European lending market Mintos has launched a brand new rewards programme that pays present buyers €50 (£44) for introducing associates to the platform who make investments €1,000 or extra.
The brand new investor will get a €50 bonus in addition to a one per cent bonus of the typical funding within the first 90 days. The promotion runs till 31 Might.
Whereas EU-based peer-to-peer lending platforms are allowed to supply these kinds of investor incentives, they’re now banned within the UK below the brand new, stricter guidelines round monetary promotions.
Final August, the Monetary Conduct Authority (FCA) banned “excessive threat” funding companies resembling P2P lending platforms from providing investor incentives resembling ‘refer a good friend’ bonuses.
Learn extra: Mintos rates of interest dip in February as every day common investments rise
As a part of its client investments technique, the FCA needs to cut back the variety of folks investing in high-risk merchandise that it says don’t replicate their threat urge for food. That is as a result of regulator’s considerations that some folks investing in high-risk merchandise don’t correctly perceive the dangers concerned.
Learn extra: FCA targets “main shift in monetary providers” with new Shopper Obligation