Ugandans have been warned against taking part in unapproved investment schemes.

The Capital Markets Authority (CMA) says investing in such schemes is illegal and is likely to lead to loss of money.

According to CMA management, there are companies and individuals issuing invitations to the general public to invest in unlicensed schemes.

In a statement issued by Capital Markets Authority on March 16, 2023, unidentified companies and individuals have been advertising in the media (newspapers and social media platforms) claiming that there is a guaranteed return on a monthly and quarterly basis.

The warning against the persons allegedly raising money from the public is contained in the New Vision edition of March 16, 2023.

The management says it is an offence to raise money from the public without the approval of the authority and warned that such individuals carrying out the transactions are liable to criminal prosecution.

“The authority is in the receipts of complaints relating to money lost through investing in such unlicensed investment schemes. The authority, therefore, hereby continues to strongly caution the general public against issuing invitation to the public,” the notice states.

Capital Markets Authority clarified that any person seeking to raise money from the public must be licensed by the Authority under Capital Authority Act of 2003.

The management further notes that all persons authorised to operate capital markets business are listed on their website.

The mandate of CMA

CMA operate its legal mandate by promoting confidence in the capital markets, ensuring honesty and transparency in capital markets transactions.

It is further mandated to carry out investor education and protect investors and reduce systematic risk.