Financial advisory and broking services including robo advisory and auto-trading
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.
Attitude of the country towards modern financial advisory and broking services
The social climate towards financial advisory services is that these are becoming increasingly common in the Dominican Republic. As for the political climate, there is a digital agenda in place, supported by the Dominican government that plans to contribute with the insertion of modern financial advisory services as well as the digitalization of outdated processes. The ecosystem is developing towards new trends in the financial services industry and use of modern technology.
Obligations and requirements to provide financial advisory and broking services, or ancillary services described above
Financial advisory and equity brokerage services are regulated in the Dominican Republic when such services involve publicly offered securities registered with the Registro del Mercado de Valores. Companies belonging to this category in the Dominican Republic will require an authorization from the Superintendence for Securities Markets; and to register with the Mercantile Registry (Registro Mercantil) and the Tax Authority (Dirección General de Impuestos Internos). Corporate registration requirements will depend on the type of entity and the fees on the capital assigned for its local commercial operations.
Advisory and broking services for investments on a cross-border basis are not regulated in the Dominican Republic.
FinTechs that 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 are not specifically regulated, provided that such services do not include investment advisory on the Dominican security market.
The investment advisor figure is established and defined in the regulation and that, in essence, can provide – on a regular basis – advisory in investment and perform research on the Dominican security market. Investment advisors must be registered with the Registro de Mercado de Valores and authorized by the Superintendency for Securities Markets.
Financial entities, including securities intermediaries are allowed and supported by regulation to adopt modern technology for the provision of services as long as such adoption complies with all requirements to avoid cyber and solvency related risks.
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
Market size for financial advisory and broking services as well as adjacent services and biggest companies in this business area
Information regarding revenues and customers is not readily available.
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