Body
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
Finland has a taken a neutral approach to modern financial advisory and broking services like robo-advisory and auto trading. While there are no specific national regulations targeting robo-advisers, operators providing such services must comply with the general requirements for investment services under MiFID II, which has been implemented nationally in the ISA. This includes obtaining proper authorisation from the FIN-FSA. Major traditional financial institutions like Nordea and OP Financial Group have launched robo-advisory solutions, while some of the independent providers have been integrated into larger banking groups. The regulatory framework supports the use of technology in financial services without bias against digital platforms.
Legal affairs
Obligations and requirements to provide financial advisory and broking services, or ancillary services described above
Business activities involving the provision of investment services are subject to the ISA (747/2012). FinTechs providing such services need to meet the same requirements as the traditional asset and portfolio management service providers. Under the ISA, the provision of investment services is subject to authorisation granted for specifically defined investment services (such as asset management) and ancillary services (such as custody). The FIN-FSA grants authorisations on application to investment firms domiciled in Finland where it can be ascertained, based on accounts obtained, that the applicant meets the requirements for authorisation. The prerequisites are related widely to the organisation of the firm’s activities, code of conduct with the customer as well as financial position.
In Finland, investment firms offering financial advisory and broking services, including algorithmic trading and direct electronic access, must comply with specific regulations under the ISA.