in less than a period of one year, two owner managed stockbrokers have seen red at the NSE. Francis Thuo was closed late last year and in less than six months,Nyaga Stock brokers is now under a statutory manager.The latter is also being probed for engaging in fraudulent disposal of clients stocks without approval from them.
Do you think that CMA acted too liitle too late? some of these owner managed brokerage firms are run by incompetent staff who are underpaid and i think its time guys started scrutinizing the members of staff before you go transacting business with them. some do not even have research depts. they just want to buy and sell and earn their commission.

quote:

Originally posted by kariúki wa kíhia:
in less than a period of one year, two owner managed stockbrokers have seen red at the NSE. Francis Thuo was closed late last year and in less than six months,Nyaga Stock brokers is now under a statutory manager.The latter is also being probed for engaging in fraudulent disposal of clients stocks without approval from them.
Do you think that CMA acted too liitle too late? some of these owner managed brokerage firms are run by incompetent staff who are underpaid and i think its time guys started scrutinizing the members of staff before you go transacting business with them. some do not even have research depts. they just want to buy and sell and earn their commission.

Wa Kihia,
Much as I agree with you about these owner managed outfits, even the ones you would think would be run professionally still leave a lot to be desired. I have an unresolved case with one of them that involved fraudulently disposing shares without notifying the concerned.

quote:

Originally posted by Ngûnjiri®:

quote:

Originally posted by kariúki wa kíhia:
in less than a period of one year, two owner managed stockbrokers have seen red at the NSE. Francis Thuo was closed late last year and in less than six months,Nyaga Stock brokers is now under a statutory manager.The latter is also being probed for engaging in fraudulent disposal of clients stocks without approval from them.
Do you think that CMA acted too liitle too late? some of these owner managed brokerage firms are run by incompetent staff who are underpaid and i think its time guys started scrutinizing the members of staff before you go transacting business with them. some do not even have research depts. they just want to buy and sell and earn their commission.

Wa Kihia,
Much as I agree with you about these owner managed outfits, even the ones you would think would be run professionally still leave a lot to be desired. I have an unresolved case with one of them that involved fraudulently disposing shares without notifying the concerned.

This is not good news at all, especially because most people invest on shares...

Ngunjiri, please give us a name otherwise one of us might be a victims soon.

the experience i had from Discount made me transfer to Dyer and i havent had any trouble with Dyer. i also think CMA is sleeping on the job.i am not sure if they conduct any compliance vigil or do some on site supervisory coz i dont see how these guys took so long to act and yet investors had been tabling their complaints but CMA, it seems, can only come in to take over after the brokers has 'eaten' the investors money.
It is time CMA acted. we need to see more of their 'hands on' supervisory and regulation.
lets black list all the 'bad' brokers here

I regard anything to do with inSURANCE AND THEIR BROKERS AS LEGALISED WHITE COLLAR CRIMES.

BE WARRY of ANY MONETARY INVESTMENT OF ANY KIND THAT HAS TO WORK WITH THE HELP OF BROKERS.

all or most of these are legalised white collar crimes.

the fine prints and brokers deliberate disinformations are these legalised criminals biggest gun. the world and africa in general need to do something about this legal white collar crimes, by insurance and financial companies.

the use of fine prints should be banned world-wide. the western countries are the biggest beneficiary of these finacial crimes by insurance and finacial companies. you should see the type of poor people these companies have defrauded for centuries now.

am sure most of you here have been victims of investment brokers or know of a certain victim/s.

be warry with your chums/kopex/nyadu when it come to investment companies.

sajini should have cut loose his loss. there is a very big posibility that, he will 'itana more', when pay day come with his new broker company.

a system should be invented where by all types of brokers sign with potential investor/client an agreement form detailing all the do's and don't of the agreement in plain english or any other language.

sajini can you tell us how that investment of yours work? please no jargons.

