CMA inducts two more firms to its regulatory sandbox

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The Capital Markets Authority (CMA) has admitted KOA Save Africa Limited and Moneto Ventures Limited to the Regulatory Sandbox.

The two firms will test their innovations in a live capital market environment, in compliance with the CMA Regulatory Sandbox Policy Guidance Notes (PGN), in line with the commitment to develop and deepen the capital markets by facilitating the deployment of financial technology (fintech).

KOA Save Africa Limited will test out its KOA application, which is available for both iOS and Android users, that aims to help retail investors conveniently invest in capital markets. The application has the capacity to embed several collective investment schemes focusing on money market funds. KOA Save Africa will test its application for a period of six months.

Moneto Ventures Limited will test its Chumz App that uses behavioural psychology techniques to encourage users to save and build a culture of digital savings and investment. Moneto Ventures seeks to achieve this by ensuring minimum effort between the decision to save and invest, and the actual deposit while helping investors keep track of their progress on specific goals. Moneto Ventures will test its application in the Regulatory Sandbox for one year.

‘The Authority is delighted to welcome these new innovations for testing in the Regulatory Sandbox because if these innovations are successful, they will significantly reduce the barriers to entry into the capital markets for retail investors. This can be achieved by making collective investment schemes accessible to investors in a more affordable and convenient manner. Successful testing within the regulatory sandbox will ultimately enhance access, usage and the quality of products in the capital markets by leveraging technology,” CMA Chief Executive Mr. Wyckliffe Shamiah said in a statement.

Mr. Shamiah also observed that the Authority had surpassed its target of admitting five firms to the Regulatory Sandbox by 2023, as outlined in the Authority’s Strategic Plan 2018-2023. The Authority has so far admitted nine firms. CMA recently published a report on the milestones it has achieved in the Regulatory Sandbox since its launch in March 2019.

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