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Investor Protection

Some of the most important legal mechanisms that have been applied by TWINO to protect the investors during the provision of TWINO investment services and ancillary services

Compensation of the Investments Made

Segregated Bank Account for Investors' Uninvested Funds

MiFID II Suitability and Appropriateness Assessment

Considering that TWINO is a licensed investment brokerage company, it is subject to both the requirements of the regulatory enactments of the Republic of Latvia and the regulations introduced in the European Union, which, among other things, determine the requirements for the protection of investors. First, when providing investment and ancillary services, TWINO as an investment brokerage company has an obligation to act as an honest and careful proprietor and to ensure the provided services with due professionalism and care for the interests of its clients.

Compensation of the Investments Made

In accordance with the Investor Protection Law (Article 3, Part 2, Point 4) of the Republic of Latvia in case the investment brokerage company cannot fulfill its obligations against the investor, the investor is entitled to compensation in the amount of 90% of the value of irretrievably lost financial instruments or losses caused by an unexecuted investment service, but not more than EUR 20,000.

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Segregated Bank Account for Investors' Uninvested Funds

According to the Financial Instrument Market Law (Article 129, Part 2), the investment brokerage company shall ensure that investor's funds are kept in an account or accounts that are separate and identified separately from the accounts used to hold the funds belonging to the investment brokerage firm itself. Therefore, to comply with the aforementioned requirements, TWINO keeps the investor's funds in a separate account.

MiFID II Suitability and Appropriateness Assessment

In accordance with the Financial Instrument Market Law (Article 126.²), in order to determine the suitability of investment service for the interests of an investor, an investment brokerage firm shall request information from the investor or potential investor regarding his or her experience and knowledge in respect of transactions to be entered into during the course of the provision of investment services, if the investment brokerage company provides investment service other than consultations regarding investments in financial instruments or individual management of financial instruments according to the authorisation of the investors. Therefore, TWINO requires all investors to undergo the MiFID II Suitability Test, which is the process of collecting information about the investor and the subsequent assessment by TWINO that a given financial instrument is suitable for the investor, based also on the TWINO’s solid understanding of the products that it can recommend or invest into on behalf of the investor. The MiFID II Suitability Test includes questions about the investor's knowledge and experience, the investor's financial situation and the investment objectives.

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