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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
Online broking and auto-trading platforms are growing fast in Latin America and in Argentina in particular. Financial services provided by companies within the WealthTech and InvestTech segment are experiencing high levels of adoption within the younger generations. Some of the most popular trading platforms in Argentina are InvertirOnline, Balanz Capital, Inviu, Cocos Capital, among others.
Legal affairs
Obligations and requirements to provide asset and portfolio management, or ancillary services described above
Consulting, broking, trading, and portfolio management are financial services activities governed by the Argentine Mutual Funds Law 24,083 (Ley de Fondos Comunes de Inversión) and the Argentine Capital Markets Law 26,831 (Ley de Mercado de Capitales). Depending on the type of investment advice or the financial services offered, the Argentine Capital Markets Law requires a special license to be issued by the National Exchange Commission (Comisión Nacional de Valores or “CNV”).
Depending on the type of financial services provided by online trading and broking platforms, these companies have to obtain a special licence and registration before the CNV whether as Agentes de Compensación y Liquidación (“ALyCs”), Agentes Integrales de Negociación, Agentes de Colocación y Distribución Integral de Fondos Comunes de Inversión, Agentes Productores de Agentes de Negociación, as applicable.
Additional comments regarding the legal situation for asset and portfolio management services or what FinTech’s must be aware of in this business area
Companies providing portfolio management services in Argentina should be aware of complying with anti-money laundering regulations issued by the Unidad de Información Financiera (“UIF”), as well as data protection regulations set forth in Data Protection Law 25,326.
Economic conditions
Market size for asset and portfolio management services and biggest companies in this business area
The volume of the capital market related to portfolio management in Argentina is small, as is the volume of portfolios managed through mutual funds registered under the Argentine Securities and Exchange Commission. Currently, the broker with the highest trading volume in the fixed income market is Galicia Securities SA, who, as of March 2022, traded a volume of approximately $230,000,000,000 in fixed income securities, representing 8.38% of trading in BYMA. Regarding variable income assets (shares, options, and cedars etc.), Allaria Ledesma & Cia SA traded approximately $52,000,000,000 during March 2020, representing a 24.69% share of the volume traded for these assets in BYMA. For stat