The Capital Markets Authority approved the entry of three Fintech firms into its regulatory sandbox. Innova, Pezesha, and a third unnamed company are the first entrants into the Capital Markets scheme aimed at increasing financial innovation. The three firms will test their innovative solutions to challenges in the capital market.
Innova Limited will test its cloud-based data analytics platforms curated to guide Fund managers, Custodian Banks, Investors and Regulators.
Pezesha Africa Limited will use the sandbox’s play field to test its digital crowd-lending platform which allows investors to provide loan facilities like debentures to Small and Medium Enterprises. The two companies will run their tests for twelve months, whereas the last unanimous fintech will test its innovations for three months.
The regulatory sandbox gives companies an arena to test innovations in a normal environment with minimum regulatory requirements. Approved on 26 March 2019, the sandbox seeks to improve CMA’s understanding of emerging technologies, their risks and opportunities to provide an evidence-based approach to regulation.
Upon completion of the test period, CMA holds the discretion to grant license or approval to participating companies, or offer permission to operate in Kenya subject to compliance with the terms of a letter of no objection. Applicants seeking admission into the sandbox need to be incorporated in Kenya or obtain a licence of the Authority or other capital market regulators. “CMA targets to admit five firms to the Regulatory Sandbox by 2023”, said Mr Paul Muthaura, CMA’s Chief Executive.
Related;
CMA Regulatory Sandbox is now accepting applications
CMA invites Fintech firms to its regulatory sandbox
