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FinTechs belonging to this category offer asset and portfolio management services via an internet platform or software programs and usually manage and dispose of the assets of their customers long or short term according to their specifications without actually holding the property or the possession of those assets. FinTechs, which provide information about and access to overnight or time deposit accounts at national and foreign banks and which execute the transactions to these accounts, also belong to this category. Some FinTechs however only act on request of the customer.
Aside from that some FinTechs offer software or internet solutions enabling users to manage and plan their personal finances on their own by providing graphics, overviews and compilations of their financial data and sometimes indicating financial risks or opportunities, but without actually managing the assets.
Introduction
Attitude of the country towards modern asset and portfolio management services
Russia is following global trends in the development of modern asset management approaches. In particular, in Russia, approaches such as robo-advising, investing in non-exchange traded investment funds and the application of modern technologies to automate asset management processes (machine learning, algorithmic trading, big data analysis, blockchain, trend forecasting) are utilized.
Furthermore, mobile services and platforms for asset management are continuing to evolve, constantly expanding their functionality and the range of services offered to users.
Innovations are also being applied in the banking sector. Specifically, Russian credit institutions have begun offering services such as overnight lending and deposits.
Legal affairs
Obligations and requirements to provide asset and portfolio management, or ancillary services described above
As a rule, according to Russian law, the application of the modern asset management approaches mentioned above is not considered brokerage activities, securities management activities or investment advisory activities. Therefore, the provisions of the Federal Law No. 39-FZ dated April 22, 1996 "On the Securities Market", regulating these types of activities, do not apply to these legal relations.
The use of the mentioned approaches, in particular, is accompanied by the conclusion of civil law agreements between the parties, including agency agreements, commission agreements, asset management agreements, commercial mandate agreements, and service agreements. Often, such legal relations are regulated by mixed contracts that include several types of the above agreements.
Legal relations related to asset management using off-exchange investment funds are regulated by the Federal Law No. 156-FZ dated November 29, 2001 "On Investment Funds". The management of such funds is carried out by management companies, whose activities can be conducted based on a license issued by the Bank of Russia.
Legal relations related to the provision of overnight lending and deposit services by credit institutions are regulated by the Civil Code of the Russian Federation as well as the Federal Law No. 395-1 dated December 02, 1990 "On Banks and Banking Activities".