Asset and portfolio management
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.
Attitude of the country towards modern asset and portfolio management services
Asset and portfolio management is a regulated activity which can only be conducted by brokering houses, authorised banks, and branch offices of foreign brokering houses, as well as investment funds, which have obtained a license from the Securities Exchange Commission (SEC). Modern asset and portfolio management is currently cantered around these institutions.
Obligations and requirements to provide asset and portfolio management, or ancillary services described above
Banks and brokering houses can obtain a license by the SEC pursuant to a request and delivery of certain documents and information, including draft statute, description of the services, information on the founders, evidence for the amount of the basic share capital (which amount to EUR 150,000 in MKD counter value for portfolio management services), evidence that the legal entity meets the personnel, technical and organisational conditions in order to conduct these services, business plan etc. The SEC issues the license within 90 days as of the day when the submission has been delivered.
Investment funds can be founded by domestic or foreign natural persons or legal entities which have obtained a license issued by the SEC. The license is issued pursuant to a request and delivery of certain documents and information, such as the draft statute, evidence for payment of the basic share capital at a temporary account in a bank, evidence for the origin of the funds paid as basic share capital, business plan for foundation and operation of the investment fund, evidence for meeting the personnel, technical and organisational conditions for operation, document for appointing a portfolio manager and business license for an investment adviser etc.
Registration costs include a fee for reviewing the application in the amount of MKD 200,000 (approx. EUR 3,250).
Additional comments regarding the legal situation for asset and portfolio management services or what FinTech’s must be aware of in this business area
Market size for asset and portfolio management services and biggest companies in this business area
According to the Annual Report for 2020 published by the SEC, there have been 139 portfolio accounts in 2020, with nominal capital of approx. MKD 149,000,000 (approx. EUR 2,423,000). Portfolio accounts have grown for 19.4% in 2020 compared to 2019. Companies for management of investment funds are the key market players in this area in the country.
Additional comments regarding the economic situation for asset and portfolio management services or what FinTech’s must be aware of in this business area