Capital Markets

Standard Investment Bank unit joins CMA fintech hub

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CMA acting chief executive Wyckliffe Shamiah. FILE PHOTO | NMG

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Summary

  • The CMA said FourFront Management proposes to test a robo-advisory solution targeting 100 investors during a four-month period.
  • A robo-advisor is a digital platform that provides automated, algorithm-driven financial planning and investing services with little to no human interaction.
  • The firm's admission brings the total number of firms admitted to the live-testing environment for capital markets innovations, dubbed regulatory sandbox, to seven.

The Capital Markets Authority (CMA) has admitted Standard Investment Bank (SIB) owned firm FourFront Management to its fintech innovation and incubating hub, where it will test new products for possible rollout in the local capital markets.

The CMA said FourFront Management proposes to test a robo-advisory solution targeting 100 investors during a four-month period.

A robo-advisor is a digital platform that provides automated, algorithm-driven financial planning and investing services with little to no human interaction.

The firm's admission brings the total number of firms admitted to the live-testing environment for capital markets innovations, dubbed regulatory sandbox, to seven.

"The admission of FourFront Management Limited to the Regulatory Sandbox will build our capacity as a regulator, to respond to the impact and support implementation of new technologies in the capital markets value chain. Investment technology is one of the core ways financial technology is likely to disrupt Kenya’s capital markets," CMA acting chief executive Wyckliffe Shamiah said.