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

Both the social and political climates towards modern financial advisory services are very positive. The FCA’s policy is to support FinTech innovation generally, in the context of the FCA’s objectives to increase competition and consumer choice, but subject to the FCA’s objectives to protect consumers and ensure market integrity.

Consumer resistance to using new trading and investment platforms and robo advisors is low. Some younger age groups in particular (who may have no experience of using traditional financial advisors) find access to investment markets more accessible through such platforms.

Government policy is to maintain and enhance the UK’s strong position in all areas of FinTech.

Legal affairs

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

Please see the section above regarding asset and portfolio management services. The obligations and requirements for financial advisory services are essentially the same.

A key challenge in this sector is making the distinction between guidance and regulatory advice, which determines whether there is a requirement to be FCA authorised. The issue is the amount of information that a firm can ask and provide to a customer, before the information amounts to a personal recommendation which is classed as regulated advice.

Generic advice, such as the types of products available, is not regulated. Advice on buying and selling specific products, discretionary investment management and advice which is considered a personal recommendation (advice to customers based on their individual circumstances) is a regulated activity under FSMA and requires a firm to be authorised by the FCA. 

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

The FCA has launched an Advice Unit (as part of its Innovation Pathways - see above) whose work includes supporting firms developing automated advice platforms.

The aim of the Advice Unit is to help firms understand the complexities of regulation, understand the rules, the implications for a new business model, and what a firm will need to do to launch a regulated business.

Economic conditions

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

The so-called “WealthTech” sector is substantial in the UK. Because of the challenges in categorisation is not possible to provide precise numbers. 

An estimated 12% of UK adults use a WealthTech app. Some estimates place the rate of growth at 50% a year.

Some of the main robo advisor platforms in th



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