In just 2 days’ time, investors on Mintos will be able to invest in regulated financial instruments – Notes! This will be the beginning of the transition from investments in claims (purchased via assignment agreements) to Notes. To help you prepare, we’ve put together a quick recap of the important details.
- On 25 May, the first Notes will launch on Mintos, marking the beginning of the transition period
- Up until 30 June, investors will be able to purchase both claims via assignment agreements (the current set-up) and Notes. Then from 1 July, we will switch to Notes only
- Key benefits for investors include the safeguarding of investor assets, an investor protection scheme up to €20 000, a suitable and appropriate product offering, and increased transparency
- Active Mintos and custom automated strategies will continue to invest as usual, but the investments provided will gradually transition from claims to Notes
Upcoming transition period
On 25 May, we’ll launch an exclusive number of Notes, marking the beginning of the transition from investments in claims (purchased via assignment agreements) to Notes.
The first Notes will go live for 3 lending companies. You can view the respective base prospectuses prepared under Prospectus Regulation and approved by the Financial and Capital Market Commission (FCMC) here:
More Notes will gradually become available after the initial launch date.
Until 30 June, investors will be able to purchase both claims and Notes. Then from 1 July, investors will be able to invest only in Notes. For a more detailed explanation of the changes that come with this transition, please see our pre-launch Notes article.
Key benefits of Notes for investors
Once we introduce Notes, the most significant change for investors will be the additional layers of investor protection and transparency that come into effect.
Safeguarding of investor assets following MiFID II
Mintos is required to hold all Notes and investor funds separately from its own funds, subject to the requirements of MiFID II. These requirements safeguard investors by ensuring Mintos keeps accurate records and accounts that distinguish all Notes and investor funds from any assets owned by Mintos.
See our previous blog post for more details.
Protection of Notes and investor funds under the investor protection scheme
As an authorized investment firm, Mintos is a member of the national investor compensation scheme. Established under Directive 97/9/EC, the scheme protects investors by providing compensation if Mintos fails to return financial instruments (in this case, Notes) or investor funds to investors.
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.
To learn about the details and exceptions, visit our page on investor protection.
Suitable and appropriate investment product offering
Once Notes launch on 25 May, we’re required to offer ways of investing deemed suitable and appropriate for an individual investor, based on their answers to an assessment. This ensures investors don’t take on excessive risk – as investing on Mintos isn’t risk-free. In addition, the responsible investing requirement also comes into effect.
If you find that your circumstances have changed since you last completed the assessment, you can update your answers at any time in the Suitability & Appropriateness section of your account profile.
Increased transparency for investors
Investors will have access to in-depth base prospectuses and “Final Terms” documents covering information about Notes.
Prepared under Prospectus Regulation and approved by the FCMC, a Mintos Notes base prospectus aims to help investors make well-informed investment decisions.
You can already view the approved base prospectuses via the FCMC.
Base prospectuses, key information documents for each of the base prospectuses, as well as several other documents on Notes are available on our Notes legal documents page.
Transition of investments for Mintos and custom automated strategies
Once Notes launch, active Mintos and custom automated strategies will continue to invest as usual, but the investments provided will gradually transition from claims to Notes. To learn more about how Mintos manages investments within Mintos and custom automated strategies, see our information document.
For other Mintos legal documents, please see our terms and policies
Please keep an eye out for our special “Mintos Investor Q&A: Let’s talk about Notes” article, which is being published tomorrow!