The Capital Markets Authority (CMA) has admitted seven firms to its Regulatory Sandbox.
The innovation hub allows firms to test new products for possible rollout in the local capital markets.
The move is part of its strategic priority to leverage on technology across the capital markets value chain, as espoused in its 2018-2023 Strategic Plan, following the approval of the Regulatory Sandbox Policy Guidance Note (Regulatory Sandbox PGN) in March 2019.
The firms admitted into the Regulatory Sandbox are Pezesha Africa, Innova Limited, Genghis Capital Limited, the Central Depository and Settlement Corporation (CDSC), Pyypl Group Limited, Belrium Kenya Limited and Four Front Management.
CMA Chief Executive Officer, Mr. Wycliffe Shamiah has said that the Authority’s commitment to the introduction of the sandbox is aligned to the Capital Markets Master Plan which identiﬁes technological innovation as one of the five centres of excellence of the Kenyan capital markets.
“CMA’s keen interest to proactively review its supervisory and regulatory model to take into consideration the fast-changing environment across the capital markets’ product and services design, infrastructure, and supervision,” said Mr. Shamiah.
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While launching the CMA Regulatory Sandbox report, Mr. Shamiah added that CMA has been at the forefront of implementing initiatives to stimulate and support the growth of FinTech and innovation within Kenya’s capital markets.
“The Authority seeks to provide a conducive regulatory environment for the deployment of innovative FinTech and business models that have the potential to deepen capital markets in Kenya,” Mr. Shamiah stated.
The report shares insights on the next steps, including the need to develop an adaptable and responsive regulatory framework to support FinTech and innovation in the capital markets; working with stakeholders to develop a market-wide regulatory framework for crowdfunding.
The Regulatory Sandbox allows live testing of innovations under a less onerous regulatory regime and is expected to attract Fintech companies and capital markets licensees such as stockbrokers, fund managers, investment advisors and collective investment schemes to test the application of technology on financial services.