We’re excited to announce that Afranga starts operations under a European crowdfunding service provider license this March! Investors who have accounts registered on stikcredit.eu will need to take certain actions in order to keep investing on the new platform.
Investor benefits:
- Your funds will be kept in a separate payment account under your name in a licensed EMI.
- The new platform offers enhanced two factor authentication and other security improvements.
- Additional platform features and improved overall user experience.
- Enhanced risk disclosures.
- Improved and quicker customer service through live chat, email or via phone
- Personal account manager: Investors with significant account sizes will enjoy access to a personal account manager to answer their questions and needs.
Registering a new investor account
Investors have to register a new investor account on afranga.com and undergo an identity verification process. The new regulatory setup requires us to collect additional information from investors related to AML checks and applicable laws. The new process is fully automated for individual investors and you should be able to go through the entire process within a couple of minutes.
The identity verification process is fully automated, and you should receive an email confirming your verified identity within a few minutes after completing the registration. We’ve made sure to create a quick and straightforward process. You can register a new account here.
Key takeaways:
- Existing stikcredit.eu investors need to register a new account on afranga.com
- Each investor needs to undergo an enhanced identity verification check and an assessment and appropriateness test
- Afranga.com is now operating under a separate legal entity
- Afranga is not allowed to carry over existing registrations or investor account balances from stikcredit.eu to afranga.com
Existing funds invested on stikcredit.eu
Your existing account balance will not be transferred to afranga.com. We are unable to transfer your account balances between stikcredit.eu and afranga.com due to the fact that Afranga will be operating under a separate legal entity established especially for the purpose of operating a licensed crowdfunding platform.
What do you have to do?
Your existing loans on stikcredit.eu will be gradually repaid in accordance to their repayment schedules. As new repayments come into your stikcredit.eu account, your uninvested funds will increase. You should request the withdrawal of those funds to your bank account which you can use to deposit to your afranga.com account.
Why is this necessary?
There are several factors at play which prevent us from transferring your funds automatically:
- Afranga is now a separate legal entity and there is no legal basis to have access to investor funds available on stikcredit.eu.
- The regulatory setup prohibits us from transferring existing investor balances between the two platforms.
- Upon registering on afranga.com a new payment account is created for each investor with our payment provider – Lemonway. Your funds will be stored in a separate account under your name.
What will happen to my existing investments on stikcredit.eu?
For a certain period of time stikcredit.eu will continue operating as usual. You will have full access to your investor account. You will no longer be able to transfer funds, but you will be able to withdraw any uninvested funds.
Your existing investments into loan assignments will be gradually repaid over time as the underlying loans are being repaid in accordance with their repayment schedule.
Over time your investment portfolio on stikcredit.eu will be fully repaid and you will no longer have any active investments on the platform.
Will you continue publishing new loans on stikcredit.eu?
We will not continue publishing any new loans on stikcredit.eu after the transition period has been completed and our investors have registered a new account on afranga.com.
After all of our existing investors’ accounts are fully repaid, stikcredit.eu will be closed down.
Investor types on Afranga
You will be able to register as an investor both as an individual or a company. The process is quick and straightforward and fully automated for individual investors. Company accounts require a few additional checks and are verified manually.
Will there be withholding tax on afranga.com?
All investments into loans will be subject to withholding tax at the source. The withholding tax rate will vary depending on the loan originator’s jurisdiction and local tax laws. More information on withholding tax on Afranga can be found in this dedicated article.
Additional layers of security
We’ve designed Afranga 2.0 with security in mind. Our investors will benefit from an increased level of account security ensuring their investments remain safe.
Two factor authentication
The two factor authentication method is upgraded. The option to receive a 2FA code via email will become obsolete. Instead we introduce improved methods of 2FA – login using an authenticator or via a temporary SMS code.
Proof of bank account ownership
Prior to requesting their first withdrawal investors will be required to submit a document providing proof of ownership of the bank account. Only approved bank accounts will be added as a withdrawal option to your investor account.
Temporary account suspension
If our investors notice a suspicious activity with their account, they can block access to it quickly and easily to prevent any unauthorized access. Account access can be regained after verifying your identity with our customer support team.
Further information for investors
For those of you who need additional information on how Afranga will operate under the regulatory setup, we’ve provided a series of articles which provide more details on relevant topics on our blog.