Nairobi, 22 November 2023… 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 First Future Holdings Limited (FFHL) to its Regulatory Sandbox.
First Future Holdings Ltd intends to test a USSD-based platform that simplifies CDS account opening and subsequent trading at the Nairobi Securities Exchange in partnership with Sterling Capital. In this regard, First Future Holdings will integrate the Immigration Population Registration System (IPRS) and the Kenya Revenue Authority (KRA) in its account opening USSD platform. When a customer accesses FFHL’s USSD code, they are prompted to key in their Identity Card number, email address, and agree to the terms and conditions. FFHL then utilizes the provided ID number to retrieve the necessary data from IPRS and the KRA Pin checker, ensuring the submission of verified and up-to-date information for CDS account opening.
In its capacity as an agent of Sterling Capital, FFHL electronically populates the required fields and submits electronic forms to Sterling Capital for account opening. Sterling Capital conducts their verification process before proceeding to open CDS accounts through the Central Depository and Settlement Corporation. Consequently, Sterling Capital under the agency relationship will execute orders placed by customers through the USSD code. FFHL will then collect orders electronically and pass them through to Sterling Capital. The firm will test the innovation in compliance with the provisions of the Capital Markets Regulatory Sandbox Policy Guidance Note.
ABOUT 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 structured 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