FIN-FSA assessed the propriety of banks' conduct regarding Finavia derivatives contracts
Finavia requested that the FIN-FSA assess the propriety and legality of the conduct of banks whose services the company used in concluding derivatives contracts between banks and Finavia in 2009–2011. The FIN-FSA assessed the matter and sent its response to Finavia and to the concerned banks.
Based on reports received from the banks, the FIN-FSA assessed the propriety of the banks’ conduct and their compliance with the rules of conduct. Furthermore, the FIN-FSA assessed whether there were grounds to suspect that the banks had neglected the requirement of the then-valid Securities Markets Act that prohibit to provide incorrect or misleading information in the marketing of securities, or conducting themselves in such manner as is contrary to proper practice or otherwise inappropriate. In addition, the FIN-FSA assessed whether the banks had complied with their obligation, under the Securities Markets Act, to observe good practice in securities trading and the offering of investment services.
The banks were under the obligation to provide Finavia with relevant information to support its decision making, for example on the nature of the contracts and related risks. However, in offering its service to Finavia, which was appropriately categorised as a professional customer, the banks were not under the obligation to review the appropriateness or suitability of the contracts for Finavia.
Based on the reports received, no such information emerged which would give grounds to suspect that Finavia had been provided with incorrect or misleading information in the context of offering the derivatives contracts, or that any conduct contrary to proper practice or otherwise inappropriate had occurred.
Since the matter concerns an individual case involving a service provider and its customer, the FIN-FSA will not comment further on the matter.