DoFinance Insights and Outlooks: Investment Brokerage License Received

Dear Investors,

With this we are glad to inform you that DoFinance platform operated by SIA Nectaro, has obtained the Investment Brokerage Firm (IBF) license number 27-55/2023/3 from the Bank of Latvia.

The permitted investment services specified in the are: execution of orders on behalf of clients, portfolio management and placement of financial instruments without undertaking the obligation to redeem financial instruments.

Permitted ancillary investment services specified in the restrictions are: holding of financial instruments.

As of today we are entering a transition period of three months. Within this time DoFinance as an investment brokerage firm, will offer to investors the opportunity to invest in financial instruments, backed by a pool of consumer or business loans. Investment in claim rights will not be available going forward.

The licensing means that DoFinance is subject to strict investor protection rules under EU financial industry regulation.

Namely – common European regulatory requirement; Financial Instruments Market Law and the relevant Directive (MiFID II), Packaged Retail Investment and Insurance Products (PRIIPs), the Key Information Document (KID), the Investor Protection Law, Prospectus Regulation, EU Directive 97/9/EC and other regulations which aim to further protect the interests of investors.

These protection frameworks do not apply to the historical or current type of investments in claim rights, as those are not financial instruments, but will apply to investments in Financial Instruments offered in future.

All new and existing investors will be asked to complete the Suitability and Appropriateness assessment. Without the test done Investors will not be able to make any investments in offered products. The investment brokerage firm license requires 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 for their level of experience, knowledge, and education.

As an investment brokerage firm, Dofinance will be able to offer investors the opportunity to invest in asset-backed-securities in the future. We offer our services in Latvia irrespective of an investor’s country of origin and type of investment.

By investing in claim rights or financial instruments investors are subject to the risk of default, as a result investor will not be able to receive back invested amount in full.

Stay tuned for additional information to follow.