CMA sets sight on Shariah products

Capital markets regulator, Capital Markets Authority (CMA), has outlined plans to facilitate the introduction of ethical funds as part of its efforts to deepen capital market products.

In a trendsetting move, CMA licensed the first Ethical Fund, First Ethical Opportunities Fund, sponsored by FCB Capital, and has through engagement with Islamic Finance stakeholders, identified key focus areas touching on broad market education, tax harmonisation and formulation of policy and legal frameworks to help accelerate the growth of such new capital markets products.

Speaking during the launch of FCB Capital Limited, the first Shariah Compliant Investment bank in Kenya on Tuesday evening, CMA Chief Executive Officer Mrs Stella Kilonzo, disclosed that the CMA is keen to promote new capital market products such as Islamic Capital markets products.

Launched as a fully owned subsidiary of First Community Bank, FCB Capital becomes the first intermediary to tap into a Collective Investment Scheme geared towards ethical investing under Islamic capital markets product range.

"As an Authority we are keen to promote new capital markets products which will help us achieve the objective of deepening our capital markets by facilitating growth of areas such as Islamic capital market products," Mrs Kilonzo explained.