Marketplace October has just announced that due to regulatory requierements it won’t enable retail investors from Germany to invest into any new projects starting next week
In July 2019 we announced that we were going to launch October in Germany by the end of the year after the arrival of our local CEO, Thorsten Seeger. This is now coming fast with our first recruitments and operations in Munich.
For regulatory reasons we cannot open German projects to individuals. This is because the BaFin (German Federal Financial Supervisory Authority) requires the use of a fronting bank to allow retail investment in loans. We have studied this possibility, which has been chosen by other platforms, but the additional constraints and costs make this an unacceptable alternative under our business model.
German projects will only be funded by our institutional lenders (nor Spanish, Italian, French or Dutch retail lenders will be able to German projects). Additionally, lenders who are tax-resident in Germany will not be able to lend to any projects on the platform. Now that we operate locally, we have to apply local restrictions.
This means that you will not be able to lend on October as of next week. You will still be able to:
- Receive repayments on your current projects,
- Debit your October Account at any time.
We will provide you with your annual tax-summary (and this as long as you will be receiving repayments on your October Account).
We are really sorry to announce this news but have to comply with the German regulation. We have at heart to treat all our lenders, borrowers and partners equally wherever we operate. We will continue to work hard, with our peers in the European Crowdfunding Network, to allow German lenders on the platform in the future. How? We are confident that regulation, particularly at European level, will evolve to enable you to support the growth of European companies.
We are at your disposal should you have any questions.