The Capital Markets Authority (CMA) has embarked on an annual policy proposal aimed at creating an enabling environment for Capital Markets development.
Speaking during this year’s policy roundtable forum, the regulator’s Chief Executive Mr Paul Muthaura said, CMA needs to upgrade its regulatory capacity to properly comprehend the nuances of technological changes with a view to staying ahead of the curve.
‘’Technology use in the financial sector is already disrupting the traditional regulatory tools forcing regulators to keep pace with the changes. Going forward, increase in use of machine learning and artificial intelligence among other technologies, in the capital markets is a writing on the wall. The complexities in the capital markets are only going to increase with time.’’ He said.
He further added that Cybersecurity is an area the authority is actively involved in, ‘’I am happy to note that CMA is on the verge of implementing explicit standards on cyber resilience owing to the high reliance on technology in the securities and derivatives markets.’’
Other policies the regulator is looking at include, Amending the Capital Markets Act, Proposed foreign income tax amnesty filing extension to 30th June 2019, Revival of the privatization program, Setting up of the National Credit Guarantee Fund, Establishment of the Kenya Development Bank, Amendment of the Proceeds of Crime and Anti-Money Laundering Act as well as the establishment of the Financial Markets Conduct Authority.
‘’In order to support higher economic growth, there is a need for a concerted effort towards further developing the Kenyan securities market so as to increase market-based financing and supply of risk capital. In the coming years, CMA will continue with its endeavour of providing the right regulatory environment and facilitating the development of market infrastructure to meet the financing need of economic activities through the securities.’’ Muthaura Said.