The Capital Markets Authority (CMA) has announced the licensing of six new firms. The move spans multiple categories, including investment banking, stockbroking, and digital platform services.
The approvals come at a pivotal time for the Nairobi Securities Exchange (NSE), which has recently seen a surge in retail activity. By licensing these new intermediaries, the CMA aims to enhance product variety, foster competition, and provide more robust advisory services for both domestic and diaspora investors.
Among the most significant developments is the elevation of Rock Advisors Limited. Previously operating as an investment adviser, the firm has now been granted an Investment Bank license. This upgrade empowers Rock Advisors to expand its mandate significantly, moving beyond simple advisory to include market research, wealth management, and proprietary trading.
The stockbroking segment also welcomes a new player, Green Margin Capital Limited. As a licensed stockbroker, the firm will provide a new gateway for investors to access the equities and debt markets, further decentralizing market access.
Recognizing the growing demand for professional financial guidance among high-net-worth individuals and institutional players, the CMA approved three new Investment Adviser licenses:
- Zamara Actuaries, Administrators and Consultants Limited: A well-known name in the pension and insurance space, Zamara’s entry into formal investment advisory is expected to leverage its deep expertise in long-term financial planning.
- Arion Capital Limited: Joining the fray to provide specialized investment strategies.
- Horizon Africa Capital Limited: A boutique corporate finance firm that will now offer regulated advisory in mergers and acquisitions (M&A), capital raising, and bespoke wealth solutions.
In a nod to the increasing role of technology in finance, the CMA granted an Intermediary Service Platform Provider (ISPP) license to I&M Capital Limited, a subsidiary of I&M Group PLC.
Already an established fund manager, I&M Capital is now authorized to operate a platform that supports various investment products. This infrastructure will facilitate the distribution of collective investment schemes (unit trusts) and fixed-income instruments, making it easier for tech-savvy investors to manage their portfolios digitally.
According to the CMA, these licenses are part of a broader mission to broaden the value chain of the capital markets. By increasing the number of professional intermediaries, the regulator hopes to:
- Enhance Liquidity: More brokers and banks lead to more active trading.
- Broaden Investor Choice: New firms bring unique products and specialized advisory niches.
- Encourage Retail Participation: With the recent success of mobile-based trading platforms like Safaricom’s Ziidi Trader, the addition of new licensed players ensures a regulated environment for the growing influx of retail investors.