As investors will be able to invest in Notes in a regulated environment on Mintos, we are introducing a responsible investing requirement for all automated investments, in line with the MiFID II framework. 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.
Protecting investors under the MiFID II framework
Through our acquisition of a European investment firm licence and the upcoming release of Notes, investors on Mintos will be protected by the MiFID II investor protection framework.
One of the protection aspects includes making sure 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 offered investment services are appropriate and suitable for the investors’ risk tolerance and investment goals.
What responsible investing means for private investors
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.
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 amount will always be available in the investors’ account settings, under the Suitability and Appropriateness section. We will also inform all investors via email.
In case the amount seems too high or low, please review your answers to the Suitability & Appropriateness assessment and make sure your provided information is accurate.
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. If you have any questions, please contact us and we’ll be happy to help.