Helsinki Administrative Court rejects appeal by Privanet Capital Markets Ltd against penalty payment imposed by FIN-FSAOn 1 February 2022, Helsinki Administrative Court issued a decision concerning the appeal by Privanet Capital Markets Ltd (also referred to below as ‘the company’) against a EUR 450,000 penalty payment imposed on the company by the Financial Supervisory Authority (FIN-FSA) in July 2020.
According to the FIN-FSA’s decision, Privanet Capital Markets Ltd had violated and failed to comply with several provisions of the Securities Markets Act and the Act on Investment Services during 2015–2017. There had been many cases of the company providing false and misleading information in its marketing and selling of shares of Lapis Rakennus Holding Oy and debt certificates of Lapis Rakennus Oy. The company had also neglected its responsibilities to manage conflicts of interest.
In its appeal, Privanet Capital Markets Ltd had primarily called on Helsinki Administrative Court to annul the combined penalty payment imposed by the FIN-FSA, and to amend the FIN-FSA decision in this respect, or otherwise to reduce the amount of the penalty payment. The company did not appeal against the public warning issued by the FIN-FSA on 1 July 2020, in respect of which the FIN-FSA’s decision is legally binding.
On 1 February 2022, Helsinki Administrative Court rejected Privanet Capital Markets Ltd’s appeal. The Court considered that the FIN-FSA in its decision had properly taken into account the factors connected with the overall assessment of the amount of the combined penalty payment and that it was able, on the basis of its discretionary power, to impose a combined penalty payment of EUR 450,000.
The Administrative Court’s decision is not legally binding. An appeal against the decision may be lodged with the Supreme Administrative Court if it grants leave to appeal. The appeal must be lodged within 30 days of service of the Administrative Court’s decision.
The investment firm authorisation of Privanet Capital Markets Ltd was revoked on 7 October 2020 by the FIN-FSA upon the company’s own request. Privanet Capital Markets Ltd’s present business name is PCM Holding Oy.
Tero Kurenmaa, Head of Legal
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Administrative Court decision 1 February 2022 (in Finnish)
FIN-FSA press release 2 July 2020