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ayondo first to offer services under a BaFin portfolio management licence

First Published 30th August 2017

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

Robert Lempka, ayondo

Robert Lempka, ayondo

Frankfurt - 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 said: "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."

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.

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.