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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
Robo advisory and auto-trading services are growing in Argentina. Traditional financial institutions and banks are incorporating robo advisory services as a new product within their offering of financial services to their clients. Robo advisory and auto-trading have the great advantage of turning investment advisory experience for clients easy and cost efficient. For example, we can mention Santander Bank, which has recently launched its 'Openbank' platform in Argentina offering Santander clients auto-trading services. We can also mention other digital banks in Argentina offering robo advisory and auto-trading services such as Brubank, Wilobank, Quiena, Front, Reba, Ualá, among others.
Legal affairs
Obligations and requirements to provide financial advisory and broking services, or ancillary services described above
Depending on the specific financial advisory, companies providing auto-trading and robo advisory services may be required to register and obtain a special license before the CNV as referred in Section b (Asset and portfolio management) and before the market in which they act as brokers for the intermediation with assets negotiated under public Offering (ex. BYMA, ROFEX, MAE). For instance, if the auto-trading platform not only provides financial advice but also allows users to execute the proposed investment, that would mean that such company offers trading services and should, therefore, be previously authorised by CNV to carry out such financial activity.
Additional comments regarding the legal situation for financial advisory and broking services, or adjacent services or what FinTech’s must be aware of in this business area