European peer-to-peer lending platform Twino is planning to become an investment brokerage company.
The Latvia-headquartered firm has applied to the Financial and Capital Market Commission (FCMC) – the financial services regulator in its domestic market – for an investment brokerage licence.
Once approved, the new legal entity will take over the responsibilities of the Twino investment platform, the firm said on Tuesday.
In addition to Twino investor protection guarantees, investors will be eligible for the FCMC investor protection mechanism of up to €20,000 (£17,664).
The company also revealed that it is working together with the sector association on best practice guidelines for Latvia’s collective financing sector.
“We have commenced active preparatory work on the acquisition of an investment brokerage company license,” said Roberts Lasovskis, chairman of the new company’s board.
“Among other things, we have been collaborating actively with the FCMC for several months now, drafting the necessary procedures and adapting the work of the platform, anti-money laundering, and the corporate governance processes required for the receipt of the license.
“Moreover, we are also working on the business plan and investor protection mechanism for the newly created company.”
“Currently, work is devoted to regulating this industry – companies that did not wish to obtain a license have discontinued or will discontinue, their operations in Latvia in the near future, while the remainder will undertake all the necessary activities to commence the process for obtaining a license,” said Santa Purgaile, FCMC chair.
“The FCMC provides all of the required consultative support for those companies which have embarked on the licensing process.”
Twino aims to complete all the preparatory work for receiving the license by late summer, and to receive the license by the end of the year.