By 
The Securities and Exchange Commission (SEC) has suspended the operations of four innovations in the Sandbox environment following the completion of live testing.
The four innovations are Kukula Capital Plc, Lupiya Circle Plc, Premier Credit Zambia Ltd and Lusaka Securities Exchange Plc.
The SEC suspended these players to facilitate a comprehensive review and evaluation of their test phase performance and to ensure a smooth and orderly exit from the Sandbox.
In 2022, the SEC issued the Regulatory Sandbox Framework for Capital Markets, allowing firms to trial capital market innovations, such as Financial Technologies (FinTechs), in a controlled live environment under specified conditions and limitations.
Read more: Trading at Securities Exchange All Share Index rise quickest in 17 weeks
SEC Chief Executive Officer, Philip Chitalu, in a statement issued on Tuesday, said that after the issuance of the Sandbox framework, the commission launched the first Sandbox cohort, admitting four innovations for testing.
Chitalu explained that the testing phase allowed innovators to test their proposed innovations in a live environment under agreed parameters, control boundaries and safeguards over a specified period.
“Further, the testing of innovations enabled innovators to engage with the SEC and served as a platform to better understand the development and application of the innovations, their appropriateness, commercial viability, and safety, among others,” Chitalu stated.
“Considering the foregoing, the SEC hereby announces that live testing of innovations has been completed and has directed the four Sandbox innovators to suspend operations within the Sandbox environment,” he added.
Chitalu noted that Sandbox innovators must suspend the onboarding of new clients and investors for the innovations tested under the Sandbox environment.
However, contractual obligations between Sandbox innovators and participating investors would remain in force and be fulfilled as agreed.
He also mentioned that depending on the outcome of the review and evaluation exercise, Sandbox innovators may be permitted or not permitted to deploy their innovations on a commercial scale.
Chitalu disclosed that the SEC would issue a public statement announcing the outcome of the test review and evaluation exercise, which would determine whether the respective Sandbox innovators can deploy their innovations commercially.
WARNING! All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express permission from ZAMBIA MONITOR.
Comments