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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
The social and political climate for modern financial advisory services is supportive, with no additional regulation when compared to traditional approaches. There are no general reservations as to modern financial advisory services outside of the industry.
Legal affairs
Obligations and requirements to provide financial advisory and broking services, or ancillary services described above
Financial advisers must register as Financial Service Providers in accordance with the FSPA with the associated costs as outlined in our FinTech sectionabove.
A Financial Advice Provider Licence must also be obtained. Licence application fees range from $703.80 to $1,060.30 depending on the relevant class relating to the application. An assessment is required, and additional fees may be imposed subject to the length of the assessment.
An annual confirmation will be required and the then current applicable FMA levy will be payable.
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
Providers should consider whether to apply for a licence individually or through a company. A company could be a way of ringfencing their liability both in relation to the licence and other commercial risks. Individuals using a company to hold the licence can contract with the company and provide services in reliance on the company's licence.
Economic conditions
Market size for financial advisory and broking services as well as adjacent services and biggest companies in this business area
There are over 8,000 financial advice providers registered on the Financial Service Providers Register (FSPR) as at 30 September 2024. 1,410 of those submitted a regulatory return in 2024. The reports showed that advice on insurance products (predominantly life and health insurance), was most prevalently provided with advice on managed investment products and consumer credit contracts second and third respectively.
Additional comments regarding the economic situation for financial advisory and broking services as well as adjacent services or what FinTech’s must be aware of in this business area
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