This message has been edited. Last edited by: Beste,

Beste eti sajini afanye?

i dont think brokers/investment banks have any fine prints. there are merely trading agents of listed companies and corporate and government securities.They are supposed to only intermediate between buyers and sellers and thereby only act upon being given instructions by their clients.The beef is when they act bila any instructions from the investors and these has no fine prints. what i am saying is, when these brokers engage in fraudulent disposal of client stocks without their clients' consent,then the CMA should move very fast to investigate(when such cases are reported) and penalise the Broker and the employee who was involved in that'deal' being barred from ever working in any financial intemediary companies.

http://www.bdafrica.com/index.php?option=com_content&ta...&id=6335&Itemid=5812

This message has been edited. Last edited by: kariúki wa kíhia,

Another 4 brokers under CMA scrutiny:

http://www.bdafrica.com/index.php?option=com_content&ta...&id=6402&Itemid=5812

yeah i have just seen it. its time those who had given cash to these brokers for any purchases to rush and get their cash before they go down.

quote:

Originally posted by Gacheri:
This is not good news at all, especially because most people invest on shares...

Ngunjiri, please give us a name otherwise one of us might be a victims soon.

Gacheri,
I think it will not be fair to comdemn the broker in question wholeheartedly just because maybe one "rotten fish" or two messed with client's shares. These are shares I was following for an investor who was not able to come to Nairobi so often, plus I had introduced him to that particular broker. Again am happy that after i took my case up with senior management, they acted quickly and it's bearing fruit. The shares have been re-credited to the client's account.


But I can vouch for the broker I personally deal with; African Alliance Kenya Securities (AAKS) who to me have been offering excellent service since I discovered them. They also have an extra automated service where every single transaction that takes place with your account is communicated to you the client via an sms same day and an email follows the following day. This to me is exceptional services as it helps detect such things as trading in clients shares without their knowledge.

And yesterday they informed us the clients that they had opened a branch office in CBD for easy access.

quote:

I think it will not be fair to comdemn the broker in question wholeheartedly just because maybe one "rotten fish" or two messed with client's shares.

one rotten fish may spoil the rest of the fish in that basket.
i highlighted my experience with Discount and see, they are now in the papers.i believe there are more undetected cases like urs,ngunjiri. its only that u were quick to detect something was fishy.otherwise beste yako angeumia pia.

an insider told me that what these rascals do is to mess up with the system so that when u get a brokers statement, it will read 'credit' lakini shares zako ziliuzwa kitambo. IT guys are the ones who are scheming all these frauds

How does the statement that comes from CDS help? One gets a statement every month if there have been any transactions in the CDC account. It would be good if we, as investors can scrutinize our accounts and query every movement in the CDS account. But again not every investor understands the statement. But, do the “rotten fish” have a way of disposing shares without going through the CDS account?

Again, if the stock brokers were to give clients/investors statements, how would it help? I am looking at a case where shares have been sold without written consent -which can easily happen- because even with the good brokers, we sometimes give instructions on phone. If the client sees many transactions, it would be in their interest to know why all the movement.

CMA needs to play a greater role in protecting the investors fund by ensuring that brokers have good internal control systems that will not be manipulated by the few “rotten fish” inside. I just picked this from the article above…

“…..The regulator (CMA) is also enjoying additional sanction powers which came into effect on January 1. In his 2007-8 budget speech, Finance minister Amos Kimunya said the Government was “conscious of the need to protect the integrity of the stock exchange and to protect the small investors from unscrupulous market players.”

The problem all comes from the systems that the brokers use and CMA – after all we pay a CMA levy with every transaction - Should take action against those caught fiddling with cliets money. I would say CMA is not doing justice to investors.

This message has been edited. Last edited by: Ngechi,

[QUOTE]Originally posted by Ngechi:
How does the statement that comes from CDS help?

This is very scaring, however, its good that these issues are coming to light now....

Keep us all updated.....this is uici proper!!

quote:

Originally posted by Gacheri:
[QUOTE]Originally posted by Ngechi:
How does the statement that comes from CDS help?

This is very scaring, however, its good that these issues are coming to light now....

Keep us all updated.....this is uici proper!!

It helps in that you can see all the transactions that have taken place in your account. Meaning that if shares are sold, this should reflect in the statement and if you had no intentions of selling, you can follw up with the broker.