Name
Global FinTech Guide
Country _ Name
United Rep of Tanzania
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

Generally, in Tanzania, there is currently a very limited social awareness towards modern financial advisory services, mainly because such services have not yet been widely introduced to the public. This is because at present, the relevant authorities dealing with financial advisory such as the Central Bank, The Capital Markets and Securities Authority and other financial bodies mainly rely on traditional methods of offering financial advice, such as by utilizing qualified professionals well versed in the investing and financial sector. As such, individuals personally communicate with their advisors since other options such as robo-advisors and auto trading services are not currently available.


Legal affairs

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

Capital Markets and Securities Authority is the regulator of these services through laws and regulations such as Capital Markets and Securities Act (Cap. 79 R.E. 2022), Capital Markets and Securities (Conduct of Securities Business) Regulations, 2019, Capital Markets and Securities (Collective Investment Schemes) Regulations, 2021, Capital Markets and Securities (Licensing) Regulations, 2021 and Guidelines issued by the Capital Markets and Securities Authority (CMSA). One of the main functions of the authority is to handle licensing and regulating of stock exchanges, dealers, brokers as well as investment advisors. A license application must be submitted to the authority along with their stated requirements. Main requirements being:
  • Application Form
  • Certified copies of a Business License and Certificate of Incorporation
  • Investment advisors must complete a CMSA dealers course offered by the authority
  • Anti-money laundering policy
  • Business Plan
  • As well as other documentation for key personnel such as – Police clearance certificate, Academic certificates and other documents as required.
FEES STRUCTURE
Investment Advisors Fees in TZS

Application Fees non refundable 500,000.00
Admission Fees

3,000,000.00

Annual Fees

3,000,000.00

Replacement of License

250,000.00

Investment Advisor Representative Fees

Application Fees not refundable 500,000.00

Admission Fees

 1000,000.00

Annual Fees

 1000,000.00

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

There is a relatively small number of financial brokers and licenced financial advisors. Currently, financial brokers do not exceed 15 in the market. There are no robo advisors (at least licenced ones). At present there are 18 Investment Advisors who are licensed under The Capital Markets and Securities Authority, of which 6 of them are licensed Banking Institutions.
Financial advisory Assets Under Management is projected to reach US $1.94 billion by 2025, with steady growth through 2029. Wealth management services, including advisory and digital platforms, are on the rise, fueled by a rising middle class, financial literacy, and economic expansion .

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

The Capital Markets and Securities Authority leads with licensing frameworks for investment advisors, brokers, and CIS managers; licensed intermediaries have increased by over 60% to 231 as of Feb 2025



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