Young people rely on companies providing modern consulting services.
In Spain consulting, brokerage, robo advisory and auto-trading services which offer investment advice are regulated in the Spanish Securities Act (Ley del Mercado de Valores). Anyone who provides investment advice and/or investment broking, contract brokerage or portfolio management is subject to an authorisation requirement to provide investment advice by the CNMV. Also companies must comply with anti money laundering and data protection regulations.
Among other requirements the minimum capital a company that provides investment advice range from €25,000 to €2,000,000 depending on the specific business model.
See letter b) above. The fact that advice or portfolio management is automated does not imply any difference with respect to the regulation to be applied to investment advice (technology neutrality principle). Such automated investment service must be provided in compliance with all applicable rules of conduct and in particular following the suitability assesment of its customers.
Finally as for CNMV fees, costs for getting a license may range from €3,000 to €6,000. Also there are additional costs regarding the registration of the company, the board members and supervision and accounting costs that may vary depending on the type of company.
The market on consulting, brokerage, robo advisory and auto-trading services is an emerging and fast-growing market.
FinTechs to consider are Finanbest, Finizens, Fintup. Micappital and OpSeeker.