Mintos to launch regulated notes this month

Mintos is finally set to launch its regulated notes this month, after delays due to “unforeseen limitations in some EU countries”.

The European alternative lending marketplace has been working on transitioning to notes since it secured its investment firm and electronic money institution licence in August last year.

As the notes are regulated, they will give investors better protection.

Mintos previously said it was on track to launch the notes in the fourth quarter of last year but this was delayed due to the limitations of local tax and institutional systems in some EU countries that “were not fully adjusted for new fintech products”.

Mintos has now announced that the first notes will launch on its marketplace on 25 May to mark the start of the transition period.

Users will be able to invest in both the traditional product and notes until 30 June. Then from 1 July, they will only be able to invest in notes on the marketplace and buy and sell notes on the secondary market.

All investments made into the existing product before 30 June will remain unaffected and run as normal until the respective loans are repaid, Mintos added.

Read more: Mintos focuses on transition to Notes following stellar December

“Once we introduce notes, the most significant change for investors will be the additional layers of investor protection and transparency that come into effect,” Mintos said in a blog on its website.

With the new, regulated products, Mintos investors will be protected by the MiFID II investor protection framework, prospectus regulation, packaged retail investment and insurance products (PRIIPs), and investor protection law.

They will also be protected by a national investor compensation scheme in the event that Mintos collapsed.