Capital Markets Authority (CMA) has admitted FourFront Management Limited to the Regulatory Sandbox, its fintech innovation and incubating hub, where it will test new products for possible rollout in the local capital markets. This brings the total number of firms admitted to the live-testing environment for capital markets innovations to seven.
The fintech firm which is a wholly owned subsidiary of Standard Investment Bank (SIB), a licensed investment bank, enters the mix to deepen innovation.
The CMA said FourFront Management proposes to test a robo-advisory solution targeting 100 investors during a four-month period.
The admission of FourFront Management Limited to the Regulatory Sandbox will build our capacity as a regulator, to respond to the impact and support implementation of new technologies in the capital markets value chain. Investment technology is one of the core ways financial technology is likely to disrupt Kenya’s capital markets.CMZ Acting Chief executive Wyckliffe Shamiah
In compliance with the CMA Regulatory Sandbox Policy Guidance Note 2019, FourFront will be required to provide periodic reports to the Authority on the implementation of its test plans, the achievement of test objectives, risks, and challenges observed during the testing period, and a final report prior to the expiry of its testing period.
FourFront Management Limited proposes to test a robo-advisory solution targeting 100 investors during a four-month period.
A robo-advisor is a digital platform that provides automated, algorithm-driven financial planning and investing services with little to no human interaction.Onlinecash
Typically, a Robo-advisor collects information from its clientele about their financial situation and future goals through an online survey and then leverages the data as a basis to offer investment advice and automatically invest client assets.
A key interest for CMA in leveraging technology to drive the capital markets value chain is the implementation of robo-advice technology.