The Capital Markets Authority (CMA) has granted a ‘No Objection’ to Ndovu app to roll out a robo-advisory solution to the mass market upon the successful completion of the test in the CMA Regulatory Sandbox.
The firm is licensed as both a fund manager and investment advisor by CMA. Through the robo- advisory platform, investors will have access to collective investment schemes approved and registered by the Authority, Government bills and bonds, and Exchange Traded Funds listed in offshore stock exchanges. Waanzilishi Capital becomes the second to successfully test a robo- advisory platform.
The first rob-advisory firm that exited the Regulatory Sandbox is Four Front management.
Robo-advisors are platforms that offer automated investment advice. Through its Ndovu App, an investor creates a profile to aid in determining his risk profile (risk appetite) and investment goals. The robo-advisor will then use the information provided by the investor and inbuilt algorithms to recommend a portfolio of suitable investments to the investor. When changes in circumstances occur in the investor’s life, the latter will inform the firm, and the investment portfolio may be rebalanced to reflect the change in the situation.
Waanzilishi Capital Limited was admitted to the Regulatory Sandbox live-testing environment for fintech innovations on 17 December 2021. ‘The firm will be required to continue compliance with the CMA Framework to Roll-out a Robo-Advisory Solution in addition to continuous licensing requirements for Investment Advisers and Fund Managers’, CMA Chief Executive
Officer Wycliffe Shamiah noted.
Mr Shamiah added that robo-advisory platforms offer low-cost and convenient access to capital markets and thus rally retail investors’ participation.