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Financial advisory and broking services including robo advisory and auto-trading
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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

Generally, in Tanzania, there is currently a very limited social awareness towards modern financial advisory services, mainly because such services have not yet been widely introduced to the public. This is because at present, the relevant authorities dealing with financial advisory such as the Central Bank, The Capital Markets and Securities Authority and other financial bodies mainly rely on traditional methods of offering financial advice, such as by utilizing qualified professionals well versed in the investing and financial sector. As such, individuals personally communicate with their advisors since other options such as robo-advisors and auto trading services are not currently available. 

Legal affairs

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

Capital Markets and Securities Authority is the regulator of these services through laws and regulations such as The Capital Markets and Securities Act and its Regulations and guidelines. One of the main functions of the authority is to handle licensing and regulating of stock exchanges, dealers, brokers as well as investment advisors. 

A license application must be submitted to the authority along with their stated requirements. Main requirements being: 

  • Application Form
  • Certified copies of a Business License and Certificate of Incorporation
  • Investment advisors must complete a CMSA dealers course offered by the authority 
  • Anti-money laundering policy
  • Business Plan
  • As well as other documentation for key personnel such as – Police clearance certificate, Academic certificates and other documents as required.


FEES STRUCTURE 
Investment Advisors Fees in TZS
Application Fees non refundable 500,000.00
Admission Fees 3,000,000.00
Annual Fees 3,000,000.00
Replacement of License 250,000.00

Investment Advisor Representative Fees
Application Fees not refundable 500,000.00
Admission Fees 1000,000.00
Annual Fees 1000,000.00

Additional comments regarding the legal situation for financial advisory and broking services, or adjacent se

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