CMA exits first Robo-Advisor from regulatory sandbox

NAIROBI, Kenya March 31-The Capital Markets Authority (CMA) has approved Fourfront Management Limited to roll out a Robo-advisory solution in the mass market following the successful testing of the innovation in the CMA Regulatory Sandbox.

The solution provides automated investment advice through use of advanced data analytics.

The ‘No-Objection’ approval is subject to Fourfront Management Limited’s compliance with the Capital Markets Act, relevant regulations, and the Framework to Roll-out a Robo-Advisory Solution.

The introduction of a Robo-advisory platform, the first in Kenya’s capital markets to be assessed by the Authority, is a significant milestone in the deepening of the capital markets through digitizing the investment advisory process.

‘This innovation is going to enhance and transform traditional investment advisory offering to the retail market segment in Kenya and the East African region. We expect the Robo-advisor to spur greater participation in the capital markets by retail investors, particularly those with a preference for digital solutions’, said CMA Chief Executive Wyckliffe Shamiah.

Fourfront Management Limited was admitted to the CMA Regulatory Sandbox in September 2020 and becomes the fifth firm to successfully exit the CMA Regulatory Sandbox, after Pezesha Africa Limited, Genghis Capital Limited, Innova Limited and Central Depository and Settlement Corporation.