Investment Fund Market Guide – Finland

15.05.2020

Key features (Register market)


Yes/No

Remarks

Settlement free of payment

Yes


Settlement against payment

Yes

Refer to CBL’s Eligible currencies and the fund currency specified in the fund prospectus.

Disclosure Requirements

Yes

Refer to Disclosure Requirements – Investment Funds – Finland.

Restrictions on customer

Yes

Customers must ensure that Finnish ultimate beneficial owners do not hold Finnish open-ended funds through CBL. The restriction applies to Finnish nationals, entities and foundations.

Refer to Holding Restrictions – Investment Funds – Finland.

Restrictions on settlement

Yes

 Internal transfers between two accounts within CBL are not allowed. Customers must instruct CBL to make the transfer through the fund manager/transfer agent.

Refer to Holding Restrictions – Investment Funds – Finland.

Restrictions on non-financial rights
(for example, no proxy voting)

Yes

Refer to Holding Restrictions – Investment Funds – Finland.



Remarks

Market type / link type (Settlement link)

Register market

Eligible fund types in CBL

Register market: Open-ended mutual funds and closed-ended funds, inclusive of Alternative Investment Funds.

CSD link: n/a

Eligible fund types in CBL

Register market

Investment funds in Finland can be broadly categorised as open-ended mutual funds and closed-ended funds, inclusive of Alternative Investment Funds (AIF).

Open-ended funds are governed under the Finnish Act on Mutual Funds, also known as the Act on Common Funds, and are pools of assets and thereto related obligations. Finnish mutual funds are not independent legal entities and cannot act independently, therefore they are represented by fund managers. Such mutual funds can be further classified into two categories, namely:

  1. Ordinary mutual funds, qualifying as UCITS (sijoitusrahasto);
  2. Special mutual funds, non-UCITS funds (erikoissijoitusrahasto).

Closed-ended funds are generally established as limited partnership companies that fall within the definition of AIFs under the Finnish AIFM Act, except where the AIF is a non-UCITS mutual fund established under the Act on Mutual Funds. Only limited partnership companies or limited liability companies with partnership agreements or corporate documents that permit or do not restrict nominee holdings can be made eligible in CBL.

Proxy voting procedures

According to Section 57 e of the Finnish Act on Mutual Funds, fund units held by a nominee have no right to participate in the General Meeting. Accordingly, CBL does not provide any proxy voting services for Finnish mutual funds.