Canada    FinTech Guide    Chapter 3    Spain


3. Consulting and Broking Services / Robo-Advisory / Auto-Trading
AAA  Spain

Young people rely on companies providing modern consulting services.



Legal Affairs


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.



Economic Conditions


The market on consulting, brokerage, robo advisory and auto-trading services is an emerging and fast-growing market.



Miscellaneous


FinTechs to consider are Finanbest, Finizens, Fintup. Micappital and OpSeeker.



Contributing Authors

Ventura Garcés & López-Ibor

Claudi Garcés
Barcelona, Spain


Alfonso López-Ibor
Madrid, Spain

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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