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PRESS RELEASE

                                                                                                      

CMA admits Sortika App to the Regulatory Sandbox

 

Nairobi, 26 October 2022 The Capital Markets Authority (CMA) has admitted Altree Capital Kenya Limited, a licensed Fund Manager, to test the Sortika investment application and robo-advisory solution pursuant to the Capital Markets (Regulatory Sandbox Policy Guidance Note) March 2019. Altree Capital will operationalize the Sortika Investment Application and Robo-Advisory solution in partnership with HK Financial Markets as the technology partner.

The Sortika application offers its users the ability to save and invest daily by empowering investors to save and invest via a ‘passive’ savings tool or reminder which prompts the customer to save each time they spend. The purpose of testing in the CMA sandbox is to test the operational ability of the saving and investment modules and inform any enhancements prior to mass market roll out. The Sortika application “robo-advisory solution” is inbuilt with artificial intelligence (AI) capabilities that aid retail investor with various regulated investment products and decisions depending on their age and risk assessment. Funds invested through Sortika investment application will be safeguarded through a CMA-licensed custodian bank.

CMA Chief Executive Officer, Mr. Wyckliffe Shamiah said, ‘the admission of Sortika Investment Application and robo-advisory solution to the CMA Regulatory Sandbox will enhance access and usage of regulated investment options by the investing public in the capital markets.’  Mr. Shamiah also noted that the new entrant was the third fintech to test a robo-advisory solution and pointed that the Authority will be keen to analyse the uptake of similar solutions by investors.

The Authority further noted that since the establishment of the Regulatory Sandbox in March 2019, 15 companies had been admitted to test innovations, products and solutions that can deepen the capital markets and improve investor participation. They include; crowdfunding, robo-advisory, screen-based securities lending and borrowing, Regtech, Intermediary Service Platform providers (an entity operating a tech platform that markets and distributes capital markets products to retail investors by aggregating their funds and collectively investing them in the approved products) and blockchain technology.  

The new entrant is the 16th to be admitted to the Regulatory Sandbox to date since the launch of the test environment in March 2019.

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, Manager, Corporate Affairs & International Relations on This email address is being protected from spambots. You need JavaScript enabled to view it.

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