CMA Permits Sanlam to Cease Operations After Pinebridge Buyout
Local non-bank financial services provider, Sanlam Kenya, has secured preliminary regulatory approval to officially cease the operations of its local Investment and asset management subsidiary Sanlam Investment Limited (SIL).
The acceptance of a request for revocation of license earlier submitted to the Capital Markets Authority (CMA) is part of the ongoing strategic efforts to align Sanlam’s investment and asset management businesses in the region.
Following the successful integration of Sanlam Investments Limited (SIL) operations into Sanlam Investments East Africa Limited (SIEAL), the Capital Markets Authority has accepted the request for SIL to officially cease operations of its licensed activities as these are now being carried out by SIEAL. This includes management of Sanlam’s range of Unit Trusts which have been managed by SIEAL since 1 January 2018.
Sanlam Investments East Africa Limited, Chief Executive officer, Mr. Jonathan Stichbury, while acknowledging the developments, noted that the CMA Chief Executive Paul Muthaura, in a Kenya Gazette Notice No 2548, dated 16 March 2018 has accepted the request for revocation of a license earlier issued to Sanlam Investment Limited. The approval provides impetus for ongoing efforts to integrate the businesses to deliver enhanced client and shareholder value.
“The recent developments are aimed at integrating our asset management businesses to build an asset manager in East Africa of scale backed by solid corporate governance structures and financial stability under the Sanlam brand,” Stichbury said.
Sanlam Investments East Africa Limited is a leading asset management company in East Africa with operations in Kenya and Uganda, where it is licensed by the Capital Markets Authority and the Retirement Benefits Authority in Kenya and the Ugandan Capital Markets Authority and the Uganda Retirement Benefits Regulatory Authority.
Sanlam last year reached an agreement to acquire a majority stake in PineBridge Investments East Africa Limited in Kenya (PIEAL); which has now been rebranded to Sanlam Investments East Africa Limited (SIEAL).