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PRESS RELEASE

 

                                                                                                     

CMA exits first Robo-Advisor from Regulatory Sandbox

 

Nairobi, 31 March 2022…The Capital Markets Authority (CMA) has granted a ‘No Objection’ to Fourfront Management Limited to roll out in the mass market a Robo-advisory solution which provides automated investment advice through use of advanced data analytics. The approval follows successful testing of the innovation in the CMA Regulatory Sandbox.

The No-Objection approval is subject to Fourfront Management Limited’s compliance with the Capital Markets Act, relevant regulations, and the Framework to Roll-out a Robo-Advisory Solution.

The introduction of a Robo-advisory platform, the first in Kenya’s capital markets to be assessed by the Authority, is a significant milestone in the deepening of the capital markets through digitizing the investment advisory process.

‘This innovation is going to enhance and transform traditional investment advisory offering to the retail market segment in Kenya and the East African region. We expect the Robo-advisor to spur greater participation in the capital markets by retail investors, particularly those with a preference for digital solutions’, said CMA Chief Executive Mr. Wyckliffe Shamiah.

Fourfront Management Limited was admitted to the CMA Regulatory Sandbox in September 2020 becomes the fifth firm to successfully exit the CMA Regulatory Sandbox, after Pezesha Africa Limited, Genghis Capital Limited, Innova Limited and Central Depository and Settlement Corporation.

 

ENDS

 

 

BACKROUND INFORMATION ON THE CAPITAL MARKETS AUTHORITY

The Capital Markets Authority (CMA) was set up in 1989 as a statutory agency under the Capital Markets Act Cap 485A. It is charged with the prime responsibility of both regulating and developing an orderly, fair and efficient capital markets in Kenya with the view to promoting market integrity and investor confidence. The regulatory functions of the Authority as provided by the Act and the regulations include; Licensing and supervising all the capital market intermediaries; Ensuring compliance with the legal and regulatory framework by all market participants; Regulating public offers of securities, such as equities and bonds & the issuance of other capital market products such as collective investment schemes; Promoting market development through research on new products and services; Reviewing the legal framework to respond to market dynamics; Promoting investor education and public awareness; and Protecting investors’ interest. For more information, please contact: Antony Mwangi, Head of Corporate Communications on This email address is being protected from spambots. You need JavaScript enabled to view it.

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