We decided that this is a good excuse to talk about how auditing and control by regulators in European countries is organized. About this is our new article in the cycle “what is the bank worth building for us”.
Briefly recall the mechanics of the process: at the moment, “Polybius” is work in progress. This is due to the peculiarities of European legislation, in which several types of financial institutions are prescribed, the registration of each of which requires an increasingly thick bundle of money taken out of the investor’s wallet. Therefore, what kind of license – from payment service to a full-fledged bank – we have at the start, will be known only after the ICO.
What is already known: we will work in European jurisdiction. The short list of countries considered for obtaining a license has now been reduced to Switzerland, Luxembourg (for tax legislation) and Finland and Lithuania (for loyalty to crypto and block projects). The final decision has yet to be made, but while the country of watches and cheese with holes looks more attractive: in addition to legal stability and the ancient banking tradition, Switzerland is one of the first countries that at the level of the regulator approved the use of a detachment in a financial institution The auditor confirms its operational safety. This is exactly what we are going to do in Polybius: transactions inside the bank in a closed locker, and security and workflow on Emerkoyne.
What does this give the investor (the holder of the token) “Polybius”?
First of all, Europe is the severity of the regulating bodies. Any financial organization undergoes an annual audit, which excludes the possibility of a muhhole with reporting indicators.
According to the last directive, in the EU the auditor rotation is carried out at least once every 10 years – this became mandatory after the scandal with the bankruptcy of the US energy giant Enron in 2001, the irremovable auditor of which for 20 years “zamylival” reporting of the company. Nevertheless, we plan to do rotation every 3-5 years. One of the offices of the Big Four, most likely Ernst & Young, with whom we are already negotiating, will be audited by Polybius
The audit involves controlling the balance, expenses and preparation of reporting for the regulator.
The auditor’s accountability is checked by the state regulator. It is checked strictly: even if the Polybius investor does not read the results of the annual audit, the regulator will accurately read it.
Officials monitor the ratio of shareholder and borrowed capital, conduct stress tests when the company is invited to outline its action plan in case A sudden situation like “20% of your default on loans will be in your portfolio” (ie 20% of loans issued were irretrievable)?
In addition, the regulator also monitors the creditor of the bank: it is forbidden to credit its own Company. Credit portfolios should be diversified and not be associated with bank shareholders.
In addition, European financial officials have the right of morning raids: i.e. Checks without notice in advance.
Guarantees to depositors
It’s still easier here. In Europe, there is a system of deposit insurance that is familiar to Russians, except that the amount of insurance is much higher: it insures up to 100 thousand euros for all investors, including non-residents.
And from the point of view of investors holding “Polybius” tokens, Europe (EU + Switzerland in this case) is a predictable legal field. Whichever type of license we obtain by ICO results, we will remain a real company that falls under the local legal field with the protection of the rights of investors and investors by the laws and courts of the country of registration.
How will dividends be paid
According to the Polybius Charter, following the results of each financial year, 20% of the profit will be transferred to the Eterum wallet, from which it will be distributed among the holders of Polybius tokens holders in accordance with the terms of the smart contract.
How to participate in the ICO
The Polybius tokens will be issued at a price of $ 10 apiece for the ICO period and guarantee 20% of the annual profit of the bank confirmed by the European regulators.
- On the first day of the ICO, the tokens will be sold with a 25% bonus from the top, during the next four Weeks bonuses will gradually decrease.
- If you are afraid to miss the first day of ICO and wish to reserve tokens with the maximum bonus, contact us by mail email@example.com
ICO Polybius will start this spring. The exact date will be announced soon. In order not to miss this event, and in time to get tokens in the first weeks, while there are bonuses, subscribe to the newsletter with a notice on the site polybius.io