Penalty payment of EUR 125,000 for LocalTapiola Asset Management Ltd due to omissions concerning arrangements for transaction reportingThe Financial Supervisory Authority (FIN-FSA) has imposed a penalty payment of EUR 125,000 on LocalTapiola Asset Management Ltd. In the period between January 2018 and July 2020, the company failed to comply with the provisions concerning the arrangements for transaction reporting.
Transaction reporting plays a key role in market abuse surveillance conducted by the FIN-FSA and therefore in ensuring confidence in the securities markets. This is why special attention should be paid on the quality and scope of transaction reporting, and investment service providers should have methods and arrangements in place to ensure that the information reported by them is complete and accurate.
The methods and arrangements used by LocalTapiola Asset Management Ltd have not been sufficient for detecting errors and omissions in reporting and for identifying unreported transactions. In addition, the company has not reconciled its trading records against the information reported to ensure that its transaction reports are complete and accurate.
The FIN-FSA has imposed a penalty payment on these omissions. The amount of the penalty payment is based on a comprehensive assessment that takes into account, in particular, the nature, extent and long duration of the omission. The penalty payment is payable to the State.
The omissions came to light during an inspection by the FIN-FSA, the aim of which was to assess the company’s arrangements for transaction reporting.
The FIN-FSA’s decision is not legally binding, as the company has the right to appeal against the decision of 6 June 2022 to the Helsinki Administrative Court within 30 days of receipt of notice of the decision.
FIN-FSA decision (pdf, in Finnish)