How to open your bank in Europe: reporting and auditing
One of the most common questions about the Polybius ICO that we get: how can investors who buy tokens be sure that exactly 20% of the bank’s profits will go to dividend payments every year and not less?
We decided that this is a good reason to talk about how audit and control by regulators in European countries is arranged. About this is our new article in the cycle “that we should build a bank”.
Let us briefly recall the mechanics of the process: at the moment, “Polybius” is work in progress. It is caused by the peculiarities of the European legislation, in which several types of financial institutions are registered, the registration of each of which requires an ever thicker wad of money taken out of the investor’s wallet. Therefore, at what type of license - from the payment service to the full-fledged bank - we have at the start, it will be known only at the end of the ICO.
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What is known now: we will work in European jurisdiction. The shortlist 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 blockchain projects). The final decision remains to be made, but for now the country of hours and cheese with holes looks most attractive to us: in addition to legal stability and the ancient banking tradition, Switzerland is one of the first countries that, at the regulator level, approved the use of the blockchain at a financial institution , provided that the auditor confirms it operational safety. This is exactly what we are going to do in Polybius: transactions inside the bank on a closed blockchain, and security and document circulation on Emercoin .
First of all, the EU and Switzerland are the strictness of the regulatory authorities. Any financial institution is subject to an annual audit, which excludes the possibility of a fly-over with reporting indicators.
According to the current EU rules, the auditor is rotated at least once every 10 years - this became mandatory after the scandal with the bankruptcy of the American energy giant Enron in 2001, the non-replaceable auditor of which “washed out” the company's reports for 20 years. Nevertheless, we plan to rotate once every 3-5 years. One of the offices of the Big Four, most likely Ernst & Young, with whom we are already negotiating, will deal with the Polybius audit.
Audit includes control of balance, expenses and preparation of reports for the regulator.
Already the reporting of the auditor 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 read it for sure.
Officials monitor the ratio of equity and debt capital, conduct stress tests when companies are asked to outline their action plan in case of a sudden situation, like “your portfolio will have a 20% default on loans” (i.e. 20% of loans issued were irrevocable)?
In addition, the regulator monitors those who lend to the bank: it is forbidden to lend their own companies. Loan portfolios should be diversified and not be linked to bank shareholders.
In addition, European financial officials have the right to morning raids: i.e. checks without notice in advance.
It's still easier here. In Europe, the deposit insurance system, which is familiar to Russians, is operating, except that the insurance amount is much higher: up to 100,000 euros are insured for all depositors, including non-residents.
Both from the point of view of investors-holders of “Polybius” tokens, and from the point of view of investors, the EU and Switzerland are a predictable legal field. Whatever type of ICO license we get, we will remain a real company that falls under the local legal framework protecting the rights of depositors and investors by the laws and courts of the country of registration.
According to the Polybius Charter, at the end of each fiscal year, 20% of the profits will be transferred to the Etereum wallet, from which it will be distributed to the wallets of the Polybius tokens in accordance with the terms of the smart contract.
Polybius tokens will be issued at a price of $ 10 per share at the ICO time and guarantee 20% of the annual, confirmed by European regulators bank profits.
ICO "Polybius" starts this spring. The exact date will be announced soon. In order not to miss this event, and to have time to purchase tokens in the first weeks, while there will be bonuses, subscribe to the newsletter with a notification on the website polybius.io
We decided that this is a good reason to talk about how audit and control by regulators in European countries is arranged. About this is our new article in the cycle “that we should build a bank”.
Let us briefly recall the mechanics of the process: at the moment, “Polybius” is work in progress. It is caused by the peculiarities of the European legislation, in which several types of financial institutions are registered, the registration of each of which requires an ever thicker wad of money taken out of the investor’s wallet. Therefore, at what type of license - from the payment service to the full-fledged bank - we have at the start, it will be known only at the end of the ICO.
')
What is known now: we will work in European jurisdiction. The shortlist 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 blockchain projects). The final decision remains to be made, but for now the country of hours and cheese with holes looks most attractive to us: in addition to legal stability and the ancient banking tradition, Switzerland is one of the first countries that, at the regulator level, approved the use of the blockchain at a financial institution , provided that the auditor confirms it operational safety. This is exactly what we are going to do in Polybius: transactions inside the bank on a closed blockchain, and security and document circulation on Emercoin .
What does this give to the investor (holder of the token) "Polybius"?
First of all, the EU and Switzerland are the strictness of the regulatory authorities. Any financial institution is subject to an annual audit, which excludes the possibility of a fly-over with reporting indicators.
According to the current EU rules, the auditor is rotated at least once every 10 years - this became mandatory after the scandal with the bankruptcy of the American energy giant Enron in 2001, the non-replaceable auditor of which “washed out” the company's reports for 20 years. Nevertheless, we plan to rotate once every 3-5 years. One of the offices of the Big Four, most likely Ernst & Young, with whom we are already negotiating, will deal with the Polybius audit.
Audit includes control of balance, expenses and preparation of reports for the regulator.
Already the reporting of the auditor 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 read it for sure.
Officials monitor the ratio of equity and debt capital, conduct stress tests when companies are asked to outline their action plan in case of a sudden situation, like “your portfolio will have a 20% default on loans” (i.e. 20% of loans issued were irrevocable)?
In addition, the regulator monitors those who lend to the bank: it is forbidden to lend their own companies. Loan portfolios should be diversified and not be linked to bank shareholders.
In addition, European financial officials have the right to morning raids: i.e. checks without notice in advance.
Guarantees to depositors
It's still easier here. In Europe, the deposit insurance system, which is familiar to Russians, is operating, except that the insurance amount is much higher: up to 100,000 euros are insured for all depositors, including non-residents.
Both from the point of view of investors-holders of “Polybius” tokens, and from the point of view of investors, the EU and Switzerland are a predictable legal field. Whatever type of ICO license we get, we will remain a real company that falls under the local legal framework protecting the rights of depositors and investors by the laws and courts of the country of registration.
How will dividends be paid
According to the Polybius Charter, at the end of each fiscal year, 20% of the profits will be transferred to the Etereum wallet, from which it will be distributed to the wallets of the Polybius tokens in accordance with the terms of the smart contract.
How to participate in ICO
Polybius tokens will be issued at a price of $ 10 per share at the ICO time and guarantee 20% of the annual, confirmed by European regulators bank profits.
- On the first day of ICO, tokens will be sold with a 25% bonus on top, over 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, please contact us by mail info@polybius.io
ICO "Polybius" starts this spring. The exact date will be announced soon. In order not to miss this event, and to have time to purchase tokens in the first weeks, while there will be bonuses, subscribe to the newsletter with a notification on the website polybius.io
Source: https://habr.com/ru/post/403087/
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