Abu Dhabi, UAE/Kenya
Abu Dhabi Global Market (ADGM), the International Financial Centre in Abu Dhabi, and the Capital Markets Authority (CMA) Kenya signed a Cooperation Agreement which provides a framework for cooperation to support financial innovation in each jurisdiction. The Agreement was signed by Paul Muthaura, Chief Executive, CMA Kenya and Richard Teng, Chief Executive Officer, Financial Services Regulatory Authority (FSRA) of ADGM.
The Agreement expands both ADGM and CMA’s FinTech cooperation network to growth markets with enormous potentials. It provides a framework for information sharing between the two Authorities to assist each other in keeping abreast of regulatory and relevant economic or commercial developments in the respective markets. Both Authorities are also looking forward to render support to innovative FinTech businesses in better understanding the regulatory regimes in each of their jurisdictions.
Paul Muthaura said, ‘‘We are committed to facilitating innovation in financial services, leveraging Kenya’s positioning in the region as an innovation centre. This is central to the implementation of the Capital Markets 10-year Master Plan which identified Fintech as an area in which Kenya could emerge as a centre of excellence. This however calls for us to assess lessons learned and to compare strategies to balance innovation and regulation with our peer regulators. The CMA has conducted public consultations on its strategy towards the establishment of a Regulatory Sandbox structure that is designed to encourage innovation in the capital markets. This emphasizes the CMA’s commitment to facilitating the introduction of new fintech products in the capital markets area. This serves as a timely addition to the Fintech MOU already entered with the Australian Securities and Investments Commission.’’
Richard Teng, CEO, FSRA of the Abu Dhabi Global Market said, “This is our first FinTech bridge with an African regulatory counterpart. The African continent is providing a compelling story of how digital technology can be deployed to provide financial services to the unbanked and unserved populations. Kenya is particularly active on that front. Through closer collaboration, ADGM and CMA hope to harness the strength of each other’s innovation platform to encourage and support technology startups and innovators in advancing their creative solutions into new markets. ADGM will continue to work with more like-minded partners like the Kenya CMA to advocate robust financial inclusion and regulatory cooperation.”
This new agreement establishes ADGM’s fourth FinTech bridge with a global FinTech hub, following its recent collaborations with the Monetary Authority of Singapore, the Australian Securities and Investments Commission and the Authority of Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone (Qianhai Authority). ADGM will continue to establish new initiatives and work closely local and global stakeholders to foster an open and inclusive global FinTech hub to serve Abu Dhabi and the greater MENA region. As part of its ecosystem-building commitment, ADGM has formed strategic partnerships with FinTech leaders and industry players in the Middle East and Africa region, India, Europe, USA, the United Kingdom and others.
Overview of ADGM’s FinTech Achievement and Commitment
ADGM’s first FinTech Abu Dhabi Summit will be launched and held on 23 October 2017. ADGM has accomplished notable milestones and established strategic partnerships to bolster the FinTech ecosystem since March 2016.
It is the first IFC in the MENA region to establish a dedicated and open regulatory framework in October to licence FinTech stakeholders and launched a Regulatory Laboratory (Reglab) to accelerate FinTech innovation. As a global FinTech Hub, ADGM continues to enhance its international network with the MENA region, Asia, Australia, US, UK, Europe to facilitate greater access to markets, capital and regulatory recognition for Fintech players.