Mintos unveils plans for appropriateness tests

Mintos is planning to introduce appropriateness and suitability tests for investors on its peer-to-peer lending marketplace.

The Latvia-based platform has applied for an investment firm licence in the country and as part of this will introduce tests to assess whether a chosen investment is suitable and appropriate for the investor’s knowledge, experience, financial situation and objectives.

There will be an appropriateness test used for manual and auto investments to evaluate the investor’s knowledge and experience.

If they fail, investors will be able to invest with a warning.

Read more: Mintos reaches €5bn of funded loans

Investors using the Mintos Strategies auto-invest product will need to complete a suitability test that evaluates their financial situation and investment objectives, as well as their knowledge and experience. If the test is failed, some of the investing strategies might not be available.

Mintos also said that being regulated would provide investors with protection of up to €20,000 (£17,700) if the platform collapsed and it will be boosting its anti-money laundering and know your customer processes.

Meanwhile, the platform has changed the point at which lending companies must start paying interest on pending payments to investors.

Previously, originators had to start paying interest on pending payments if they hadn’t been sent to investors after eight days but this has been changed to 11 days to allow for delays in bank transfers.

Read more: Mintos hails record breaking year