There are no significant political or social reservations towards this kind of consulting services. Some companies provide these services through online platforms and it is expected to increase in volume as the Serbian capital market further develops.
The Law on Capital Markets recognizes consulting and broking services and robo advisory as well as auto-trading as licensable activities which may be performed by licensed investment companies, i.e. broker-dealer company and authorized banks. The Law on Capital Markets makes a difference between investment advice and investment recommendation which means any investment strategy distributed through distribution channels to the undefined group of users and which may be performed by an investment company without a specific license as secondary activity. Also, the Law on Capital Markets does not explicitly regulate auto-trading, but we are of the opinion this manner of trading can be subsumed under the general description provided in the Law on Capital Markets, i.e. that the investment companies may provide the services in regard to the receipt and transfer of the orders for financial instruments trading. The Law on Capital Markets and relevant bylaws provide the requirements for investment company license. This license will be issued by the Commission after the complete documentation, which includes general acts, business models, information on organizational structure and members of the corporate government, as well as capital requirements proofs, and fees evidence is submitted to the Commission. Fees include fees for obtaining the license or amendments to the license in accordance with Commission’s bylaws. In regard to the capital requirements, initial capital for the investment companies amounts among EUR 125,000 to EUR 730,000 depending on type of services. The investment company should maintain minimum capital requirements in accordance with the Commission’s regulations.
The Serbian market is relatively small and undeveloped. There is no publicly available information about the number of customers of companies operating in the sector of consulting and broking services. A list of registered companies to perform this activity can be found on: http://www.sec.gov.rs/index.php/en/.
Generally, Serbian capital market is still rather underdeveloped, but however it is expected that an increase in financial instruments trading in the forthcoming period may help to further evolve this sector.