The Capital Markets Authority (CMA) has granted admission to (FFHL) into its Regulatory Sandbox, marking a pivotal moment in the evolution of financial technology (Fintech) within the capital markets.
FFHL is poised to revolutionize stock trading at the Nairobi Securities Exchange through an innovative USSD-based platform, developed in collaboration with Sterling Capital. The platform’s primary goal is to simplify the process of opening a Central Depository System (CDS) account and conducting trades, promising an innovative and hassle-free experience for investors.
At the core of FFHL’s groundbreaking initiative is the integration of the Immigration Population Registration System (IPRS) and the Kenya Revenue Authority (KRA) into its USSD platform for account opening. Prospective investors, upon accessing FFHL’s USSD code, are prompted to input their Identity Card number, email address, and consent to the terms and conditions. Leveraging this ID number, FFHL taps into IPRS and the KRA Pin checker databases to fetch verified and current information necessary for CDS account opening.
Operating as an authorized agent of Sterling Capital, FFHL takes control by electronically populating necessary fields and submitting forms to Sterling Capital for account creation. Sterling Capital then undergoes its verification process before proceeding to open CDS accounts through the Central Depository and Settlement Corporation. Acting as an agency, Sterling Capital executes orders placed by customers via the USSD code provided by FFHL. FFHL, in turn, collects these orders electronically and forwards them to Sterling Capital for execution. Throughout the trial period, FFHL diligently adheres to the provisions outlined in the Capital Markets Regulatory Sandbox Policy Guidance Note.
This development is poised to transform the traditional landscape of stock trading. The collaborative effort between FFHL and Sterling Capital promises to usher in a new era of convenience and efficiency in the stock market. By streamlining the account opening process and enabling verified data retrieval through the USSD platform, FFHL aims to attract a new wave of investors by simplifying their entry into the stock market realm.
The move signifies a progressive step by the CMA in embracing innovation within the capital markets. By admitting FFHL into its Regulatory Sandbox, the CMA demonstrates its commitment to fostering the integration of technology to enhance the accessibility and inclusivity of the capital markets for the wider public.
