FRA issues controls for licensing robo-advisors: Asset management companies seeking to utilize robo-advisors will need to have a minimum capital of EGP 15 mn to obtain the required license, under a regulatory framework (pdf) set by the Financial Regulatory Authority (FRA). Companies will also have to submit quarterly reports detailing the robo-advisors’ performance.

Robo-advisors? They are AI-powered virtual financial advisors that manage investment portfolios by assessing customers' risk appetite and making stock recommendations accordingly. The FRA last month announced its intent to introduce the service as part of its digitalization strategy.

Mubasher wants in: Mubasher Capital will work on meeting the requirements and apply for a robo-advisor license “as soon as possible” vice chair Ehab Rashad told Al Borsa. He said that robo-advisors are “a mechanism that will radically change asset management in Egypt,” adding that he anticipates all companies operating in asset management will look to incorporate robo-advisors.

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