Date: 12.07.2022Does the business model include elements of portfolio management subject to an authorisation requirement even if the customers themselves can or must make extensive adjustments to settings such as those listed below when selecting the signal providers and the model portfolios?
• scalability of the trade to be realised, e.g. not 100% but only 10%, or even 200%;
• weighting of individual signal providers among several providers;
• exclusion of certain regional sectors or asset classes, etc.
• weighting of individual signal providers among several providers;
• exclusion of certain regional sectors or asset classes, etc.
If the platform performs portfolio management subject to an authorisation requirement, particular specifications made by customers generally do not change anything in terms of the nature of the service, because the operator still has scope for discretion with regard to buying and selling. In this regard, specifications made by customers within the context of portfolio management are irrelevant and commonplace. The service can generally only be considered contract broking, and not portfolio management, if customers make the investment decision and all its parameters entirely on their own (see the example of the European Securities and Markets Authority (ESMA) on page 15 of the document ESMA/2012/382).
