Colombian legislation lacks a clear and specific legal framework that regulates FinTechs offering robo advisory and auto-trading services in Colombia.
Broking services and fund management services can only be exercised in Colombia by those companies which are duly authorized by the Colombian State and which are subject to the Colombian Finance Superintendency’s supervision.
Thus, only authorized brokerage firms, investment management companies and trust companies are authorised to provide cash and portfolio management services in the Colombian territory.
Colombian capital market is highly regulated, and it is governed by several laws and decrees, such as law 964 of 2005 and Decree 2555 of 2010. In Colombia, activities related to the management, use and investment of funds collected from the public are of public interest and can only be performed with the prior authorization of the Colombian State.
Robo-advisory is a fast-growing industry. Due to their user-friendly and automated processes and low-cost portfolio management, robo-advisors are posing a challenge to traditional financial institutions and financial advisory services.
Colombian financial group Grupo Bancolombia joined the robo advisory industry with the launch of an automated advisor for the clients of its brokerage firm, Valores Bancolombia.
Bancolombia claims it's the first national financial institution to implement this technology in Colombia.
Alvaro Parra Gómez
Bernardo Rodríguez Ossa