Nairobi, 4 January, 2024… In line with its commitment to deepen and develop the capital markets industry by facilitating the deployment of financial technology (fintech), the Capital Markets Authority (CMA) has announced the admission of Frictionless Enterprises Limited to its regulatory sandbox.
Frictionless Enterprises Limited intends to test Power IO App, a mobile application that enables workers to invest and employers to effectively manage their workforce via the deduction management system provided in the App. As Power® connects to and contracts with employers and gig platforms, users are able to schedule investments from their earnings. This means that an individual could allocate a percentage of their earnings every month to be deposited into a money market fund.
Employers and gig platforms deduct contributions from the Workers’ wages and the Power® solution automatically sweeps the funds into the underlying money market fund. Workers are able to schedule these contributions to occur each time they are paid, or at their preferred contribution cycle. This functionality helps to maximize contributions and eliminate the likelihood of people spending their wages if they first received it into a current account or wallet.
Frictionless Enterprises Limited will test this application together with Sanlam East Africa Investment Limited as the Fund Manager.
The firm will test the innovation in compliance with the provisions of the Capital Markets Regulatory Sandbox Policy Guidance Notes (PGN).
BACKGROUND INFORMATION ON THE CAPITAL MARKETS AUTHORITY
The Capital Markets Authority (CMA) was set up in 1989 as a statutory agency under the Capital Markets Act Cap 485A. It is charged with the prime responsibility of both regulating and developing an orderly, fair, and efficient capital markets in Kenya with the view to promoting market integrity and investor confidence. CMA also regulates the commodity markets and online forex trading. The regulatory functions of the Authority as provided by the Act and the regulations include; Licensing and supervising all the capital market intermediaries; Ensuring compliance with the legal and regulatory framework by all market participants; Regulating public offers of securities, such as equities and bonds & the issuance of other capital market products such as collective investment schemes; Promoting market development through research on new products and services; Reviewing the legal framework to respond to market dynamics; Promoting investor education and public awareness; and Protecting investors’ interest. For more information, please contact: Antony Mwangi, Manager Corporate Affairs & International Relations on firstname.lastname@example.org