Aggregated News From Investment Management Regulators

Thematic review on the organisation of depositary activities


Please complete the required fields.

The FIN-FSA has carried out a thematic review on the organisation of depositary activities.

Regulation concerning depositaries1 was tightened due to misconduct surfacing in the context of the financial crisis. The duties of a depositary are determined in detail in EU-level regulations, which entered into force regarding alternative investment funds on 22 July 2013, and regarding common funds on 13 October 2016.

The thematic review was conducted by means of a survey sent to all depositaries having the right to operate in Finland as a depositary for a common fund or an alternative investment fund. 12 operators responded to the survey, five of which were branches of a foreign EEA credit institution.

The depositaries were requested to provide information on the quality and scope of their depositary activities, the organisation of the depositary activities and on the performance of supervisory duties. The thematic review did not address how the custody of the funds’ assets was arranged.

The responses showed that the market for depositary services is highly concentrated: only ten depositaries provided depositary services and the majority of assets was kept in custody by the three most significant agents.

The FIN-FSA wishes to point depositaries’ attention to adequate personnel resources in supervisory duties and to the need of developing automated systems in order that the depositaries have the genuine capacity to perform all of their statutory duties.

With respect to the duties reviewed, the FIN-FSA was unable to ascertain that the depositaries perform statutory supervision in all circumstances with a frequency required by fund-level risk assessment. The supervisory procedures observed by the depositary must be based on a risk assessment conducted by the depositary, which, in the FIN-FSA’s view, should be documented for example in a supervision plan.

Depositaries must also note that the European Securities and Markets Authority (ESMA) has provided interpretations concerning the application of regulation on depositaries2.

For further information, please contact

  • Merja Junnonen, Senior Legal Advisor, tel. +358 9 183 5554 or merja.junnonen(at) (until 28 July 2019)
  • Eeva Granskog, Head of Division, tel. +358 9 183 5203 or eeva.granskog(at) (from 1 July 2019 to 15 July 2019)


Thematic review on the organization of depositary activities

  • 1The Mutual Funds Act (213/2019) and the UCITS Regulation (Commission Delegated Regulation (EU) 2016/438 of 17 December 2015 supplementing Directive 2009/65/EC of the European Parliament and of the Council with regard to obligations of depositaries). The Act on Alternative Investment Managers 162/2014 and the AIFM Regulation (Commission Delegated Regulation No 231/2013 of 19 December 2012 supplementing Directive 2011/61/EU of the European Parliament and of the Council with regard to exemptions, general operating conditions, depositaries, leverage, transparency and supervision).
    2Questions and Answers on Application of the AIFMD and Application of the UCITS Directive

Source link

Regulator Information

Abbreviation: FIN-FSA
Jurisdiction: Finland

Recent Articles

“We’ve Seen This Story Before” Remarks before the Piper Sandler Global Exchange & Fintech Conference

Washington D.C. Thank you, Rich, for that kind introduction.

OCC Hosts Risk Governance and Capital Markets Workshops in Denver

  • +1Bank Management, Banker Education, Board of Directors & Management, Community Banks, Operational Risk Management
WASHINGTON—The Office of the Comptroller of the Curren

SEC, NASAA, FINRA to Co-Host Webinar on Identifying and Reporting Suspected Senior Financial Exploitation

Regulators to Discuss Protecting Seniors During World Elder Abuse Awareness Day WASHINGTON—The Securities and Exchange Commission (SEC), the North American Securities Administrators Association (NASA

Financial sector’s capital position as at 31 March 2023: The Finnish financial sector’s capital position has remained good – risks in the operating environment...

The state of the Finnish financial sector has remained good in the early months of the year, despite the continued high level of risks...

Notification For The 2023 Capital Market Committee 2nd Webinar Meeting

The Director General has approved the 2023 Capital Market Committee (CMC) 2nd Webinar Meeting to hold on Wednesday, 23rd, August 2023. The usual interface with...

Get the latest from Regulatory.News in your inbox!