Introducing the Suitability & Appropriateness assessment

16.12.2020

mintosblog

As we continue working towards becoming a regulated marketplace, we’re introducing an assessment to check whether the ways of investing we offer are suitable and appropriate for investors who apply to use them. 

Key takeaways

  • The Suitability & Appropriateness assessment will help us ensure we’re offering investment products tailored to the investors’ experience level and protect investors who are only starting to invest in loans
  • The assessment also evaluates the investors’ ability and willingness to take on the risks involved in investing in loans
  • After Mintos achieves a licensed status, investors will only be able to use products that are considered suitable and appropriate for them as per the outcome of the assessment
  • The assessment is a regulatory requirement and will be rolled out gradually, starting from 16 Dec

 

Suitability & Appropriateness explained

The Suitability & Appropriateness assessment aims to ensure that investors are aware of the risks of investing on Mintos, and that their financial situation allows them to bear these risks. It also evaluates whether the products offered by Mintos fit investors’ expectations and needs, and are appropriate for their knowledge and experience.

The assessment consists of 4 sections of questions which were developed in accordance with MiFID regulation: 

1. Financial situation: Here you’ll be asked a few questions about your annual income and net worth.

2. Knowledge: This section assesses your investment knowledge to determine whether you’ll be able to understand the terms and risks involved in investments on Mintos.

3. Experience: This section focuses on your experience investing in specific asset classes.

4. Investment goals: Lastly, you’ll be asked a few questions about your investment goals and risk appetite.

How the assessment works

As this Suitability & Appropriateness assessment adds new functionality to Mintos, we’ll roll it out in stages to make sure everything works as expected. That means you might not be asked to take the assessment immediately. If you are asked to answer the suitability assessment questions, please fill it in at your earliest convenience, as it will become a compulsory requirement for using Mintos in the future under the new license. 

We’ll notify you in your account once the assessment is available to take. To start the assessment, go to your Overview page and click Start assessment. The assessment will take 10-15 minutes, but you don’t have to complete it in one go. You can exit anytime, your answers will be saved and you can continue later. After you’ve finished the assessment, we’ll calculate your results. 

Depending on your answers, we’ll offer ways of investing that are considered suitable and appropriate for your needs. After Mintos becomes licensed, you’ll be able to use these products exclusively. If your situation changes, you can update your answers from your Profile, and the assessment results will be recalculated. 

 We’ll keep you updated about our progress obtaining the license.

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