Airtel Money Kenya and M-PESA have been licensed by the Capital Markets Authority (CMA) to operate as Intermediary Service Platform Providers (ISPPs).
In a statement, the CMA says the licensing of the two operators “is expected to enhance competition, expand investor choice and strengthen digital access to regulated capital markets products.”
An Intermediary Service Platform Provider is a firm that operates an electronic platform to facilitate the marketing and distribution of approved Collective Investment Schemes (CIS) and acts as an intermediary between the fund manager and investors.
The CMA has also licensed CC Kenya Securities Limited (to operate as a Dealing Online Foreign Exchange Broker.
A dealing broker is authorized to act as a principal and market maker in online foreign exchange trading, including opening client accounts, providing trading platforms, offering market information, monitoring positions, and issuing end-of-day reports in line with the Capital Markets (Online Foreign Exchange Trading) Regulations, 2017.
The CMA has so far licensed 13 non-dealing online forex brokers, two dealing online forex brokers and three money managers.
This is fantastic news for mobile money users in Kenya! It’s great to see the CMA supporting these important services.