Capital Markets Authority admits seven firms in regulatory sandbox

Wycliffe M. Shamiah, Acting Chief Executive of the Capital Markets Authority [Courtesy]

The Capital Markets Authority (CMA) has facilitated the admission of seven firms in the CMA Regulatory Sandbox since its launch in March 2019.

This follows 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.

The regulator on Monday said it has received 24 applications in robo-advisory, blockchain technology, tokenization of real estate, providing access to global stocks, crowdfunding platforms, Electronic Know Your Customer platform, Screen-Based Security Lending and Borrowing platform, Regtech solutions and Data Analytics.

”The Authority’s commitment to the introduction of the sandbox is aligned to the Capital Market Master Plan (CMMP, 2014-2023) which identi?es technological innovation as one of the five centres of excellence of the Kenyan capital markets,’’ said Wyckliffe Shamiah

He observed that CMA’s keen interest is 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. 

“CMA has been at the forefront of implementing initiatives to stimulate and support the growth of FinTech and innovation within Kenya’s capital markets. In line with its facilitative role, 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,’’ he added.

The report covers some of the key milestones achieved including SMEs bene?tting from funding through the crowdfunding platform operated by Pezesha Limited. It also covers the key lessons the sandbox review committee has learnt, opportunities identified so far and how these will be entrenched to make the future sandbox engagements better. 

The Authority has also gathered insights to inform the development of a facilitative regulatory framework for Fintechs.