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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
There is enough demand for this sort of companies in Peru. Digital investment services and online advisory platforms are gaining traction, particularly among younger retail investors. The regulator has shown interest in technological innovation but emphasizes consumer protection and market transparency.
Legal affairs
Obligations and requirements to provide financial advisory and broking services, or ancillary services described above
A company needs to obtain a license in order to provide investment advisory services. The costs depend on the law firm fees.
This sort of intermediation agents (brokerage firms or intermediary firms) is subject to the control and supervision of the SMV. To perform as an intermediation agent, an organization and operational authorization issued by SMV is required, which has an indefinite effective term and can only be suspended or revoked by the same SMV. Moreover, the intermediation agents must be registered in the Public Registry of Securities Market.
The licensing process requires incorporation as a sociedad anónima (stock company), submission of a detailed business plan, corporate governance policies, risk control mechanisms, and a technological infrastructure that ensures compliance with market integrity and investor protection standards.
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
SMV will be the Regulator. Besides, the Data Protection Agency is in charge of the protection of data privacy rights. Investment advisory services are regulated activities even when provided digitally or robo-advisory. FinTechs must ensure that their platforms include proper client profiling mechanisms, disclosure of risks, and mechanisms to document the client’s consent. Additionally, digital platforms must comply with Law No. 29733 on personal data protection and may require explicit and informed consent for processing sensitive financial information.
Economic conditions
Market size for financial advisory and broking services as well as adjacent services and biggest companies in this business area