CMA Approves Roll out of First Robo-Advisor from Regulatory Sandbox

The Capital Markets Authority (CMA) has granted a ‘No Objection’ to Fourfront Management Limited to roll out in the mass market a Robo- advisory solution which provides automated investment advice through the use of advanced data analytics. The approval follows successful testing of the innovation in the CMA Regulatory Sandbox

The No-Objection approval is subject to Fourfront Management Limited’ 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,” CMA Chief Executive Mr 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.

Read also; CMA Admits Investment Advisor Waanzilishi Capital Limited to its Regulatory Sandbox

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