Market Specifications – Investment Funds – Finland

11.07.2019

Nominee agreements

A signed agreement between CBL (the nominee) and the fund management company (the fund manager) is required prior to the subscription of the securities of the investment funds managed by the fund manager concerned. A list of the Finnish fund managers where CBL has existing nominee agreements can be found in the attachment section below, which will be visible if logged in as a Premium User.

Customers are advised that request for investment funds managed by fund managers not found in the list would incur a lead time for establishing the nominee agreements. Depending on various factors, it may take two to six months to establish a new nominee agreement with a fund manager. Customers should note that some Finnish domiciled funds cannot be held by CBL, depending on the fund manager’s discretion in the nominee agreement.

Disclosure of CBL customer information

Pursuant to Section 57 c of the Finnish Act on Mutual Funds and the nominee agreements that CBL had entered into with the respective fund managers, customers are advised that fund managers are entitled to CBL customer information regardless of the naming convention of the accounts opened in the fund managers/transfer agents’ books. Please refer to Disclosure Requirements – Investment Funds – Finland.

Non-solicitation clause

No offer, marketing or promotion can be made by the customers to investors in countries where the offering of the Finnish funds requires its prior registration or marketing notification. Exceptions to this must be handled with the utmost of care, and in case of doubt, the customer shall consult with CBL in beforehand any such activities are taken.

These exceptions include:

  • Customers who approach CBL on an unsolicited basis to invest in Finnish funds.
  • Where the Finnish fund is an investment option as part of a life insurance policy, and the policy and not the Finnish fund has to be authorised for sale in a country.

However, any exception identified by CBL and fund manager may only be used to the extent that it complies with local legislation allowing distribution of the Finnish funds in that territory.

Customers are not allowed to carry out the distribution or marketing of the Finnish funds to retail clients if the laws and regulations applicable require specific retail distribution model and further local contracts to be put in place. In this case, additional legal arrangements need to be set up according to local laws and the clauses of the nominee agreement between CBL and the fund manager. CBL’s customers and the fund manager shall discuss how best to achieve distribution in that country.

Customers represent that they have and undertake that with the subscription of the Finnish funds, customers

  • Have complete knowledge of the laws and regulations governing the marketing, promotion and sale of undertakings for collective investment in transferable securities in the respective country or domicile of any of the investors who invest in the Finnish funds and each of the countries where the Finnish funds are distributed and
  • Undertake not to conduct any activity or action that may constitute distribution, marketing, promotion, offering or sale of the Finnish funds or to otherwise contravene any relevant law or regulation.

Disclaimer

The information contained in the Market Specifications is based on the market practice that CBL was made aware of from different sources and the executed nominee agreements. This is not intended to be a comprehensive guide of all local market practices, and CBL disclaims any responsibility as to the accuracy and completeness of the information. In the case of discrepancy between the information provided by CBL and the local laws and regulations, the latter shall prevail. The Market Specifications do not constitute legal advice and customers should seek advice from independent professional counsel.

Customers are responsible for ensuring compliance with the Market Specifications, where applicable, and agree to indemnify and hold harmless, CBL, for any loss, expense, liability, damage or claims, whether direct or indirect, against or incurred by CBL arising out of or resulting from such non-compliance.