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FinTechs belonging to this category offer asset and portfolio management services via an internet platform or software programs and usually manage and dispose of the assets of their customers long or short term according to their specifications without actually holding the property or the possession of those assets. FinTechs, which provide information about and access to overnight or time deposit accounts at national and foreign banks and which execute the transactions to these accounts, also belong to this category. Some FinTechs however only act on request of the customer.
Aside from that some FinTechs offer software or internet solutions enabling users to manage and plan their personal finances on their own by providing graphics, overviews and compilations of their financial data and sometimes indicating financial risks or opportunities, but without actually managing the assets.
Introduction
Attitude of the country towards modern asset and portfolio management services
As modern payment services, asset and portfolio management services in Croatia have become more popular and continue to grow. However, they are mostly used by the younger population and remain unknown on a wider scale.
Legal affairs
Obligations and requirements to provide asset and portfolio management, or ancillary services described above
In Croatia, portfolio management is regulated by the Capital Markets Act (CMA) and is defined as one of the investment activities.
Investment services and investment activities may be provided only by (i) investment firms granted HANFA’s approval; (ii) investment firms from another Member State authorised to provide its activities in Croatia through branch offices or directly; (iii) branch offices of investment firms from third countries which are granted the approval in accordance with the CMA or the Credit Institutions Act (CIA) or are authorised to provide these services under Regulation (EU) No. 600/2014; (iv) credit institutions with the CNB’s approval for such services and activities; or (iv) a credit institution or financial institution from another Member State authorised to provide these services under the CIA.
For providing investment activities an investment firm needs to obtain an approval. An investment firm may only provide services for which a special approval from HANFA is granted. In order to obtain an approval from HANFA, the applicant – i.e. investment firm – is obliged to deliver documentation providing information about the applicant, services to be provided, organisational structure, risk management systems etc. A special fee for the application process has to be paid by the applicant in accordance with a separate HANFA’s bylaw.
Initial capital for an investment firm providing, inter alia, portfolio management services in Croatia, according to the CMA is at least EUR 75,000 in HRK countervalue.
Additional comments regarding the legal situation for asset and portfolio management services or what FinTech’s must be aware of in this business area
N/A.
Economic conditions
Market size for asset and portfolio management services and biggest companies in this business area
To the best of our knowledge, no comprehensive data is publicly available.
Additional comments regarding the economic situation for asset and portfolio management services or what FinTech’s must be aware of in this business area
N/A.