Investment service providers
Investment services are provided in Finland by many types of entities − from large banks to smaller investment firms. The nature of the service determines whether the provider needs an authorisation and whether its operations are supervised.
In legislation, investment services refer to, among others, investment advice, portfolio management; and the reception, transmission and execution of orders relating to financial instruments.
Provision of investment service subject to authorisation
Investment services can be provided only by banks authorised as credit institutions, investment firms authorised to provide investment services, and fund management companies authorised to provide portfolio management and investment advice. Investment services may also be provided eg by comparable service providers in the EEA that have a branch office in Finland or have notified FIN-FSA of their intention to provide services in Finland.
FIN-FSA supervises investment service providers
FIN-FSA supervises the operations of banks, investment firms and fund management companies providing investment services, as well as their agents. For more information on FIN-FSA supervision, go to the 'Read more' column on the right hand side of this page.
Investor Compensation Fund protects against insolvency of service providers
Finnish investment firms and credit institutions providing investment services must belong to the Investment Compensation Fund, if they hold customer funds and provide services relating to reception, transmission and execution of orders, portfolio management and placing of financial instruments without a firm commitment basis.
The Investor Compensation Fund will reimburse funds to non-professional clients in the event that an investment firm, credit institution or fund management companyt fails to meet its obligations due eg to bankruptcy. The maximum compensation is EUR 20,000.
14 November 2011