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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
This is a growing area in Canada. Many of the traditional wealth advisors are advocating for stricter regulation of robo advisors, while at the same time developing their own models. Consumers are anxious for this area to grow. One of the largest robo advisors in Canada, Wealthsimple, has expanded rapidly over the last five (5) years and it has been noticed by traditional advisors.
Legal affairs
Obligations and requirements to provide financial advisory and broking services, or ancillary services described above
Please see above regarding asset and portfolio management. Similar requirements.
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
The size of the financial advisory services market in Canada measured by assets under management is US$3.6 Trillion. The largest financial advisor in Canada (not a FinTech) is Royal Bank of Canada. The other big five banks in Canada (The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, The Toronto Dominion Bank and Bank of Montreal) are all major players in this industry. The largest Canadian FinTech player is WealthSimple with over Cdn$15 Billion in assets under management.
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
The major issue is that such industries are regulated on a Provincial and Territorial basis so you need to comply with the requirements of each jurisdiction