Due to “significant concerns for investor protection”, the financial supervisory authority BaFin reprimands a product of the investment platform Econos, behind which Alexander Samwer stands. Starting at €100, small investors could invest in the green World Fund. The financial regulator Bafin prohibits an investment product of the Munich-based fintech Econos.
In a notice issued Tuesday afternoon, the authority writes that it is banning the marketing, distribution and sale of “shares in tokenized debt securities of Econos 3 SVP.” Specifically, it says the financial instrument raises “significant investor protection concerns.” It is a way to invest in the green venture capitalist World Fund with low sums. In total, the offering was capped at 2.3 million euros.
The small investors do not invest directly in the funds but instead join a so-called SPV (Special Purpose Vehicle) via a bond, through which the investments in the funds are bundled. Econos founder Theresa Hauck stated that she wants to understand and resolve the “ambiguities” in “collaboration” with Bafin “as soon as possible.” In addition, the product criticized by BaFin is only one of the twelve investment platform offers.
Several providers are already venturing into the business model. The Munich investment platform Econos, financed by a fund of Alexander Samwer, offers small investors investments in Planet A and World Fund from 100 euros. At Inventure, there is access from 1,000 euros in Lemniscap, and Tokenstreet makes it possible from 100 euros to enter the N26 investor Earlybird. When asked on Tuesday, the supervisory authority wanted to refrain from commenting on the extent to which other offers are also affected.