Mintos affiliate news – September 2023

Welcome to a new edition of Mintos affiliate news. Our goal is to provide you with important updates, sneak previews, and other interesting information for your audience. You can use the information provided in this update as inspiration for your own article.

Top investor questions and how to answer them

When investing, it can be hard to know where to start and which resources to use. Many of our new and current investors turn to our blog, academy, or help center for answers. When investors reach out to us using our help center, we’re able to collect the most popular questions. These questions we often answer help investors make informed decisions in this rapidly evolving sector. We encourage asking questions because it’s essential for investors to conduct thorough research and due diligence when considering investments, given the risks and opportunities associated with investments.

For this month’s affiliate newsletter, we’re presenting the top questions that we receive from our investors and how we answer them.

What is the Suitability and Appropriateness assessment?

We place great importance on ensuring that investors make well-informed decisions aligned with their financial goals and risk tolerance. A suitable and appropriate investment means an investor understands the offering and knows the risks they’re taking on. To achieve this, we assess investors’ individual circumstances, including their financial situation, knowledge, experience, and investment goals. By understanding each investor’s profile, we can offer investment products and services that suit their needs and risk tolerance.

What is Anti-Money Laundering?

Money laundering is a criminal process that allows illegally earned money to enter society’s mainstream cash flow. It’s the investment platform’s responsibility to protect your financial ecosystem, thus most financial products and services have regulations such as Anti-Money Laundering to keep illicit money out of the financial world.

Steps to prevent money laundering involve verifying every customer’s identity and origin of the deposited funds. It can also involve asking customers for more details if the bank or service provider detects any unusual activity. For example, a financial institution might ask someone making a deposit into their account to prove where the money came from. For genuine customers who don’t understand the reason for the inquiry, this could seem like an unnecessary hassle, but in fact, these questions are crucial in preventing money laundering.

The good news is that receiving a request for more information shouldn’t stop legitimate investors from being able to use investment platforms. All you have to do is provide the necessary details, and you’ll be on your way again.

Know Your Customer is a part of Anti-Money Laundering regulations. Know Your Customer is the process of identifying and verifying the client’s identity when opening an account and periodically over time. In other words, financial institutions must ensure that their clients are who they claim to be.

What is the risk and regulation on Mintos?

Some risk is normal and should be accepted with all kinds of investing – not just investing in Notes. For example, the value of the investment may decline due to events outside the control of market participants, such as an economic downturn, a financial crisis, or geopolitical events. Please note that risk will vary, depending on the investment and investment platform. At Mintos, We’re regulated by Latvijas Banka, the central bank of Latvia and the competent authority for investment services supervision in Latvia.

In a regulated environment such as Mintos, investors benefit from additional layers of protection, financial regulation, and transparency. In the EU, this includes MiFID II and other applicable regulations. This supervision provides additional protection for investors by making sure financial institutions follow established rules and requirements.

Regulation establishes rules to stop things from going wrong, and in the case that they do, consumers and the financial system are protected by these rules. Mintos is required to hold investors’ financial instruments and uninvested funds separately from its own assets. Mintos must keep accurate records and accounts that distinguish all Notes and investor funds from any assets owned by Mintos. As part of this, Mintos reconciles its internal records and accounts regularly and takes steps to ensure it has adequate controls to minimize the risk of loss for investors.

Investors’ funds are protected by holding them in safeguarding accounts in credit institutions or qualifying money market funds licensed in the EU. Investors’ funds are only used to execute the investors’ orders to invest or withdraw the funds, or to cover fees and charges payable to Mintos. They are held separately from Mintos’ own assets, and creditors of Mintos are not entitled to recover from these funds.

Another protection on Mintos is the investor protection scheme, which covers situations that typically arise from operational errors. The maximum compensation an investor can claim under the investor compensation scheme is 90% of their net loss, up to a maximum of €20 000.

Can I find details about my investments?

In a regulated environment, information about the investment and relevant risks must be presented in a standardized, consumer-friendly format designed to help investors understand the behavior of investment products and compare them with other products.

The Mintos Notes base prospectuses provide details about the risk factors, general information about the underlying loans, the lending company, Mintos, and general transactional information. These base prospectuses have been approved by the competent regulator, Latvijas Banka, the central bank of Latvia.

The Final Terms documents include additional details that are not included in the base prospectus but are required by regulation, such as details about the underlying loans (for example, loan term and currency). They also include the International Securities Identification Number (ISIN) provided by Nasdaq CSD SE’s regional central securities depository. ISIN codes uniquely identify securities, which helps create clarity and accuracy when trading, clearing, and settling investments in securities.

The Key information documents (KIDs) provide concise information about the main features of an investment product in a consumer-friendly format. This includes the risk and reward profile and the costs associated with the product.

Mintos Activity: August 2023

The month of August has shown promising growth on Mintos. Total investments saw a significant increase of €99.5 million worth of Notes funded, and interest earned by investors climbed to €4.3 million.

The average interest rate for August stood at 12.4%, translating to an annualized average net return of 10.3% (YTD 6.8%). The cumulative interest earned by investors on Mintos has now reached €246.5 million, and the total assets under administration are now €594.1 million.

Investor Bonus:

For each new investor who registers and invests €1 000 or more by 30.09.2023, they’ll get a €50 instant bonus, and a 1% bonus of the average investment in the first 90 days.1

We exclusively share this bonus with our affiliate partners.

Terms and conditions apply.

Get started

You’ll earn €5 for every new customer who verifies their account and a 1% bonus of the average investment in the first 90 days.

1  The bonus will be paid to investor’s Mintos account within 2 business days

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