Name
Global FinTech Guide
Country _ Name
Slovenia
SectionTitle
Financial advisory and broking services including robo advisory and auto-trading
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

Use of digital tools that help clients manage investment portfolios online are becoming increasingly popular in Slovenia; however, fully autonomous robo-advisory or algorithmic auto-trading solutions are still limited. Slovenian investors access such services mostly through international platforms.

Legal affairs

Obligations and requirements to provide financial advisory and broking services, or ancillary services described above

Financial advisory and broking services, including robo-advisory and auto-trading, are considered investment services and activities, which can be provided in Slovenia only by:

  • brokerage companies to which the Slovenian Securities Market Agency has issued authorisation for the provision of investment services and activities;
  • banks to which the Bank of Slovenia has issued authorisation for the provision of investment services and activities;
  • investment firms established in an EU member state (which are not a bank or a special financial institution) that establish a branch in the Republic of Slovenia or are entitled to provide investment services and activities directly;
  • investment firms established in a third country (which are not a bank) that obtain the permission of the Slovenian Securities Market Agency to establish a branch in the Republic of Slovenia;
  • banks or special financial institutions established in EU member states which establish a branch in the Republic of Slovenia or are entitled to provide investment services and activities in Slovenia directly;
  • third-country banks which obtain the permission of the Bank of Slovenia to establish a branch in Slovenia and are entitled to provide investment services and transactions.
Management Companies and Alternative Investment Fund Managers (AIMF), to which the Slovenian Securities Market Agency has issued authorisation for the provision of investment and ancillary services, are authorised to perform only certain investment services, such as the management of financial instruments (individual portfolio management), investment advice related to financial instruments, custody and administrative services connected with units of investment funds, and, in the case of AIFMs, also the reception and transmission of orders for one or more financial instruments.

The brokerage companies providing investment services and activities are subject to capital requirements from Act on prudential supervision of investment firms and other applicable rules. The minimum amount of the initial capital required for a brokerage company wishing to perform all investment services is EUR 750,000. The banks providing investment services and activities are subject to capital requirements from Banking Act and other applicable rules. The minimum amount of the bank's initial capital is EUR 5,000,000. The bank must ensure that it always has adequate capital to cover capital requirements.

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

N/A

Economic conditions

Market size for financial advisory and broking services as well as adjacent services and biggest companies in this business area

By the end of 2024, Slovenia’s financial instruments market included 4 licensed brokerage firms: ILIRIKA d.d., Equito d.o.o., BELEKTRON d.o.o. and Bitstamp financne storitve d.o.o. Four banks also offered investment services under the Bank of Slovenia’s license. Additionally, 5 banks and 3 savings banks conducted proprietary or client trading under the Banking Act. There were 4 licensed asset management companies, 3 of which also provided custody and administration; one additionally offered investment advisory services. Furthermore, 612 investment firms from other EU Member States were able to provide services in Slovenia. However, Slovenian FinTech sector for broking services is not yet developed.

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

N/A

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