- FinTech industry milestone: from 1st September ayondo’s Social Trading services will be offered under a portfolio management licence issued by BaFin
- Clients will be able to tailor Social Trading with their overall investment strategy
- A performance-based fee structure for Top Traders will also be introduced
Financial Technology group ayondo is the first company to offer Social Trading services under a portfolio management licence issued by the German regulator, BaFin. The development means ayondo clients can match Social Trading with their personal investment objectives, and take into account their individual risk preferences to align more with their overall investment strategy. The portfolio management licence will come into effect from 1st September 2017.
Robert Lempka, CEO ayondo Group states: “We put customer experience at the heart of all our business activities. In collaboration with, and in consideration of the BaFin guidelines, we have taken traditional portfolio management and adapted it to the needs of today. The development is hugely important for ayondo and marks a major milestone for the FinTech industry.”
Social Trading – even better tailored for each Follower
With the activation of the portfolio management licence, the security of customers’ assets will be further enhanced. A month ago ayondo doubled its additional customer insurance protection to one million. The portfolio management licence means Followers can match a Top Trader’s risk parameters to their own risk profile. Once they have decided what risk they are comfortable with, they are notified if one of their chosen Top Traders deviates from this.
Introduction of performance-based remuneration
In addition to the current Top Trader remuneration model, ayondo is also offering a new performance-based remuneration. Similar to the model used in asset management, this will remunerate Top Traders based on each Follower’s performance as well as a share of a fixed management fee. The aim of this new model is to broaden the range of Top Traders trading buy-and-hold strategies for Followers.
Robert Lempka (CEO) adds: “Here again, we have taken the traditional methods of portfolio management and adopted them to today’s customer needs, by introducing a new system whereby the Top Traders’ performance-based fee only applies if the individual client makes gains.”
The foundation of the new Social Trading lies in the ayondo portfolio management GmbH which will become the customers’ contracting partner, unifying auto-execution, the core element of the Social Trading service, with that of the portfolio management licence.
Spread Betting and CFDs are high risk investments. Your capital is at risk. Spread Betting and CFDs are not suitable for all investors and you should ensure that you understand the risks involved and, if necessary, obtain independent financial advice to ensure that these products fit your investment objectives.
Trade execution services are provided exclusively by ayondo markets Limited.
ayondo markets Limited is a company registered in England and Wales under register number 03148972. ayondo markets Limited is authorised and regulated by the Financial Conduct Authority, FCA Register number 184333.
Social Trading services are provided exclusively by ayondo portfolio management GmbH.
ayondo Portfolio Management GmbH is a company registered in the commercial register of the local court (Amtsgericht) Frankfurt a.M. under the registration number HRB 84169. ayondo portfolio management GmbH is authorised and regulated by the Bundesanstalt für Finanzdienstleistungsaufsicht, BaFin Register number 145765.
ayondo is a global Financial Technology group with subsidiaries authorised and regulated in the UK (FCA) and Germany (BaFin), offering innovative trading and investment solutions for retail and institutional customers. ayondo specialises in Social Trading with a sophisticated online trading platform and a leading Social Trading platform. Social Trading allows retail investors to automatically copy the trades of Top Traders. In recent years ayondo has won several accolades including Europe’s leading Financial Technology providers (“FinTech 50”). Other honours include the International Financial Award Best Social Trading Platform and Broker of the Year.
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