Press release 30 September 2015 – 17/2015

Market Court issued its ruling on Navi Group Ltd’s appeal against the penalty payment imposed by the Financial Supervisory Authority

On 23 September 2015, the Market Court issued its ruling on an appeal filed by Navi Group Ltd in respect of the EUR 100,000 penalty payment imposed on the company by the Financial Supervisory Authority (FIN-FSA) on 4 November 2014. The present trade name of Navi Group Ltd is Privanet Capital Markets Ltd.

According to FIN-FSA’s decision, Navi Group Ltd had in its asset management business failed to comply with the provision of the Investment Services Act on the safekeeping and segregation of customer assets and had received repayable funds from the public, in breach of the Credit Institutions Act. In addition, the company had neglected to perform actions related to the identification and prevention of conflicts of interest and to ensure sound corporate governance.

Navi Group Ltd had appealed to the Market Court primarily to repeal the decision by the Board of FIN-FSA as being unlawful, and secondarily to rectify the FIN-FSA decision so that the penalty payment would not be imposed as  an unreasonable sanction.

The Market Court rejected Navi Group Ltd’s primary claim as to the unlawfulness of the decision by the Board of FIN-FSA (in Finnish). Based on the  grounds presented in its ruling, the Market Court repealed certain parts of FIN-FSA’s decision and reduced the amount of penalty payment imposed on Navi Group Ltd to EUR 80,000.

Privanet Capital Markets Ltd (previously Navi Group Ltd) and FIN-FSA have the right to appeal the Market Court decision to the Supreme Administrative Court within 30 days of the  receipt of notice of said decision.

For further information please contact

  • Olli Laurila, Senior Legal Advisor, tel +358 10 831 5337

See also