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FinTechs belonging to this category offer asset and portfolio management services via an internet platform or software programs and usually manage and dispose of the assets of their customers long or short term according to their specifications without actually holding the property or the possession of those assets. FinTechs, which provide information about and access to overnight or time deposit accounts at national and foreign banks and which execute the transactions to these accounts, also belong to this category. Some FinTechs however only act on request of the customer.
Aside from that some FinTechs offer software or internet solutions enabling users to manage and plan their personal finances on their own by providing graphics, overviews and compilations of their financial data and sometimes indicating financial risks or opportunities, but without actually managing the assets.
Introduction
Attitude of the country towards modern asset and portfolio management services
Asset and portfolio management is a relatively new concept in Albania, despite the adoption of laws and bylaws regulating this sector. Recently, also following the perspective of joining the EU, Albania adopted the Law on Collective Investment Undertakings no. 56/2020, which is partly approximated with Directive 2009/65/EC, Directive 2011/61/EU and amending Directives 2003/41/EC and 2009/65/EC of the European Parliament and Regulations (EC) No 1060/2009 and (EU) No 1095/2010. In order to provide a comprehensive legal framework in accordance with international standards and to implement EU practices, Albania has enacted two bylaws during 2023, namely (i) Regulation no. 37, dated 31.03.2023 “On recognition of the management company of collective investment undertakings licensed in an EU member country and the recognition of the open – ended collective investment undertaking in transferable securities approved in an EU country member”, and (ii) Regulation no. 38, dated 31.03.2023 “On registration of the sale agent of collective investment undertakings with open-ended collective undertaking in transferable securities approved in an EU country member". However, this area of business remains in development and obscure to companies and people.
Legal affairs
Obligations and requirements to provide asset and portfolio management, or ancillary services described above
According to the Law on Collective Investment Undertakings, asset and portfolio management is done through an incorporated entity, the regular business of which is the management of publicly offered collective investment undertakings including undertakings for collective investment in transferable securities licensed under Albanian law or an equivalent foreign law.
The paid-in capital of the management company shall be no less than ALL 15,800,000 – approx. EUR 158,000 and must always have own funds as provided in the Law on Collective Investment Undertakings.