NAIROBI, Kenya, Oct 26 — The Capital Markets Authority has admitted Altree Capital Kenya Limited to the regulatory sandbox to test its Sortika investment application and Robo-advisory solution.
The move is pursuant to the Capital Markets (Regulatory Sandbox Policy Guidance Note) March 2019.
Altree Capital will operationalize the Sortika Investment Application and Robo-Advisory solution in partnership with HK Financial Markets as the technology partner.
The Sortika application offers its users the ability to save and invest daily by empowering investors to save and invest via a ‘passive’ savings tool or reminder which prompts the customer to save each time they spend.
The purpose of testing in the CMA sandbox is to test the operational ability of the saving and investment modules and inform any enhancements prior to mass market rollout.
The Sortika application “Robo-advisory solution” is inbuilt with artificial intelligence (AI) capabilities that aid retail investor with various regulated investment products and decisions depending on their age and risk assessment.
Funds invested through Sortika investment application will be safeguarded through a CMA-licensed custodian bank.
“The admission of Sortika Investment Application to the CMA Regulatory Sandbox will enhance access and usage of regulated investment options by the investing public in the capital markets,” said CMA Chief Executive Officer, Wyckliffe Shamiah.
Shamiah also noted that the new entrant was the third fintech to test a Robo-advisory solution and pointed out that the Authority will be keen to analyze the uptake of similar solutions by investors.
The Authority further noted that since the establishment of the Regulatory Sandbox in March 2019, 15 companies had been admitted to test innovations, products, and solutions that can deepen the capital markets and improve investor participation.
They include; crowdfunding, robo-advisory, screen-based securities lending and borrowing, Regtech, Intermediary Service Platform providers (an entity operating a tech platform that markets and distributes capital markets products to retail investors by aggregating their funds and collectively investing them in the approved products) and blockchain technology.
