As part of being regulated, we ensure that our investment offering is suitable and appropriate for investors following the MiFID II investor protection framework.
What does suitable and appropriate mean, and why is it important?
A suitable and appropriate investment means an investor understands the offering and knows the risks they’re taking on, considering their financial situation, knowledge and experience of investing, and investment goals.
Investing on Mintos isn’t risk-free, so it’s important that we ensure our offering is suited to each investor.
How do we determine what’s suitable and appropriate on Mintos?
We ask investors to complete an assessment to ensure they’re aware of the risks of investing in loans on Mintos and that their financial situation allows them to bear these risks.
The assessment evaluates whether our offering fits your expectations and needs in 4 sections:
- Financial situation: They’re asked a few questions about your assets and annual income.
- Knowledge: This section assesses your investment knowledge to determine whether you understand the terms and risks involved with investments on Mintos.
- Experience: This section focuses on your experience investing in specific asset classes.
- Investment goals: Lastly, you’re asked a few questions about your investment goals and risk appetite.
Depending on your answers, we offer ways of investing that are considered suitable and appropriate for you. For example, whether or not Mintos strategies or custom automated strategies are suited to you and how much you can invest using them.
The responsible investing requirement
Based on an investor’s net worth and investment goals, we’re also required to set an amount they can invest up until using automated strategies on Mintos. Once you reach this amount, you can still invest manually. This ensures investors don’t take on too much risk when using automated strategies.
You can see how much you can invest using automated strategies under the Suitability & Appropriateness section of your account settings.
What to do if your circumstances have changed
If 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.
To learn more about the protection mechanisms of regulation, see investor protection on Mintos.