Finax Has Increased Its Capital – Stronger and Safer Once Again
In addition to improving the quality of services and expanding its offering, Finax keeps in mind the safety of client assets and the stability of its business. We are constantly progressing in this area as well. Most recently, we have increased our capital. Learn what this move means for our clients and why we took it.
Security and trustworthiness are two key parameters of a successful financial institution. Each of us prefers safety in the field of finance, which is why we store and have our money managed by reputable companies.
Trust is built mainly through history, experience, and transparent communication. Security is defined by the character of the firm's management and its actions, compliance with legislative and regulatory requirements, prudent management, choice of partners, and sufficient capitalization.
At Finax, we seek to be a proper financial institution. We can’t speed up time, still having to wait for a long history. We are a relatively young company that will soon celebrate 5 years of existence.
However, the other factors mentioned for building trust and protecting client assets are fully in our hands. In addition to the development and improvement of our services, technical innovations, broadening our offer, expansion, and financial education, we also devote considerable effort to improving safety and stability. And we do this in all areas of our business.
Another milestone in this direction is the increase in the share capital of Finax, o.c.p., a.s. to 750 thousand euros dating from 30 June 2022.
This step was planned, as it reflects the strong growth of our activities. We communicated it a year ago, after receiving a second round of funding from the investment holding of Ivan Chrenko’s foundation.
On the one hand, higher share capital is required by regulation, given the growing volume of assets under management, rising operating costs, and the planned expansion of the investment services provided.
On the other hand, it is also a signal to our clients that we are a stronger and more stable institution in terms of financial security.
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The increase in share capital has not led to a change in the ownership structure. It is a transfer of resources from capital funds, created in the previous two funding rounds, to the share capital. The amount of Finax's equity remains unchanged.
However, share capital is the strongest item of equity, as securities broker-dealers can only reduce it with the approval of the regulator, the National Bank of Slovakia.
Finax handles its business efficiently and prudently, which is not always an easy task for a rapidly growing company that does not use borrowed funds (debt) for expansion. We are financing our growth only from our own resources, which at the end of 2021 amounted to a respectable 2.23 million euros.
Our capital adequacy ratio meets the regulatory requirements, which were even further tightened last autumn, by a comfortable margin.
We believe that this move by Finax will also enhance our credibility. We are working hard on further measures and changes that would enhance the safety of client assets, credibility, and stability of Finax. We are doing our best to present them to you soon.
One of the activities beyond the scope of legal obligations is, for example, the regular review of assets under management by our auditor BDO.
We thank all intelligent investors for their trust and look forward to our future together.