Mintos unveils ‘refer a friend’ bonus scheme

European lending marketplace Mintos has launched a new rewards programme that pays current investors €50 (£44) for introducing friends to the platform who invest €1,000 or more.

The new investor will get a €50 bonus as well as a one per cent bonus of the average investment in the first 90 days. The promotion runs until 31 May.

While EU-based peer-to-peer lending platforms are allowed to offer these types of investor incentives, they are now banned in the UK under the new, stricter rules around financial promotions.

Last August, the Financial Conduct Authority (FCA) banned “high risk” investment firms such as P2P lending platforms from offering investor incentives such as ‘refer a friend’ bonuses.

Read more: Mintos interest rates dip in February as daily average investments rise

As part of its consumer investments strategy, the FCA wants to reduce the number of people investing in high-risk products that it says do not reflect their risk appetite. This is due to the regulator’s concerns that some people investing in high-risk products do not properly understand the risks involved.

Read more: FCA targets “major shift in financial services” with new Consumer Duty