Press release 11 March 2021
FIN-FSA appoints authorised representative to supervise the activities of Privanet Securities Ltd
The Financial Supervisory Authority (FIN-FSA) has appointed an authorised representative to supervise the activities of Privanet Securities Ltd as of 11 March 2021. The authorised representative is Anders Carlberg, Attorney-at-Law.
According to section 29 of the Act on the Financial Supervisory Authority (878/2008), the FIN-FSA may appoint an authorised representative to supervise the activities of an authorised supervised entity if, for example, there is evidence of incompetence, carelessness or misuse in the management of the entity’s affairs.
Privanet Securities Ltd (hereinafter Privanet) belongs to the Privanet Group and is a subsidiary of Privanet Group Oyj, which is listed on the Nasdaq First North Growth Market.
The FIN-FSA decided to appoint Anders Carlberg to supervise Privanet’s activities after having detected several cases where the company had failed to comply with regulations in its activities, in particular during 2019 and 2020.
The decision is based on an assessment of Privanet’s overall situation. The FIN-FSA has detected negligence in Privanet’s internal capital adequacy management, and the company’s capital adequacy repeatedly fell below the minimum statutory requirement during 2020. In addition, Privanet has provided false and misleading information and has not properly managed conflicts of interest when providing investment services. Furthermore, Privanet has not adequately managed the risks associated with its Realinvest crowdfunding service.
The FIN-FSA considers that the shortcomings in Privanet’s internal control and risk management have, at least in part, caused the above-mentioned failures. These failures have been extensive, and the FIN-FSA cannot verify that Privanet’s corrective measures have been adequate in all situations. For this reason, the FIN-FSA considers the appointment of an authorised representative to be an appropriate means of ensuring that Privanet’s activities meet the regulatory requirements.
The FIN-FSA’s decision does not require any actions by Privanet’s customers. The FIN-FSA will reassess the necessity of an authorised representative in September 2021, at the latest.
The decision is not yet legally binding. Privanet has the right to appeal the decision within 30 days of receipt of notice of said decision. Information on the legal validity of the decision is available on the FIN-FSA website.
Armi Taipale, Head of Department, Capital Markets Supervision. Requests for interviews are coordinated by FIN-FSA Communications, tel. +358 9 183 5030, weekdays 9.00–16.00.
Decision by Financial Supervisory Authority (pdf, in Finnish)