Exclusive: ayondo's BaFin License Took About One Year to Obtain

In 2017, with the level of maturity of the foreign exchange and CFDs trading industry, news of a new regulatory license jurisdiction license is relatively rare. Even when we do hear of a case of a new regulator welcoming a retail trading industry firm it is normally far outside of Europe, in some far offshore jurisdiction.

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Having said all that, last week, ayondo made headlines with the acquisition of a brand new license from a brand new jurisdiction. The German regulator, one of the heavyweights of Europe, has granted the company a portfolio management license which enables the firm to expand its social trading offering. The company plans to use the licensed subsidiary to cater to client needs across the European Union.

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Finance Magnates reached out to the ayonda’s CEO Robert Lempka with some questions on the company’s important milestone.

When did you decide to obtain a BaFin license? What were the key drivers for the decision?

We are constantly working to refine and improve our innovative social trading offering. We put customer experience and protection at the centre of our business activities, and the BaFin licence is a benefit to both our retail and B2B clients. Furthermore, transparency and a clear regulatory environment is a necessity as we focus on our international expansion. The licence represents a milestone within the European FinTech market and paves the way for future market developments.

How long did it take you to obtain the licence from the initial time of application?

It took approximately a year of working in collaboration with and according to the BaFin guidelines, and adopting traditional portfolio management to the needs of today and specifically, to the online world of Social Trading.

How complex would you rate the procedure of obtaining a license in Germany and what are the costs associated with it?

Alongside the UK FCA, the Monetary Authority of Singapore (MAS), the German regulator BaFin is one of the most respected regulatory authorities globally. It is a reliable partner in the area of policy formation, supporting the ongoing development of Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term. For ayondo, obtaining a license under recognized European supervisory standards was always a priority. We are certain that the benefits to us as a business and to our customers outweighs any challenges and costs.

Does the license include dealing as a principal or only as a matched principal?

The portfolio management license covers the provision of social trading services via our WeTrade platform. The mechanism of trade Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term remains unchanged with execution occurring via ayondo markets Limited (UK), our FCA regulated entity.

Do you plan for a special marketing campaign to clients in Germany and how do you plan to market the license?

Following the announcement of the introduction of the license, we have already received very positive feedback from clients and industry partners. We will continue to use confirmation of the license within our communication, whilst our first priority remains our existing client base.