Canada    FinTech Guide    Chapter 2    Dominican Republic


2. Asset and Portfolio Management
Dominican Republic  Dominican Republic

It has recently been a politically important subject due to the approval of the Law 155-17 on Prevention of Money Laundering and Terrorism Financing.



Legal Affairs


There are no specific provisions regulating the offering of these services via Fin Tech.

Although there are no specific regulation for these services pursuant to Law 126-02 on E Commerce, Electronic Documents and Digital Signature., electronic trade of goods and services in general is valid in the Dominican Republic, subject to any special regulation that may be established for a specific sector.

From that point of view Brokerage firms which are authorized to offer asset and portfolio management services may perform said services through electronic means, although only one local firm uses an internet platform for such ends.

Pursuant to the Law 249-17 on Securities Market and its Regulation, firms wishing to provide these services shall organize themselves as sociedades anónimas (corporations) under Dominican law and be registered before the Superintendence of Securities (SIV by its acronym in Spanish). The minimum social capital required for its incorporation shall be of DOP 50,000,000.00 (approx. USD 1,012,145.75), and an additional 20% legal reserve must be maintained. There is no specific fee for the license.

As for the rest of the services described, there is no specific regulation nor is a license required. However, due diligence and know your client obligations established in the Law 155-17 on Prevention of Money Laundering and Terrorism Financing do apply.



Economic Conditions


Dominican authorities do not keep track of or publish such information.


Miscellaneous


Over the last ten years know your client and due diligence obligations have increased significantly in the Dominican Republic and grown more sophisticated.

Firms looking to establish themselves must be aware that they are likely to be required to establish a department destined to fulfill these and other regulatory obligations.


Contributing Authors

Jiménez Cruz Peña

José Cruz Campillo
Santo Domingo, Dominican Republic

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Chapter Index:


1. Payment Services / Mobile Payment

2. Asset and Portfolio Management

3. Consulting and Broking Services / Robo-advisory / Auto-trading

4. Trading Platforms / Social Trading Platforms / Signal Following

5. Crowdfunding / Crowdinvesting / Crowdlending

6. Virtual Currency - Bitcoin

7. Loan Services / Factoring / Loan Broking / Finetrading

8. Online Banking Services

9. Analytics and Research / Data Management / Risk Management

10. Accounting

11. Identification

12. Online-pawning

13. InsurTech

14. RegTech

15. Initial Coin Offerings (ICOs)

Disclaimer:
The information in this guide provides a general overview at the time of publication and is not intended to be a comprehensive review of all legal developments nor should it be taken as opinion or legal advice on the matters covered. It is for general information purposes only and readers should take legal advice from a Multilaw member firm.

Publication Date: 1 May 2018