytonn is embroiled in another fight for its survival after the Capital Markets Authority moved to enforce regulations that the firm says will wipe out its high-risk investment fund.
The company moved to court for the second time this year to challenge a new directive from the market regulator that requires it to reduce investment of unit holders’ funds into its own property projects in line with rules that allow for only 10 per cent of such funds to be invested in insider-owned projects.
