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FinTechs belonging to this category operate trading platforms or online marketplaces for investment opportunities or certain financial contracts – e.g. securities, factoring etc. and sometimes furthermore provide contact to financial experts and tools for the decision-making.
FinTech-signalling and social trading platforms provide users with the opportunity to exchange opinions on financial investments and offer signal providers and traders the possibility to make their securities portfolio publicly visible. This way the portfolios can be linked to and followed by other traders via the platform automatically, so that the trading and investment strategy of the followed traders can be copied.
The platform often cooperates with a financial services provider or a credit institution where both the trader and the follower hold their securities accounts, and which execute the orders both of the trader and the follower and to which the platform passes on the trading decisions.
Introduction
Attitude of the country towards trading, social trading or signalling platforms
Albanian former law on securities, adopted in 2008, constituted an ambiguous and underdeveloped legal act. Therefore, the Law in force on Capital Markets, adopted in 2020, repealed the former law on securities and partially approximated with EU directives and regulations, aiming to implement more rigorous fit and proper standards on stockholders, administrators, and board members. In addition, the law implemented the principle of investors highest interest, restricting preferential treatment, and assuring investors’ data confidentially.
Albanian authorities are engaged into informing the society regarding trading, social trading or signalling platforms through booklets and brochures made available on their websites, for purpose of encouraging them to embrace these types of investments. Nonetheless, these investments’ modalities may not be considered as widely recognised or spread in the Albanian market.
Legal affairs
Obligations and requirements to provide trading, social trading or signalling platforms described above
Albanian Law on Capital Markets covers trading, social trading or signalling platforms as Multilateral Trading Facility/Platform (MTF), and Organised Trading Facility/Platform (OTF). MTF is a multilateral system, operated by an investment company or market operator, which brings together multiple third parties purchasing and selling interest in financial instruments – within the system and in accordance with non-discretionary rules – in a way that results in a contract. OTF is a multilateral system, which is not a regulated market or MTF and in which multiple third party purchasing and selling interests in bonds, structured finance product, emissions allowances or derivatives are able to interact in the system in the way which results in a contract.
Any company intending to conduct trading, social trading or signalling platforms is required to get registered, licensed, and recognised in Albania. The application to obtain the license with the Albanian Financial Supervisory Authority consists of information on the company, structural organisation, stockholders, business plan etc., and a filing fee of 50,000 ALL – approx. EUR 430. Upon receiving the Authority’s decision on granting the license, the company is required to pay the registration fee at the amount of 300,000 ALL – approx. EUR 2,500.
Law on Capital Markets remains vague concerning the minimum share capital required for the companies conducting trading, social trading or signalling platforms as such activity may be related to other activities provided by the company. However, in any case, the minimum share capital shall not be less than 16,250,000 ALL – approx. EUR 134,000.