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
Financial advisory services are currently provided by banks, companies for management of investment funds in the field of investment advice, as well as companies for investment advice, pursuant to a license issued by the SEC. Robo-advisory is currently underregulated in North Macedonia. However, the NBRM has a generally positive outlook on regulating these types of services, especially highlighting the fact that robo-advisors can offer benefits to smaller investors, by offering automatic solutions for portfolio management. A key condition for the development of these services is the development of trust and maintenance of the services.
Obligations and requirements to provide financial advisory and broking services, or ancillary services described above
Please refer to points a) ii. and b) iii. above in regard to the license requirements for banks and companies for management of investment funds.
Companies for investment advice can offer investment advice services pursuant to a license issued by the SEC. The request for obtaining such license must be submitted along with required documents and information, which differ depending on whether the founder of the company for investment advice is a legal entity or natural person. The documents are prescribed in a rulebook adopted by the SEC. These companies must have and maintain at all times its basic share capital in the amount of EUR 10,000 in MKD countervalue.
Registration costs include a fee for reviewing the application in the amount of MKD 60,000 (approx. EUR 1,000).
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
Pursuant to the Annual Report published by the SEC, there is only one (1) company for investment advice operating on the market in North Macedonia. There is no information on the revenues and customers in this area. The market for financial advisory services is relatively small.
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