Capital Market Authority (CMA) has been honoured the most
innovative regulator in Africa 2019 by international finance magazine.
According to a press release on Friday, the award comes as a
result of CMA’s ongoing efforts to facilitate innovations in Kenyas capital market.
This is the fifth year the authority is receiving the
commendation.
“The authority is pleased to receive this recognition for
the fifth consecutive year from this respected publication, which is a
testament to the authority’s commitment to supporting innovation as a catalyst
for transformative growth of the capital markets,” said CMA Chief Executive Officer
Paul Muthaura.
CMA aims to leverage technology in driving efficiency to
capital markets value chain, as well as aiming to balance robust regulatory and
compliance requirements to deepen an grow the market.
These approaches are evaluated regularly to ensure facilitation
of potential innovators who wants to focus on making financial services more
reliable, efficient, convenient and affordable.
The CEO further appreciates CMA for its continued support in
the capital market, articulating policy concerns unique to the emerging markets
and developing economies in various global standard-setting bodies such as the
International Organization of Securities Commission (IOSCO).
Regulatory Sandbox
The authority has been credited for introducing the
Regulatory Sandbox in May 2019 to support innovations in the capital markets
with three firms admitted so far.
The Regulatory Sandbox is a framework offered to financial
technology firms to facilitate live testing of innovative products, solutions
and services.
In January 2019, the authority was admitted to the Global
Financial Innovation Network (GFIN), which saw an increased support in the
transformation of capital markets in Kenya.
GFIN comprises of 38 financial service regulators and
organizations committed to nature and support financial innovation.
Capital market
products
CMA also facilitated the launch of two capital market
products, to diversify and develop innovation in financial markets.
One of the products is Green Bond Market, which was launched
in August to facilitate capital mobilization of Kshs.5 million. The derivative market
was launched in June after a six-month pilot study in 2018.
CMA, which was set in 1989 as a statutory agency under
Capital Markets Act Cap485A, is mandated to regulate and develop an orderly,
fair and efficient capital market in Kenya.
It also license and supervise all capital markets
intermediaries to ensure compliance with law, cum public regulation of
securities such as bonds and equities.