Name
Global FinTech Guide
Country _ Name
Turkey
SectionTitle
Financial advisory and broking services including robo advisory and auto-trading
Body
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.

Introduction

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&rd

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