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FinTechs belonging to this category offer advisory and broking services for investments usually via an internet platform.
Robo advisory services usually offer an investment proposition following a series of questions concerning the personal financial background and the risk-bearing capacity of the user. Sometimes the respective platform also enables the user to directly execute the proposed investment.
Auto-trading concerns all services which automatically trade on behalf of the customer according to his or her specifications.
Apart from that some FinTechs collect and offer merely or as an ancillary service market information or operate comparison portals to increase the transparency of the capital markets and to help the investor with his decision-making.
There are also FinTech-advertising-services which advertise various financial services or products.
Introduction
Attitude of the country towards modern financial advisory and broking services
Following the dynamics of doing business, Albanian Parliament considered as fundamental the revision of the legislation on capital markets. Pursuant to recent trade approach, and among others, aiming to regulate the political climate towards modern financial advisory services, Albanian Parliament adopted a new Law on Capital Markets in 2020. Despite legal incentives, modern financial advisory services remain a challenging and developing sector, and not (yet) much familiar to businesses.
In addition to the bylaws adopted in respect of capital markets in Albania and in order to support sustainable economic growth as well as national competitiveness through the proper functioning of capital markets, the Albanian Council of Ministers has adopted Decision No. 266, dated 27.04.2023, titled "On the Approval of the Policy Document 'Creating an Enabling Environment for the Development of Capital Markets in Albania, 2023-2027'." This legislative act analyzes the situation of the capital market in Albania and its infrastructure, proposing concrete action plans for the development of the capital market over a five-year period (i.e., promoting efficient capital markets through the encouragement of their development and effective supervision).
Legal affairs
Obligations and requirements to provide financial advisory and broking services, or ancillary services described above
Albanian Law on Capital Markets defines 'financial advisory service' as the provision of personal recommendations to a client or prospective client, either upon its request or at the initiative of the investment company, in respect of one (1) or more transactions relating to financial instruments.
Any company intending to conduct financial advisory services in Albania must be registered with, and licensed from, the Albanian Financial Supervisory Authority. To obtain the license, the applicant must submit information on the company such as structural organisation, stockholders, business plan etc., and filing fee at the amount of ALL 45,000 – approx. EUR 50. Upon receiving the Authority's decision on granting the license, the company is required to pay registration fee at the amount of ALL 60,000 – approx. EUR 600.