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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
The financial advisory services activity was added in 2007 to the companies operating in the field of securities by the Ministerial decree No. 101 for the year 2007 with a minimum capital of 250,000 EGP. These companies must fulfil the requirements, registrations and licenses the FRA imposes.
The acceptance of automated consulting and broking services as well as robo advisory and auto-trading services is gradually growing, although a high percentage of the people either still doesn’t know these services or doesn’t use them.
Legal affairs
Obligations and requirements to provide financial advisory and broking services, or ancillary services described above
A licence from FRA is required in order to provide the financial and investment advisory services The request is presented on a form prepared by the FRA attached with several documents requested to fulfil the requirements of the licence. The licence fee is estimated to be 10,000 EGP.
Another requirement for the licence is a membership in the Egyptian Exchange (EGX): For getting a licence from the FRA, a company needs to apply for membership of the EGX, submit the membership application documents, pay the EGX Membership Fee (10,000 EGP) and sign a membership entry contract.
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
N/A.
Economic conditions
Market size for financial advisory and broking services as well as adjacent services and biggest companies in this business area
According to the Final Annual Presentation: 45 % rise in trade values over 2020, market capital rise of 18 % in 2020, treasury exchange values rose by 44 % during 2020, average daily trading increased by 31 % over 2020, SME’s market capital rose by 155 % compared to 2020, trading values of SMEs rose by 49 % from 2020.
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
N/A.