Written by 10:42 am Sports

Three firms admitted to CMA Regulatory sandbox – KBC


Three financial technology firms have been admitted to the Capital Markets Authority’s Regulatory Sandbox to live test innovative solutions with the capacity to deepen and enhance the efficiency of capital markets.

The Regulatory Sandbox serves to continuously improve CMA’s understanding of emerging technologies as well as the risks and opportunities that the innovations portend for investors, financial institutions and the regulator.

In a statement, Capital Markets Authority Chief Executive Paul Muthaura said: “The admission of the three firms is an important milestone noting that the Authority had set itself a target to admit five firms to the Regulatory Sandbox by 2023.”

Innova Limited has been approved to test its cloud-based data analytics platform designed for use by investors, fund managers, custodian banks, actuaries, pension administrators and regulators.

Get breaking news on your Mobile as-it-happens. SMS ‘NEWS’ to 22163

The second fintech, Pezesha Africa Limited has been approved to test an internet-based crowd-funding platform through which investors can provide loan facilities structured as debentures for Small and Medium Enterprises.

The third fintech firm admitted has elected to remain anonymous during its three months test period, except to its closed group of test subjects, an option provided in the Regulatory Sandbox PGN.

Muthaura says Innova and Pezesha will be updating the Authority on the milestones achieved, challenges faced and mitigation measures implemented in line with the test plans submitted to the CMA during the application process.

For admission, Fintech firms are assessed based on their intent to offer innovative products, solutions with the potential to deepen Kenya’s capital markets after exit from the Sandbox.

Participants in the Sandbox are required to comply with minimum regulatory requirements such as submission of test plans, testing metrics, performance indicators and remedial measures for test clients.

Upon exit from the Sandbox, participants could be granted a license or approval to operate in Kenya subject to compliance with existing legal and regulatory requirements.


Tell Us What You Think

(Visited 1 times, 1 visits today)