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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
Modern technologies and the digitization of the financial sector are actively attracting the attention of the Russian companies and investors, stimulating the development of new forms of financial consulting and brokerage services. Russia is following modern trends in financial consulting and brokerage services, which are manifested in the increasing popularity of online platforms and mobile applications, among other trends. Despite the fact that online platforms and mobile applications have existed in this sector for a long time, the range of services they provide is constantly expanding. Modern services and platforms in this sector can offer services tailored to the flexible preferences of the customer, using advanced technical innovations (data analytics, robotic consultations, forecasting, etc.), providing round-the-clock support and consultations, etc.
Legal affairs
Obligations and requirements to provide financial advisory and broking services, or ancillary services described above
In Russia, brokerage activities are carried out on the basis of a license, and investment consulting activities are subject to the investment adviser’s membership in a self-regulatory organization of financial market participants and inclusion in the unified register of investment advisers. Investment consulting activities involve the provision of individual investment recommendations, which shall have certain characteristics. If the provision of individual investment recommendations is carried out through programs for electronic computers, including the Internet, such programs are subject to accreditation by the Bank of Russia.
As a rule, investment advice (including robo-advisory) provided on various Internet platforms does not have the characteristics of individual investment recommendations provided for by law and can be provided without an appropriate license. Such investment advice is provided on the basis of a civil contract and (or) user agreement concluded with the user. In some cases, these services are provided on Internet platforms that simultaneously provide brokerage services.
Auto trading may be recognized as a brokerage activity and require an appropriate license if it is used by the broker in the interests of the customer.