The company notes that as investors will be able to invest in Notes in a regulated environment on Mintos, they are introducing “a responsible investing requirement for all automated investments, in line with the MiFID II framework.”
In order to make sure investors don’t take on excessive risk, they will “be able to invest with automated investments on Mintos up to a certain amount,” the update explained.
Protecting investors under the MiFID II framework
Via their acquisition of a European investment firm license and the upcoming release of Notes, investors on Mintos “will be protected by the MiFID II investor protection framework,” the update noted.
One of the “protection aspects” includes ensuring that:
Investors aren’t taking on “more risk than they can financially bear by overexposing their portfolio to a single asset class, or by investing too much of their total net worth in a single asset class.”
The announcement also mentioned that the offered investment services “are appropriate and suitable for the investors’ risk tolerance and investment goals.”
In order to make sure investors don’t take on excessive risk, they will “be able to invest with automated investments on Mintos up to a certain amount,” the announcement explained.
This amount is calculated individually “for each investor based on their investment goals and net worth provided in the Suitability & Appropriateness assessment. Once investors reach this amount, they will still be able to invest manually,” the update noted.
As explained by the Mintos team, the amount will “always be available in the investors’ account settings, under the Suitability and Appropriateness section.”
Mintos further noted that they will also “inform all investors via email.”
In case the amount seems too high or low, you can review your answers “to the Suitability & Appropriateness assessment and make sure your provided information is accurate.”
As noted by Mintos, the new requirement will “come into effect together with the launch of the first Notes on Mintos.”
Until then, automated strategies will “not stop if investors have reached their calculated investment amounts” and if you have any questions, you can contact the Mintos team and they’ll be glad to help.