Today we are saying goodbye to our old model of operations – peer-to-peer loans – and embracing the beginning of a new chapter in the TWINO platform’s operations. From now on, only investments in regulated financial instruments will be available on our platform, and we will let you know as soon as first investments are possible.
You will be able to purchase asset-backed securities (“Securities”) – financial instruments that are backed by underlying loans issued to the borrower, who may be a consumer or a business. The return on the Securities is a fixed interest rate and is applied to the amount invested by the investor that amortizes over the lifetime as the underlying loans are being repaid. The process of investing itself will be very similar to investing in loans, however, a key difference is that Securities are issued the next day an investment is made (your funds will be reserved for the issuance of Securities), and thus interest is accrued starting from the day of the issuance.
Our very first product will be based on individual business loans issued to a loan originator. The loan originator then uses the acquired financing to grant consumer loans to private individuals. These Securities will have monthly interest payments with principal repayment at the end of the term. You will be able to read more detailed information in the Base Prospectus, Key Information Document, and Final Terms that will be published upon launch.
Here are some of the key characteristics of the first product:
• Loan originator: TWINCARD SP. Z O.O.
• Country: Poland
• Interest rate: 12% p.a.
• Term: 3-12 months
Just as before, there will be no costs to invest in the product or to sell it to other investors. Selling Securities will also be possible similarly as before once the Securities have been issued.
Please note that we will be withholding tax on the profits that you obtain from Securities. You can read more about it here.
Benefits of investing in Securities
• Investors are safeguarded by the strict controls and regulations that are applicable to both the issuance and trading of Securities.
• Securities come with a variety of documents to provide the highest level of transparency. With such, investors can make well-informed investment decisions.
• Investors will become subject to the investor protection mechanisms according to the requirements of the Financial Instruments Market Law and the relevant Directive (MiFID II), Packaged Retail Investment and Insurance Products (PRIIPs), the Investor Protection Law, Prospectus Regulation, and other regulations which aim to further protect the interests of investors.
• Investors will be entitled to compensation according to the Investor Protection Law should TWINO fail to meet its obligations in respect to Securities in full and within time limits.
• Investors will still be able to benefit from free investment services, as there are no fees associated with investing in Securities.
Auto-Invest functionality
If Poland has already been a selected criteria in your portfolios and the term includes the terms mentioned above, your Auto-Invest will continue to invest as usual. However, to ensure a seamless transition to investments into Securities, please note that Auto-Invest will no longer consider the settings “Per loan”, “Loan type”, “Loan rating” and “Loan status”, as these criteria are not applicable to Securities.
Please keep in mind that Auto-Invest is considered a portfolio management service, and as such, to protect investors, it might not be available to some of you according to the suitability & appropriateness assessment. If your circumstances have changed since you completed the assessment, you can repeat it at any time in the My Profile -> Account status section on the platform, and a re-assessment will occur.
