CMA graduates Chumz App from the Regulatory Sandbox
Nairobi, 30 August 2022…The Capital Markets Authority (CMA) has announced the exit of Moneto Ventures Limited from the Regulatory Sandbox following successful testing of its innovation Chumz App. The Authority has also concurrently approved the roll-out of the mobile application to the mass market.
Chumz App, built by Moneto Ventures Limited is a mobile application which functions as a collective investment scheme (CIS) intermediary service platform. It enables investors to save and invest towards a specific goal with as low as Kshs5. The funds earmarked by clients towards a specified goal are held by a custodian bank licensed by the Authority for safe-keeping and invested in a CIS registered by the Authority. As such, investment decisions are undertaken by a licensed fund manager. Investors can withdraw their savings at any time, through their mobile phones.
‘The innovation by Moneto Ventures Limited facilitates CMA’s mandate of promoting a high level of savings and investments from retail investors and enhances investments to support economic development’, said CMA Chief Executive Officer Wyckliffe Shamiah. He noted that the value of the Regulatory Sandbox was evident in providing a supportive regulatory environment for promising innovations to operate, subject to applicable restrictions on client access and investment size.
Moneto Ventures Limited was admitted to the CMA Regulatory Sandbox in May 2021 and becomes the sixth firm to exit after Pezesha Africa Limited, Genghis Capital Limited, Innova Limited, Central Depository and Settlement Corporation and Fourfront Management Limited.
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.