The Capital Markets Authority (CMA) has intensified the fight against crimes in the capital markets industry with the Collective Investments and Scheme products as the main target.
According to the Authority, this will also be top on the agenda of the events to mark the World Investor Week 2023 that runs through October 8.
CMA said: “As Ugandans seek to invest their money, they should undertake research before investing in any product or service, and also invest with licensed and regulated firms.”
Dickson Ssembuya, the CMA Director of Research and Market Development, warned prospective investors to be wary of unsolicited investment offers, diversify their investment portfolios to reduce risk as well and monitor their investments regularly.
However, Ssembuya called for, “Collective Investment Schemes to remain the best investment decision to make due to the various benefits it has compared to other investments.”
Recently, the CMA issued a ‘caveat emptor’ after receiving inquiries seeking guidance from members of the public regarding investment opportunities touted by companies like Capital Chicken Limited, The Mall Fund Limited and Veta Plan Chicken.
The CMA advised the public that the said entities have not sought approval from the Authority to offer investment contracts to the general public.
“It is important to note that in the absence of regulatory oversight, investors in unregulated investment activities have limited resources in the event of unfair treatment, loss or other challenge faced in the investment journey,” CMA cautioned the public.
The CMA encouraged members of the public to participate in investment opportunities approved or regulated by the CMA or any other relevant regulator.