Country _ Name
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

Generally, regulations applicable to more traditional payment channels are applicable to FinTech companies providing the same kind of products and services via a platform or application.

Legal affairs

Obligations and requirements to provide financial advisory and broking services, or ancillary services described above

Providing financial advisory services to Philippine residents would be considered doing business, thus, entities that render financial advisory services, brokerage services and adjacent services (which cater to Philippine clients) must register and obtain a license from the SEC. This entails submission of documentary requirements depending on the corporate vehicle (subsidiary or branch) to be registered.

Offering and Sale of Securities

Entities engaging in advisory and brokering services would need to ensure that they are not effectively offering securities in the Philippines. Securities cannot be sold or offered for sale or distribution to the public in the Philippines unless they have been registered with and approved by the SEC, unless these are exempt, or offered via transactions considered exempt, from the registration requirement.

Dealing in Securities

The business of buying or selling securities in the Philippines is also a regulated activity. No person is allowed to engage in the business of buying or selling securities in the Philippines as a broker or dealer, or act as a salesman, or an associated person of any broker or dealer unless registered as such with the SEC. A person engaged in the offering or selling of mutual funds or pooled funds must be registered as a certified investment solicitor with the SEC. 

Dealing in securities includes the making or offering to make with any person or inducing or attempting to induce a person to enter into or to offer to enter into any agreement for or with a view to acquiring, disposing of, or subscribing for securities.   

Incidental to its function as a buyer and seller of securities, a broker dealer can provide its clients information regarding the securities being offered, manage its clients’ investment portfolio, and provide advisory services.

Trust Business or Investment Management Activities

Lastly, providers of financial advisory and adjacent services will need to ensure that the services do not fall under trust business or investment management activities, which only certain type of entities are allowed to undertake and render such services. Please see related discussion on Asset and Portfolio Management above.

Additional comments regarding the legal situation for financial advisory and broking services, or adjacent services or what FinTech’s must be aware of



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