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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Yes… an automated portfolio… I just wanna select XX number of ETF’s… and put it on auto-pilot…and each time (each week) - when funds are transferred to the account… if $=> buy XX ETF’s (using Fractional Stock Trading) to run the account down to 0 € each time…/iskh

(Even a semi-automated portfolio purchase would also be great… app. gives you a notification - that there are funds in your account… login to account and click purchase of your predefined ETF).

What HonestFIRE mentions + From " [SilvereX]"Ability to automate portfolio purchases. Let’s say, I want to define a 2 or 4 ETF target portfolio I want to purchase every month at a market price, or maybe ±10% within market price I’m seeing now. A possibility to automatically buy all of ETFs in a portfolio in one go upon receiving a direct debit or incoming payment, and a possibility to buy just one position in a portfolio (whichever is furthest away from its target ratio in a portfolio) would be ideal to have.

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I think the semi-automated function sounds like a pretty good way to satisfy regulatory requirements in this space. Fully automated investing is a tricky business as it can be deemed investment advice (which is not our business right now) if we’re just buying investments on your behalf automatically.

I do like the idea of semi-automation as it puts the power back into your hands to confirm you’re happy to place the order! I’ll add this to one of our next product feature sessions. Perhaps the split could be created from a range of instruments you flag or enter into your watchlist so you have the ultimate control over what kind of ETFs/Stocks you’re investing into.

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Hello,

Sorry for bumping this thread. Here what I would like from an investment app: to be available in Romania.

Currently we only have access to Revolut and Interactive Brokers for US stocks.
Revolut works but there is no limit buy / sell. Interactive Brokers is almost impossible to use (account lockout for no reason and slow support on reactivation, stupid buying restrictions that need 2 days to be lifted, high account minimum for currency exchange… if you deposit less than 2000 EUR good luck buying a US stock, or buying anything).

I would pay a monthly fee to have access to a good broker: limit buy / sell, stop loss and take profit, simple commissions structure. Last bid / ask would be a very big plus but I can leave without it.

I really hope you’ll consider supporting Romania as we really have no alternatives here.

Regards,
Bogdan

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Hey Bogdan,

Thanks for sharing!

Romania is definitely on our list for the future, we actually attended the How To Web conference in Bucharest last year and it was amazing to see how many people want access to a better investment product. Revolut seems to be the only ‘easy’ style product available on the market as I wouldn’t consider IB a simple onboarding or user experience :wink:

We will be launching in other areas of the EU first purely because our tech is already setup and ready to go pending license approvals but we have started talking with our partners about how we might be able to launch in markets such as Romania. The main hurdle for us right now is acceptance and custody of the Romania Leu as at present we’re unable to do this with our current setup. There are always options to change this, it just takes more of our time and resources which are currently focused on our phase 1 launch.

Thanks for joining the community though, hopefully at some stage next year we’ll be welcoming you as a user too!

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