Information for investors

Purpose and scope of the Fund

Invested assets are primarily the responsibility of the investment service provider or credit institution whose client the investor is.

However, if the service provider is unable to pay the investment receivables to the investor according to their contract, and if the service provider is a member of the Fund, the investment then falls within the scope of the Fund’s compensation.

The Fund membership covers transmission and execution of orders, asset management and placing of financial instruments.

The Fund does not cover unit-linked insurance policies or investment funds.

Fund members

All Finnish companies that offer investment services are members of the Investors’ Compensation Fund. These companies include investment service providers, credit institutions and fund management companies that provide asset management services.

Membership fees and other member contributions accumulate capital for covering possible compensation cases and the Fund’s administrative costs.

Compensation cover

Investors’ Compensation Fund protects non-professional clients. A private person is a non-professional client unless specifically classified as a professional client by their service provider. The client’s invested assets are legally required to be kept separate from the Fund member’s own
assets and from other clients’ assets. Therefore, under normal circumstances, the client should be able to obtain their receivables from the service provider without undue delay.

In unusual circumstances, for example if the client’s assets have been merged with the service provider’s assets, the service provider may be unable to pay them out to the client.

If the service provider has not paid out the investor’s receivables according to their investment contract, these receivables are covered by the Investors’ Compensation Fund. The condition for this is that the service provider is a member of the Fund and deemed insolvent.

The Fund does not cover, for example, losses due to changes in value of investments. A client’s investment decisions are always their own responsibility.

Compensation amount

The amount compensated for an individual investor is 90% of their receivables from one service provider, up to a maximum of €20,000. This amount is calculated on the market value of the date when the Finnish Financial Supervisory Authority (FIN-FSA) decided on the compensation requirement, or when the service provider was ordered in liquidation, corporate restructuring, or bankruptcy. In case of multiple dates, the earliest date takes precedence.

Due to the 90% rule, investors whose receivables amount to €22,222 or more are eligible to the maximum compensation €20,000. Receivables of €20,000 are compensated for €18,000.

Example scenario: if an investor’s receivables amount to €50,000 and their service provider is declared bankrupt, the full amount of €50,000 should nevertheless be safe because the investor’s assets are legally required to be kept separate from the service provider’s assets. If the service provider had illegally merged the investors’ funds into their own funds, the investor would be eligible to the maximum compensation of €20,000 from the Investors’ Compensation Fund, and would attempt to recover the remaining €30,000 from the bankruptcy estate.

Compensation claim

An investor may apply for compensation by reporting the receivables to the Finnish Financial Supervisory Authority (FIN-FSA). Within 21 days of receiving the information, FIN-FSA will decide whether the claim falls within the scope of the Fund.

Compensation from the Fund requires that the service provider has not paid the receivables due to permanent insolvency. Compensation does not apply if the receivables are unpaid for some other reason, or if the payment is delayed due to technical issues, strike or other situation beyond the service provider’s control.

For the compensation decision to be made, the service provider must provide information on all investors and their receivables to FIN-FSA and the Fund.

FIN-FSA will announce its decision to the Fund and the service provider. If the service provider has a branch abroad, the decision is also announced to the relevant authorities and corresponding investor protection system of the country in question.

The Fund will report FIN-FSA’s decision in writing to all clients of the service provider. In addition, the Fund will publish a notice in the official journal of Finland and the largest newspapers of the region, announcing what actions the investors must take to secure their receivables.

Period for compensation payment

The Fund must pay out investors’ receivables without undue delay and no later than three months after FIN-FSA’s decision. If the service provider is ordered in liquidation, corporate restructuring or bankruptcy, the maximum duration of three months is calculated from the date of said order.

FIN-FSA may grant an additional three months’ term of payment for the compensations in case such a delay is justified. The Fund must regardless pay out the compensations without undue delay if delayed payment causes disproportionate hardship for the recipient, for example by endangering their livelihood.


  • Non-professional clients
  • Undisputed but unpaid receivables
  • Permanently insolvent service provider

Not compensated:

  • Professional clients
  • Unit-linked insurance policies
  • Losses from investment activities

The Fund's assets

Legislation is aimed at ensuring that the Fund has sufficient capital to pay out compensations to investors. The legally required minimum capital is €12 million. If the Fund’s assets nevertheless turn out to be insufficient, the Fund may apply for a loan to cover the compensations.

Administration of the Fund

The Fund is managed by a delegation appointed by the members of the Fund, and a board of directors appointed by the delegation. The board may appoint a secretary. The delegation is tasked with supervising that the Fund is managed according to its rules, laws, and authorities’ orders and decisions.

The board consists of representatives of various investment service providers and credit institutions. The board represents the Fund and manages its operations. The board’s appointed secretary-general manages the Fund’s routine matters.

The Fund is supervised by FIN-FSA and audited by an authorised public accountant.

Additional information is available from the Investors’ Compensation Fund, from the Finnish Financial Supervisory Authority FIN-FSA, and from Finnish investment service providers.