Investment Guideline (pdf)

Should this English translation of the Investment Guideline differ from the guideline in Finnish in any respect, the Investment Guideline in Finnish shall prevail. 

INVESTING THE ASSETS OF THE INVESTORS’ COMPENSATION FUND 

According to the Act on Investment Firms, Section 44, the assets of the fund shall be invested in a trustworthy and efficient manner, in a manner securing the solvency of the fund and in accordance with the spread risk principle.

The assets of the fund shall not be invested in the equities, shares or issued securities of a member of the compensation fund or a corporation belonging to a same consolidation group with a member.

Investments

The assets of the fund may be invested as follows:

1.      To bonds or money market instruments issued by the State of Finland or by other EEA states provided that the rating of the state at the moment of the investment is at least AA- (Standard & Poor’s) or Aa3 (Moody’s).

2.    To bonds or money market instruments issued or guaranteed by Finnish municipalities.

3.       To fixed-income funds described in the Act on
Investment Funds, Chapter 11 and uniform with the Investment Fund Directive (UCITS).

Should the investments to fixed-income funds exceed two hundred thousand (200 000) euros, the investments shall be made to fixed-income funds managed by at least two (2) different fund management companies.

Should all assets of the fund be invested in fixed-income funds when the capital of the fund payable in cash has been fully augmented, the investments shall be spread to fixed-income funds managed by at least five (5) different fund management companies. While making fund investments, the assets are aimed to be primarily invested in growth funds. 

Equity investments are not allowed.

In making investment decisions, country risk has to be taken into consideration and the investments have to be sufficiently spread.

Investments shall be made in euros.

In addition, to administer its operations, the compensation fund shall have the necessary cash, which may be deposited to a deposit account also in a deposit bank being member of the compensation fund.

Liquidity and maturity of investments

While choosing investments, their liquidity has to be taken into consideration. The investments shall be tradable on the secondary market or the term adequately short or the investments terminable.

Supervising the investments

The Board of Directors of the Investors’ Compensation Fund is responsible for investing the assets and supervising the compliance of the investment guideline. The representative shall present quarterly at the minimum a report on the investments of the fund to the Board of Directors.

Effectiveness of the guideline

The guideline shall become effective on 4 May 2005 and it will be complied with in investment decisions made after becoming effective.