OM VÅRT FÖRETAG

Betrodda finansiella tjänsteleverantörer i hela Europa och Asien

Security

All investments involve different levels of risks. Potential investors should carefully consider specific risk factors and consult with their own professional advisors before deciding upon the purchase of the claim rights or securities. In addition, investors should note that several of the described risks can occur simultaneously and those together with other circumstances can have a stronger impact.

1. Liquidity risks

The cash flow for the investments in claim rights or securities is mirrored with the cash flow of the consumer loans. The borrower can fail to make scheduled payment, and the investor will not get investment repaid in scheduled time. The loan originator will perform payments in the case of a delay in the borrower’s payment schedule according to the assignment agreement or loan agreement as well as prospectus. In the case that a loan originator does not fulfil his obligations, investors can face a liquidity gap, especially if they rely only on payments from the investing in claim rights or security. In case of the loan originator’s insolvency, investors have the same right to receive their investment as other creditors of the relevant group in accordance with applicable regulatory enactments.

How to decrease the risk?

  • Investors should consider investing in claim rights or securities with the Buyback Guarantee or additional guarantee.
  • Investors should diversify the investment portfolio by investing in claim rights or securities backed with different loans and across different loan originators.

2. Income level is not guaranteed

The Borrower may repay the principal amount at any time or the consumer loan agreement might be cancelled by parties that ensure early repayment of the claim rights or early redemption of the securities. If prevailing rates are lower at the time of the repayment, an investor may not be able to reinvest the proceeds in comparable claim rights or security at an effective interest rate as high as the interest rate in the previous period, and the real return on the investments could be lower than the initially planned return.

How to decrease the risk?

  • The investor should configure their Auto-invest functionality to invest in claim rights or securities that match its investment goals.

3. Currency exchange risk

Investments are performed in EUR currency. If investors measure their investment returns by reference to a currency other than EUR, an investment will entail foreign exchange-related risks. Among other factors, the possible significant changes in the value of the EUR relative to the currency by reference to which investors measure the return on their investments. VIAINVEST has no control over economic, political, and other factors. Furthermore, depreciation of the EUR against the currency by reference to which investors measure the return on their investments could cause a decrease in the effective yield of the relevant investment below their stated interest rates and could result in a loss to investors when the return on such investment is transferred into the currency by reference to which the investors measure the return on their investments.

How to decrease the risk?

  • At the moment only investments in EUR are available on VIAINVEST and investors should measure their return in EUR currency only, but we look for opportunities to add other currencies in future.

4. IT risks

Moreover, our IT strategy is based on utilizing the most sophisticated technologies and solutions available on the market. Therefore, we intend to continue making substantial investments in the IT systems and to adapt its operations and software to support current and future growth. VIAINVEST is required to continually upgrade its global IT system, and any failure to carry out such upgrades efficiently may result in the loss or impairment of its ability to do business or in additional remedial expense. In addition, there can be no assurance that VIAINVEST or Loan originator will be able to keep up to date with the most recent technological developments due to financial or technical limitations. Any inability to successfully develop or complete planned upgrades of IT systems and infrastructure or to adapt its operations and software may have a material adverse effect on our business, financial condition, results of operations, prospects or cash flows.

How to decrease the risk?

  • We are devoting our time and resources to protect our systems from breach or failure to ensure our Platform is working perfectly all the time.

5. Regulatory and compliance risks

There is a risk that any change may have a negative effect on a VIAINVEST or Loan originator’s ability to carry out its business – for example, a regulatory change could restrict the products and services the company can offer in the future.

How to decrease the risk?

  • Loan originators are subject to laws and regulation in the countries they operate in. VIAINVEST does the due diligence of every Loan originator before adding it to the Platform.
  • VIAINVEST itself is a licenced investment brokerage firm and it is on its way to transform the business from claim rights to security selling, although it is already strictly supervised by FCMC.

Risk Management

As investment platform professionals, we provide our investors with secure and fast access to the marketplace where claim rights are sold which will be replaced with the asset backed securities in the nearest future.

VIAINVEST is a licensed investment brokerage company

This means VIAINVEST has to comply with regulatory requirements and it is supervised by the Financial and Capital Market Commission of Latvia.

VIAINVEST has put significant efforts into increasing the quality of investment services and improvement of business processes to develop IT systems in accordance with growing market demand.

Skin in the game and Buyback Guarantee

Loan originators have a “skin in the game”, meaning they always keep at least 5% of each loan, so investors will never be fully committed to a particular loan.

We care about the transparency and assurance of our investors therefore all of the claim rights sold on the platform are covered with Buyback Guarantee. Please note, that business loans are not covered by Buyback Guarantee, although they are covered by Group Guarantee.

Auto-invest

Auto-invest permits an investor to set rules for the platform to be used as the basis for all automated future investments. After setting preferred rules, our system will automatically make investments in loan contracts/securities matching rule sets once they become available for investments. Auto-invest settings can be easily changed or stopped at any time by accessing the investor profile. Auto-invest allows to save time and make the investment process more effective but does not exclude an opportunity to make manual investments in parallel. Investors can also diversify investments by creating several auto-invest portfolios.

Investor Protection

Products suitability

At VIAINVEST we really care about the Investors welfare, therefore we ask you to provide information about your investing knowledge and experience to make it possible for us to evaluate if the products and services are appropriate for you. We encourage you to respond to the questions, after that you will get information about your Investor’s category and products suitability from us.

Investor category

VIAINVEST will attribute investor’s category to each Investor. The investment firm license requires us to assign investors one of three MiFID II status categories (retail client, professional client, or eligible counterparty) to make sure they receive the appropriate protection and support for the level of experience and knowledge. If you don’t agree with the category assigned to you, please apply for a category change by contacting the Customer Support Team.

Investors Protection Mechanism

The funds of those investors who have completed the appropriateness assessment questionnaire will be kept in a VIAINVEST segregated bank account, ensuring the safety of these funds and separating VIAINVEST own funds from investors’ money.

As from the investment brokerage licence day investor protection mechanism applies which is imposed by the state prescribing the compensation of up to EUR 20,000 for each individual investor according to the requirements of EU Directive 97/9/EC. Please take into consideration that the investor protection mechanism applies only to investments in securities and to those investors that have fulfilled appropriateness assessment questionnaire. The protection mechanisms and benefits do not apply to existing investments in claim rights or loans, but all investments made in claim rights or loans will remain active in investors’ portfolios until they reach their due date.