What is Digital Financial Advisory?
A service that provides automated financial product advice using algorithms and technology with limited or no human financial advisor involvement.
How Does Digital Financial Advisory Service Work?
1. The client takes a risk assessment to outline their investment objectives, time horizon, and risk tolerance, and the service provider validates the client’s identity through an electronic KYC form.
2. The algorithms analyze the client's input and transform it into either general financial advice or personalized recommendations based on their specific profile.
3. To execute orders based on the recommendations, the client can work with their Digital Financial Advisory Service provider if they hold the necessary licenses (example: an investment portfolio manager and / or a custodian and / or a securities broker licensed by the Authority). Alternatively, it can be executed by an intermediary with the proper licenses
The framework of this service is available in Chapter Three of Module Nineteen (Financial Technologies) of the Executive Bylaws of Law No. 7 of 2010 and their amendmends.
