Wednesday, November 11, 2020 / 9:19 AM / By Capital Markets Authority Kenya / Header Image Credit: Ecographics

Asa strategy of deepening support for innovative solutions in the capital marketsindustry, the Capital Markets Authority (CMA) is joining twenty-threeregulators across five continents to test innovative financial products,services, business models and regulatorytechnology (RegTech).

Thecross-border tests will be conducted under the Global Financial InnovationNetwork (GFIN), which is an international network of financial servicesregulators and related organisations, committed to supporting financialinnovation. CMA joined GFIN in February 2019. The test environment is designedto give opportunities for regulators to pick lessons from the outcome of thetests and apply them in their respective jurisdictions to catalyze innovativefinancial markets' solutions. GFIN is inviting applications from firms to testinnovative financial products, services, business models or regulatorytechnology across more than one country or jurisdiction before 31 December2020. Application forms can be accessed via GFIN website or CMA website. 

GFINseeks to provide a more efficient way for innovative firms to interact withregulators, helping them navigate between countries as they look to scale newideas. This includes a pilot for firms wishing to test innovative products,services, or business models across more than one jurisdiction. It also aims tocreate a new framework for co-operation between financial services regulatorson innovation-related topics, gaining insights and sharing differentexperiences, lessons, and approaches. 

TheCMA Acting Chief Executive, Mr. Wyckliffe Shamiah, said this is a uniqueopportunity to support innovation in the capital markets, while appreciatingthe role of financial technology (Fintech) as a key enabler of enhancedefficiency of the capital markets value chain. 

Insupport of innovations, CMA set up a Regulatory Sandbox in March 2019 and hasadmitted seven companies. The Regulatory Sandbox is a live testing environmentthat allows firms to test innovative products, services, and business models ina live market environment, while ensuring that appropriate safeguards are inplace. The Sandbox aims to accelerate CMA's understanding of emergingtechnologies, support adoption of an evidence-based approach to regulation andfacilitate deepening and broadening of Kenya's capital markets. 

Mr.Shamiah observed that CMA is committed to supporting growth of Fintech andinnovations to unlock their potential value in deepening capital markets inline with the objectivesof the Capital Market Master Plan (2014-2023) and the Strategic Plan(2018-2023) in response to the evolving technological landscape of the capitalmarkets value chain. 

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