Press Release

CMA teams up with Global Financial Innovation Network members to test innovations across borders

Nairobi, 11 November 2020… As a strategy of deepening support for innovative solutions in the capital markets industry, the Capital Markets Authority (CMA) is joining twenty-three regulators across five continents to test innovative financial products, services, business models and regulatory technology (RegTech).

The cross-border tests will be conducted under the Global Financial Innovation Network (GFIN), which is an international network of financial services regulators and related organisations, committed to supporting financial innovation. CMA joined GFIN in February 2019. The test environment is designed to give opportunities for regulators to pick lessons from the outcome of the tests and apply them in their respective jurisdictions to catalyze innovative financial markets’ solutions. GFIN is inviting applications from firms to test innovative financial products, services, business models or regulatory technology across more than one country or jurisdiction before 31 December 2020. Application forms can be accessed via GFIN website or CMA website.

GFIN seeks to provide a more efficient way for innovative firms to interact with regulators, helping them navigate between countries as they look to scale new ideas. This includes a pilot for firms wishing to test innovative products, services, or business models across more than one jurisdiction. It also aims to create a new framework for co-operation between financial services regulators on innovation-related topics, gaining insights and sharing different experiences, lessons, and approaches.

The CMA Acting Chief Executive, Mr. Wyckliffe Shamiah, said this is a unique opportunity to support innovation in the capital markets, while appreciating the role of financial technology (Fintech) as a key enabler of enhanced efficiency of the capital markets value chain.

In support of innovations, CMA set up a Regulatory Sandbox in March 2019 and has admitted seven companies. The Regulatory Sandbox is a live testing environment that allows firms to test innovative products, services, and business models in a live market environment, while ensuring that appropriate safeguards are in place. The Sandbox aims to accelerate CMA’s understanding of emerging technologies, support adoption of an evidence-based approach to regulation and facilitate deepening and broadening of Kenya’s capital markets.

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

ENDS

BACKROUND 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. 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, Head of Corporate Communications on This email address is being protected from spambots. You need JavaScript enabled to view it.

Participating Regulators

The following regulators are participating in cross-border testing

Regulatory Authority

Jurisdiction

1

Australian Securities and Investments Commission (ASIC)

Australia

2

Central Bank of Bahrain (CBB)

Bahrain

3

Bermuda Monetary Authority (BMA)

Bermuda

4

Alberta Securities Commission (ASC)

Alberta, Canada

5

British Columbia Securities Commission (BCSC)

British Columbia, Canada

6

Ontario Securities Commission (OSC)

Ontario, Canada

7

Autorité des marchés financiers (AMF)

Quebec, Canada

8

Guernsey Financial Services Commission (GFSC)

Guernsey

9

Hong Kong Insurance Authority (IA)

Hong Kong

10

Hong Kong Monetary Authority (HKMA)

Hong Kong

11

Hong Kong Securities and Futures Commission (HKSFC)

Hong Kong

12

Magyar Nemzeti Bank (Central Bank of Hungary, MNB)

Hungary

13

Jersey Financial Services Commission (JFSC)

Jersey

14

Astana Financial Services Authority (AFSA)

Kazakhstan

15

Capital Markets Authority (CMA, Kenya)

Kenya

16

Bank of Lithuania (LB)

Lithuania

17

Monetary Authority of Singapore (MAS)

Singapore

18

Financial Services Commission Taiwan (FSC Taiwan)

Taiwan

19

Abu Dhabi Global Market (ADGM)

Abu Dhabi,

United Arab Emirates

20

Dubai Financial Services Authority (DFSA)

Dubai,

United Arab Emirates

21

Central Bank United Arab Emirates (CB UAE)

United Arab Emirates

22

Financial Conduct Authority (FCA)

United Kingdom

23

Consumer Financial Protection Bureau (CFPB)

United States of America

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