Taaleritehdas Fund Management Ltd fined for violation of Mutual Funds Act limitations on investment of assets
The Financial Supervisory Authority (FIN-FSA) has ordered Taaleritehdas Fund Management Ltd to pay an administrative fine in the amount of EUR 7,000. The company was fined for occasional violations of the limitations on investment of assets laid down in the Mutual Funds Act, which occurred during the period 3 May 2011 to 28 August 2012.
The investments of Taaleri MENA Equity Fund, a mutual fund managed by Taaleritehdas Fund Management Ltd, have been in violation of the limitation prescribed by law according to which investments in single issuers' securities or money-market instruments that individually exceed 1/20 of the mutual fund's assets may altogether account for no more than 2/5 of the assets of the mutual fund.
The investments of Taaleri MENA Equity Fund were also in violation of the limitation prescribed by law according to which a maximum of 1/10 of the assets of a mutual fund may be invested in the securities or money-market instruments of the same issuer.
In investing the assets of Taaleri MENA Equity Fund, care had not been taken in applying the risk diversification principle in the manner prescribed by law, during the first six operating months of the fund.
The size and duration of the violations are specified in the decision (see the Appendix in pdf format).
Such administrative fine shall be ordered payable to the State. According to law, an administrative fine payable by a legal person shall amount to EUR 500-10,000.
This decision on the administrative fine is not yet legally binding. The company has the right to appeal the decision of 24 April 2013 to the Market Court within 30 days of the company's receipt of notice of said decision.
For further information please contact
- Jari Synkkänen, Legal Adviser, tel. +358 10 831 5200
- Decision (in Finnish, pdf)