The Finnish Financial Supervision Authority (FIN-FSA) has appointed an authorised representative to supervise the operations of private investment firm Privanet Securities Oy.
The authority makes such appointments in order to oversee the activities of a company in cases where incompetence, negligence or misconduct has been detected.
The FIN-FSA said it made the move after noting several regulation compliance failures by Privanet, particularly over the past two years.
The authority said it also found negligence in the investment firm's internal capital adequacy management and that the company's capital adequacy repeatedly fell below minimum statutory requirements during 2020.
In addition, the authority said Privanet provided false and misleading information and had not properly managed conflicts of interest in providing investment services. FIN-FSA also deemed that Privanet had not adequately managed the risks associated with its crowdfunding service, Realinvest.