What do YOU want from an investment app?

Hi @m, for us to offer access to the stock markets to retail customers/investors we require a license in each jurisdiction we intend to market our trading app in. With Europe, rather than obtaining a license in each county we expand into we can use the passporting rights of our license in one European jurisdiction to enter other EU countries.

Passporting is a little like going through border control when you travel. Much like the stamp you gain passing through border control, passporting a license works in a similar way.

Passporting requires us to notify the local regulators that we intend to use our passporting rights and enter their jurisdiction. This process typically takes 30 days and the local regulator has the authority to approve or deny your entrance into their country.

In order to be approved, you need to ensure you comply with local regulations. As an example, under Section 3 on Market Transparency and Integrity, Article 31 of the MIFID II regulations, we’re required to provide statements, such as an EOFY statement to our users. In some country across Europe the tax calendar year is different, so we need to ensure we adapt the app so we’re sending our users an EOFY statement in compliance with MIFID II but also in compliance with local regulations ie. the local tax calendar year.

Hope this gives more clarity to how passporting works.

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Ah, maybe this may be the key: “we intend to market our trading app in”. If I find you myself, can’t I just register and start using the app from day 1?

For example, there are P2P lending platforms in the UK which I can freely access. Of course, they don’t market themselves in my country, they’re focused on the UK. However, they will allow lenders from other jurisdictions. They answer only to the UK’s FCA. They don’t answer to my authorities, I do. I’m free to send my money abroad and I’m entering their jurisdiction, it is not them entering mine. So why can’t I enter Lithuanian jurisdiction on my own? :slight_smile:

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@m haha unfortunately it doesn’t work this way for Financial Institutions :wink:

P2P lending is a new space with limited regulations. Without these regulations in place there are also some factors to consider around the safety of your investment. Funds are often not ‘ring fenced’ in the P2P space, so if the company operating the P2P lending goes into administration, your funds can be used to pay out company debts - something to be mindful of. You should find this info in their T&C’s - although some P2P lenders aren’t aware of this or how this works under Company Law.

During our KYC (Know Your Customer) process, as an example, if we only had a license in Lithuania and haven’t passported this yet, you would need to prove you are a resident of Lithuania to use the app. Otherwise we would be in breach of our regulatory obligations and our license could be revoked and or we could be fined massively. This would hinder our ability to then passport our license to another country which hinders our growth and would not be in the best interest of our shareholders, meaning, we would have then breached our fiduciary obligation under Company Law to our shareholders, who are expecting us to grow and to gain a return on their investment. More than this, we want to ensure our users have confidence in our platform, so adhering to the regulations is a huge part of this.

We’re operating in a highly regulated space and a space where trust, transparency and compliance is widely needed and must be adhered to - we take this very seriously.

We’ll be expanding as quickly as we can across Europe so we can reach you, it’s a high priority for us! :ok_hand:

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Ok now I understand it better, thanks for the comprehensive explanation! So the only way to “skip the line” would be to open a Lithuanian holding company :slight_smile:

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@m haha lots of creative thinking :wink: unfortunately this would require us to do company KYC, which is on our roadmap for after launch :wink:

Our KYC partner can do this, however there’s a lot more compliance on company KYC under our AML/KYC obligations. From a compliance perspective, with company KYC you have to do CDD (Customer Due Diligence) and usually EDD (Enhance Due Diligence) to understand the source of funds, who the beneficial owner of the company is and KYCC (Know Your Customers Customers). There’s been a lot of money laundering with banks/financial institutions through company/trust structures, so this is why from a compliance perspective it’s now a more in depth, lengthy and costly process.

I’ll keep you posted on once we launch in your country and or when we’ll open up company KYC.

It’s great to see how keen you are to use the app! :facepunch: We’ll work on making it happen for you asap!

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Hey Mitch!

I was thinking Evarvest could maybe make a category on the app that includes companies which hold strong ethical, environmental social values. For example NextEra Energy whom is pushing the wind power energy in the USA. Why not make money while also helping to create a sustainable future.

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Thanks for sharing @Marcos, I think there is certainly demand for portfolios like this.

I’ve seen some investing platforms that display the environmental impact of investing in a particular company which would be a nice addition I think :slight_smile:

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A Dividend Re-Investment Plan along with fractional shares would be brilliant.
The best example I have seen of this has been from M1 Finance - but that is only available to US investors.

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Hi @JB and welcome to the community :wave: and great suggestion! I’ve responded to your comment on another topic about this just now. Reposting below:

I’m a big fan of fractional shares - they’re definitely on the roadmap!

Noted on the DRIP, that’s come up a few times, so we’re working on adding that to the roadmap. Some companies and ETFs have a DRIP that don’t cost but some charge or have minimums so it’s a little more complex to set up. For companies that don’t have a DRIP, we would need to set up an automatic re-investment to replicate a DRIP. There’s also taxation on either option to consider, so we need to be able to reconcile this in our backend dashboard.

It’s definitely something we’re keen to work on adding.

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I would like an option to switch off the current balance/change of the portfolio value. In a perfect case scenario it would be great if I could just set up the portfolio distribution I want to have and everything else would be done automatically. :slight_smile:

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Thanks for the feedback @HonestFIRE, we’re looking into automation however with that comes additional regulatory requirements so it’s a feature for the future :wink:

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