FinTech

37 Entering the U.S. Market: A Guide for FinTech Firms When FinTech firms choose to do business as registered advisers in the U.S., they will find local variances with practices in other developed econo- mies, including: KEY CONSIDERATIONS FOR FINTECH FIRMS: • FinTech firms that offer personalized investment advice will be subject to SEC or state oversight (although these lines can be muddled). • Providers of market data and investment analytics tools might not be considered investment advisers, subject to certain exceptions. • Content-based or data-based businesses relating to securities (including some digital assets) must tread carefully. • There are several differences in the U.S. investment adviser framework as compared to other developed economies. DISCRETIONARY AND NON-DISCRETIONARY INVESTMENT ADVICE TREATED LARGELY THE SAME Many other countries more closely regulate "discretionary" advice (where the client has granted trading discretion to the adviser) and more loosely regulate "non-discretionary" investment advice (where the client receives advice and acts on it or not as it chooses). NO CAPITAL REQUIREMENTS Many countries require investment advisers to meet regulatory capital requirements. The United States largely does not. NO FEDERAL "FITNESS" REVIEW DURING REGISTRATION The SEC reviews investment adviser registration applications mainly to confirm the application is complete. LICENSING OF PERSONNEL The SEC does not require testing or licensing of investment adviser personnel. States, however, can require licensing even for personnel at federally registered investment advisers.

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