The Capital Market Authority (CMA) in Rwanda has warned the general public against working with unlicensed entities, individuals who are carrying on or purporting to carry on offering, promotion or selling of capital market services or products including online forex trading.

CMA has released a statement indicating that recent assessment detected some unlicensed entities purporting to offer its services and urged the general public to be cautious.

“In line with its investor protection mandate, the Authority hereby cautions the general public about unlicensed entities of individuals who are carrying on or purporting to carry on offering, promotion or selling of capital market services or products including online forex trading,” reads the statement in part.

“These businesses claim to be duly licensed in Rwanda and often promote investment opportunities through social media. CMA informs investors that it has not yet licensed any entity to provide online forex trading brokerage services in Rwanda and any dealings in this type of investment remain at the investor’s own risk,” adds the statement.

CMA is the only regulatory public institution established by Law, with the responsibility, among others, to protect investors in the capital market by promoting and ensuring an orderly, fair, transparent and efficient capital market in Rwanda.

Among the tools used to achieve its mandate, the CMA authorizes, through licensing businesses intending to offer, promote or sell capital market services or products to investors.

CMA has urged investors to always ascertain whether the engaging firms are licensed to operate capital market businesses in Rwanda before accepting to deal in their proposed investment products or services.

The Authority has further reminded individuals or entities conducting capital market business without license that they will be punished as per provisions of the Law regulating capital market in Rwanda.

AE News