Other services – Finland
Securities lending and borrowing
All Finnish debt securities eligible in CBL qualify for CBL’s securities lending and borrowing programme.
Equities and warrants are not eligible for CBL's securities lending and borrowing programme.
Multi-Market securities service
Finnish domestic securities can be listed on foreign exchanges. These multi-market equities are traded on more than one stock exchange and are eligible for deposit and settlement in more than one CSD.
For further information, please refer to the Multi-Market Securities Guide.
As there are an additional number of intermediaries in the settlement chain, cross-border transfers and realignments may take several days to settle. Consequently, Clearstream Banking cannot guarantee timely settlement of cross-border instructions which means that CSDR SDR cash penalties might occur if there is late or failed settlement.
Clients are therefore strongly recommended to send their cross-border settlement instructions to Clearstream Banking as early as possible to avoid settlement delays.
Please refer to the Disclosure Requirements - Finland.
Securities held on CBL account in EFI that are beneficially owned by either Finnish nationals or Finnish tax residents cannot be held in CBL.
Issuance of some of the Finnish securities is occurring at LuxCSD. For more details please refer to the Market Link Guide - LuxCSD.
Note: It is the responsibility of the CBL client to ensure compliance with local holding restrictions. If a requirement is not met, it is the client who is liable to any related penalty. Clients may seek independent legal advice on the interpretation of Finnish disclosure requirements.
For further information, please refer to the Investment regulation section of the Market Profile - Finland.
Guarantee Fund of EFI - indemnification
As an account operator in EFI's systems, CBL is required to make, or cause to be made on its behalf, Guarantee Payments (within the meaning of the Finnish Act on the Book-Entry System, as amended) to Euroclear Finland’s Guarantee Fund (the “CSD Fund”).
The purpose of the CSD Fund is to safeguard the fulfilment of the legal liability in damages of an account operator up to the statutory maximum, in accordance with the Rules of the Finnish Central Securities Depository Fund (the “Rules”).
In accordance with the Rules, the Guarantee Payments by account operators could be used by the CSD Fund to pay compensation for damages that have not resulted from the actions of the account operator that has issued the Guarantee Payments. This is subject to:
- The liable account operator being bankrupt or otherwise insolvent and unable to pay the compensation; and
- A decision to pay compensation from the Guarantee Fund by the Finnish financial markets regulator FIN-FSA.
Should the Guarantee Payments issued on behalf of CBL be used to pay compensation for damages, and provided that such damages do not result from CBL’s negligence or wilful misconduct, then, by holding Finnish securities via CBL, clients undertake to indemnify CBL on a pro-rata basis of such payment. The basis for the calculation of such pro-rata portion shall be the clients’ holding on Finnish securities held via CBL in EFI's systems on the date on which CBL is notified of the above-mentioned FIN-FSA decision.
Please refer to the Finland tax area.