Security

How investors are protected on Mintos

Investment firms like Mintos are subject to financial regulation. 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.

Increased protection for investors thanks to a regulated environment

Investors are protected for up to €20 000 under the investor compensation scheme (details and exceptions below)

Your assets are held separately from Mintos’s assets

FCMC

We’re regulated by the Financial and Capital Market Commission (FCMC), the competent authority for investment services supervision in Latvia.

Financial regulation benefits investors

In a regulated environment such as Mintos, investors benefit from additional layers of protection and transparency.

The financial system is an integral part of our daily lives. For example, we need banks to hold our money or make payments. Likewise, we need investment firms to invest our money to gain future returns. Poorly regulated financial institutions have the potential to harm consumers and undermine the stability of the financial system. 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.

The requirements of a regulated environment create real benefits for investors.

Applicable regulation includes

MiFID and MiFIR

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Prospectus regulation

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Investment firm prudential regime

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Suitable and appropriate product offering

Mintos is required to safeguard investors from taking on excessive risk by assessing their individual situation.

As part of being regulated, Mintos must ensure that investors are aware of the risks of investing on Mintos, and that their financial situation allows them to bear these risks. To meet this requirement, we ask investors to complete an assessment that checks whether our products fit their expectations and goals, and are appropriate for their knowledge and experience.

The outcome of this assessment determines which products and services will be available to the investor. Investing on Mintos isn’t risk-free, so our offering, for example, wouldn’t be considered suitable for investors who wish to only preserve capital.

Investor-friendly presentation of information

To help investors make informed decisions about the investment, they are provided standardized information in a consumer-friendly format. This information is designed to help investors understand the behavior of investment products and compare them with other products. Mintos has also published several disclosures, such as information on investment risk and fees, and Key Information Documents (KIDs).

Safeguarding of investor 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.

Financial instruments belonging to the investors on Mintos are held in the investors’ financial instrument accounts, separately from Mintos’ own assets.

Investors’ funds are protected by holding them in safeguarding accounts in banks licensed in EU countries. These 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.

Investor compensation scheme

The scheme protects investors by providing compensation if Mintos fails to return financial instruments or funds to investors.

Investor compensation schemes are established according to Directive 97/9/EC and apply to all authorized investment firms and banks in the respective EU country. Mintos is regulated by the FCMC in Latvia and is a member of the Latvian investor protection scheme. The scheme protects retail investors on Mintos irrespective of their country of residence.

The investor protection scheme covers situations that typically arise from operational errors, for example, if Mintos is involved in fraud or administrative malpractice or if Mintos goes out of business. 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.

Importantly, the scheme does not protect against investment risks, for example, poor performance of underlying loans, borrower default, or lending company default.

The investor protection scheme does not apply to investments in loans via assignment agreements.

Buyback obligation

A buyback obligation provides an additional layer of protection for investments in specific Notes. It means that if any repayment by the borrower is delayed by more than 60 days, the lending company is obliged to buy back the loan together with any interest. Investors can see whether specific Notes have a buyback obligation in the applicable prospectus.

Learn more about security on Mintos

Managing investment risk

The risks you face on Mintos, and what you can do about them

Mintos Risk Score

What is the Mintos Risk Score and how it can help you make investing decisions

Mintos and your data

How Mintos handles and protects your data, and puts you in control

Protect your account

How you can help protect your account against unauthorized access

Diversification and returns

Why proper diversification matters for your returns

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