FourFront Management Limited, a subsidiary of Standard Investment Bank has today been admitted to the Regulatory Sandbox by the Capital Markets Authority, becoming the 7th firm included in the live testing environment for capital markets innovations.
Fourfront proposes to implement a robo-advisory investment solution, which targets 100 participants over a four-month testing 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 that data as a basis to offer investment advice and invest client assets automatically. Typically, robo-advisors offer easy account setup, robust goal planning, account services, portfolio management and security features, attentive customer service, comprehensive education, and low fees.
FourFront CEO, Donald Wangunyu said, “We are very pleased to be among the pioneers of this technology, which will enhance efficiency and service delivery in the investments and financial services sector. As we enter an age where technology is ingrained into all aspects of human life, we are committed to finding solutions that will improve people’s lives and grow the industry. FourFront’s admission to the Regulatory Sandbox also demonstrates the regulator’s embracing of innovation and we are excited to continue to collaborate with them for more growth.”
FourFront Management is confident that robo-advisors will enable members of the public to grow their knowledge of investing, manage their investments directly, access equities and fixed-income directly in their portfolios and get automatic dividends compounding directly into their accounts. Aside from improving service delivery for customers, this innovation will eventually lower investment costs and enhance access for the uninvested majority of Kenyans.
FourFront will provide periodic reports to the CMA on the implementation of its test plans, achievement of test objectives, and risks and challenges observed during testing in accordance with the CMA Regulatory Sandbox Policy Guidance Note 2019.