Global FinTech Guide
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

Investment advice activity may be provided by intermediary institutions, investment and development banks and portfolio management companies provided that a prior authorisation is received from the CMB. Comments and recommendations for investors, including expressions to encourage the trading of certain capital markets instruments or that may otherwise affect investor decisions, are regarded as investment advice. Comments and recommendations based on an anonymous investor, regardless of the risk or return criteria of a particular person, are referred to as general investment advice. General investment advice is not subject to licence on certain conditions. For instance, subjective and exaggerated expressions such as "the best" and "the most reliable" must not be included in the comments and recommendations offered, as they might mislead investors or exploit their lack of knowledge and experience. Also, a warning banner should be visible stating that the investment advice provided is not within the scope of investment consultancy, as the advice is not personalised and may not be suitable to the advice receiver, and thus may have an undesirable effect.

Moreover, reception and transmission of orders in relation to capital market instruments, execution of orders in relation to capital market instruments in the name and account of the customer or in their own name and in the account of the customer, dealing on own account and individual portfolio management are regarded as investment services and can only be provided by investment institutions licensed by the CMB.

Legal affairs

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

Providing financial advice is an investment service and activity and can be carried out by intermediary institutions. In order for the CMB to permit the establishment of intermediary institutions;

  • They must be established as joint-stock corporations;
  • All of their shares must be registered under the name of the shareholders;
  • Their shares must be issued against cash payment(s);
  • Their initial capital must not be less than the predetermined amount by the CMB, with the condition that, in any case, it is not less than the minimum shareholders’ equity requirement for intermediary institutions having been broadly authorised, pursuant to regulations of the CMB pertaining to capital adequacy;
  • Their Articles of Association must follow the provisions of the CML and other relevant regulations;
  • Their founders must meet the conditions indicated in the CML and other relevant regulations;
  • Their shareholding structure must be transparent and clear.

Trade name of intermediary institutions shall contain any one of the phrases “securities” or “stocks” to represent investment services and activities engaged in. Broadly authorised intermediary institutions may use either one of the phrases “investment securities” or “investment stocks”.

Founders shall apply to the CMB with Articles of Association prepared in accordance with the conditions for establishment and with other documents proving that they meet the conditions. If deemed necessary by the CMB, some additional information and documents may also be requested in the application for establishment.

The CMB, regarding applications for establishment, operational license, and changes in
shareholding structure, may request intermediary institutions and their legal entity partners to
specifically have independent audit and/or rating performed.

Restructuring processes and amendments to Articles of Association of intermediary
institutions are subject to the prior consent of the CMB.

In order to be authorised by the CMB to operate pursuant to regulations of the CMB pertaining to investment services and activities and ancillary services, the intermediary institutions are required to fulfil the following general conditions:

  • They must not have lost any one or more of the conditions for establishment;
  • Their minimum initial capital must have been fully paid in cash;
  • Obligations stipulated in the regulations of the CMB pertaining to capital adequacy depending on the preferred services and activities, must have been fulfilled;
  • An organisational structure fulfilling the conditions listed in Article 10 hereof must have been established;
  • The conditions relating to the personnel to be employed must have been fulfilled;
  • General manager and his/her deputies must fulfil the conditions,
  • The data processing infrastructure required for having a sound operational management must have been established;
  • The security measures required including but not limited to insurance, must have been taken regarding assets kept within the intermediary institution;
  • all collaterals, if any, stipulated in the related legislation must have been established.

Moreover, in order to be eligible for receiving authorisation to provide investment advice activity, in addition to compliance with required general conditions for commencing operations in the regulations of the CMB regarding principles on the establishment and operation of investment firms, investment firms are required:

    a. to have satisfied the condition of minimum shareholders’ equity specified for this activity in the regulations of the CMB with respect to capital and capital adequacy requirements for intermediary institutions,
    b. to have employed an adequate number of investment advisors holding a bachelor’s degree, and having a minimum 3 years of experience in financial markets,
    c. to have established a research unit to conduct investment advice activity and to have assigned a unit manager, and an adequate number of research specialists reporting to the unit manager.

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

Investment services are mostly provided by traditional investment companies and FinTech companies having these services is not common due to strict CMB supervision.

Economic conditions

Market size for financial advisory and broking services as well as adjacent services and biggest companies in this business area

No studies have been conducted targeting only the FinTech companies in this field.

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

Financial advisory services or adjacent services is provided by traditional investment companies and FinTech companies in this field are not common due to strict CMB supervision.



© 2022, Moroglu Arseven. All rights reserved by Moroglu Arseven as author and the owner of the copyright in this chapter. Moroglu Arseven has granted to Multilaw non-exclusive worldwide license to use and include this chapter in this guide and to sublicense Lexis Nexis, a division of RELX Inc. and its affiliates certain rights to use and distribute this guide.

The information in this guide provides a general overview at the time of publication and is not intended to be a comprehensive review of all legal developments nor should it be taken as opinion or legal advice on the matters covered. It is for general information purposes only and readers should take legal advice from a Multilaw member firm.


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