FourFront Management Tests its Robo-advisory Solution on CMA Regulatory Sandbox

The Regulatory Sandbox allows live testing of innovations under a less onerous regulatory regime and is expected to attract Fintech companies and capital markets licensees such as stockbrokers, fund managers, investment advisors and collective investment schemes to test the application of technology on financial services.

FourFront Management, owned by Standard Investment Bank (SIB)  has been admitted to the Capital Markets of Kenya Regulatory Sandbox.

CMA says financial technology (fintech) firm will test new products for possible rollout in the local capital markets.

They propose to test a robo-advisory solution targeting 100 investors during a four-month period. 

A robo-advisor is a digital platform that provides automated, algorithm-driven financial planning and investing services with little to no human interaction. It collects information from its clientele about their financial situation and future goals through an online survey and then leverages the data as a basis to offer investment advice and automatically invest client assets.

The firm’s admission brings the total number of firms admitted to the live-testing environment for capital markets innovations, dubbed regulatory sandbox, to seven.

“The admission of FourFront Management Limited to the Regulatory Sandbox will build our capacity as a regulator, to respond to the impact and support implementation of new technologies in the capital markets value chain. Investment technology is one of the core ways financial technology is likely to disrupt Kenya’s capital markets,” CMA acting chief executive Wyckliffe Shamiah said.