Alternative investment fund managers (AIFMs)
An alternative investment fund (AIF) is an entity or other type of collective investing where funds are raised from a number of investors with a view to investing them in accordance with a defined investment policy. Each AIF must have a manager (AIFM) who has an authorisation as referred to in the Finnish Act on Alternative Investment Fund Managers or who is registered as an AIFM.
Management of AIFs comprises both portfolio management and risk management. It can also include e.g. marketing of AIFs.
AIFMs must functionally and hierarchically separate the functions of risk management from other functions in a manner that is adequate in terms of the scope of the AIFM’s activity. AIFMs must ensure that the risks associated with an individual investment in an AIF and their overall effect on the AIF’s assets can be identified and measured on an ongoing basis.
An AIFM must also ensure that each AIF under its management uses a consistent procedure for the valuation of the AIF’s assets. The valuation must be performed impartially, with all due skill, care and diligence.
AIFMs must be authorised or registered
AIFMs must always have either an authorisation for the management of an AIF or they must be registered in a public register kept by the FIN-FSA. The FIN-FSA grants AIFM authorisations on application and processes registration applications.
As a rule, AIFs are only marketed to professional customers. If an AIF is marketed to non-professional customers, the AIFM must, as a rule, have an authorisation as referred to in the Act on Alternative Investment Fund Managers, or a similar authorisation granted in another EEA state. On special grounds and on application, the FIN-FSA may grant a registered AIFM the right to market an AIF that it manages to non-professional customers in Finland.
For more information on applications for authorisation and registration, branches and cross-border provision of services, see section Authorisations, registrations and notifications.
FIN-FSA supervises AIFMs
The FIN-FSA supervises the activities of AIFMs. Both authorised and registered AIFMs are obliged to regularly report to the FIN-FSA relevant information on the AIFs they manage.
AIFMs are obliged to submit to the FIN-FSA information e.g. on markets in which they are members or where they actively trade, on financial instruments, principal exposures and all other information and documents necessary for supervision.
For more information on reporting obligations applicable to AIFMs, see section reporting.
If the AIFM is also authorised to provide investment services, see section Investment service providers.
Letter of commencement of marketing – establishing a new fund (chapter 12 of AIFM Act)
AIFMs authorised in Finland may market AIFs in Finland in accordance with the notification procedure provided for in chapter 12 of the AIFM Act. Marketing to non-professional investors is provided for in chapter 13 of the AIFM Act. The notification should be made either in Finnish or in Swedish. For more information, see Finnish or Swedish pages on Authorisations, registrations and notifications in the financial markets.
Contact information:
AIFM related interpretation inquiries
- Email address:
AIFMquestions(at)fiva.fi
Email subject:
"AIFML xx § / Subject - Company"
AIFMD-reporting related questions:
AIFMDReportingHelpdesk(at)fiva.fi