Country Manuals Private Banking –
Dear Client,
We would like to inform you that BRP has updated its COUNTRY MANUAL PRIVATE BANKING for the following jurisdiction:
- BHUTAN OUT OF BANK’S COUNTRY OF ESTABLISHMENT (Def, RS, BT & RT)
| SOURCE OF CHANGES | ANSWERS |
|---|---|
| Law / Regulation | YES |
| New Position of the Authorities | NO |
| Evolution of Expert’s interpretation | NO |
Regulatory Template, Regulatory Summary and Behaviour Template
Material changes
According to local experts, the FIN-FSA has adopted a rather strict interpretation of what constitutes provision of investment services in Finland. Recital 16 of Commission Delegated Regulation (EU) 2017/565 (“Delegated Regulation”) states that acts carried out by an investment firm that are preparatory to the provision of an investment service or carrying out an investment activity should be considered as an integral part of that service or activity. The FIN-FSA has interpreted this statement to mean that even where an entity does not provide investment services but, for example, carries out measures relating to KYC on behalf of an entity providing investment services, the entity carrying out KYC should be regarded as providing the investment service.
Therefore, in order to reduce risks, a foreign unlicensed bank should follow the cross-border rules in place for investment services when collecting information on the client’s risk profile (i.e. collect such documents only upon request).
Non-material changes
The chapter on lasting presence for income tax purposes has been amended with more detailed information. In addition, throughout the manual, comments/conditions have been reworded and further non-material changes have been made.
Implications for business relations with third parties
With respect to the provision of documentation to the EAM (such as documentation on the Bank’s banking and investment services, investment research and financial analysis or recommendation lists), our Country Manual now distinguishes between the provision to the EAM for remittance to the end client on one hand and the provision to the EAM for the EAM’s own professional purposes on the other hand. The answers have been amended accordingly.
Regulatory Summary
This document has now a more user-friendly layout and reflects the changes contained in the RT.
BT Short Comparison
BRP has created a comparison document allowing users to quickly identify the modifications made compared to the previous version of the PB Manual (BT Short Comparison). The BT Short Comparison can be found on BRP’s platform (mybrponline) in the Search tab by entering in the Document Field “CM PB BT SHORT COMP” and “FINLAND” in the Target Country Field.
The BT Short Comparison should be read as follows:
The first column contains a short description of the activity in question. The second column contains the answers of the previous version of the Country Manual (online until the day of the alert). The third column contains the new answers of the most recent version of the Country Manual. Only the modified answers are displayed (in color). If the answers in the new version are unchanged compared to the previous version, they are shaded in grey.
For more information, please contact us: info@brpsa.com
Best regards,