Debitum obtains an investment firm license from FCMC

We are proud to release asset backed securities and enter the regulated financial market. This allows Debitum to continue the journey to be a highly professional and well recognized investment platform for investors.

On 21.09.2021, SIA DN Operator legal entity of Debitum operations obtained an investment brokerage license from the FCMC (Latvia’s Financial and Capital Market Commission), which allows us to be a regulated platform in Latvia. Undoubtedly this is a gateway to be a transparent and modern platform for European Investors.

As for this transition, Debitum will have a few changes in its internal processes. However, licensing is our achievement and added value to Debitum’s core – a safe and fast Platform. 

Now that the licensing process is finished, we are excited to announce more detailed information about Investor’s gains and upcoming changes in the forthcoming three months.

Transition period

As part of our continuous effort to improve the efficiency of our operations, we are entering a transition period of three months where we will gradually move to a new model aligned with regulation standards. 

We are introducing our new financial instrument for Investors – asset backed securities or, in short, ABSs. 

ABS is a financial instrument backed by a pool of loans. So, instead of investing in one asset, the Investor will be able to choose from a variety of ABSs containing a package of business loans from our loan originators. 

Do not worry, as our current investment offers are still active until the end of the transition period. After the transition, only ABS will remain. We will ensure this shift is as transparent and straightforward as possible by informing about every necessary topic.  

What will Investors gain from this?

• An exclusive ABS offer that is featured only on the Debitum platform
• By investing in ABS Investor will apply to Investor’s protection system
• More safety due to government monitoring and auditing of all platform operations
• To be a part of the Investor community that stands by regulations and recognition in Latvia and the EU

Investor’s protection system for investment in ABS
Investors are protected and are entitled to receive compensation for irreversibly lost financial instruments and damages caused by a non-executed investment service according to the Investor Protection Law of the Republic of Latvia. However, compensation does not apply to situations where the investment services are not executed during the company’s regular operation. A 90% compensation will be paid to the Investor from lost investment value, but it can not exceed EUR 20,000. (EU Directive 97/9/EC)

What should Investors know and do? 

Complete Suitability and Appropriateness Assessment
All new and existing investors must complete Suitability and Appropriateness Assessment as required by the MiFID II European Union regulation. 

Currently, already a majority of Debitum existing investors have passed this test. However, if you have not, do not worry – you should be able to! 

Investor categorization
To ensure that investors are eligible for the Investor’s regulatory protection mechanism, Debitum will categorize all investors as Retail Clients as stipulated in MiFID II regulation.

As we are now a licensed investment firm, there is an opportunity to classify as a Professional Client or Eligible Counterparty allowing access to certain services not available to Retail Clients.

Know Your Customer questionnaire
The investor will need to update their information by filling KYC questionnaire and by providing any documents and information required by Debitum. This is a new questionnaire that every current and new Investor must complete.

Terms and Conditions
All new Terms and Conditions have been updated, and already every newly registered and existing Investor can review and accept them in their profiles. Existing Investors have 30 days period to review and accept it. After this period, the new Investment Services Agreement comes into force.

To consent to the new Terms and Condition login to your profile