I wonder if there are any independent investment advisors in Finland? That is, those who have sufficient professional expertise but no ties to sellers of investment products. They earn their income transparently from fees paid by the investor client.
I have heard rumors of such things from the States, and in discussions there, I have heard warnings about all kinds of private banking setups and others where advisors have a conflict of interest. In Finland, I haven’t found any retail-level players yet.
My own wealth isn’t enough for any personal service with a commission fee, but I know someone who has a bit more wealth but lacks the expertise and doesn’t really have the interest to acquire it. Therefore, it would be good to find a service that could be recommended.
A very good question. I would like to know as well. While independent asset management (or as independent as possible) is indeed offered, I haven’t found any providers focusing purely on distributing advice either.
The reason lies in the Investment Services Act and other regulations. Independent investment advice is a licensed activity. To obtain an operating license and conduct business, an independent investment advisor must fulfill practically the same criteria as those offering products. Operations must be organized in a specific (expensive) way, and the own capital requirements are relatively high. Customers, on the other hand, do not generate enough revenue for the service provider to make those financial investments pay off with interest. Skilled investors find better uses for their money than running an investment advisory firm.
The law could be bypassed if one could completely avoid giving a recommendation to sell or buy a specific stock, fund, or any other financial instrument. According to Section 15, Point 5 of the Investment Services Act, investment advice is defined in this way: Sijoituspalvelulaki | 747/2012 | Lainsäädäntö | Finlex
But it would be quite difficult. “We offer investment consulting, but not investment advice”?
Didn’t Mika Hyttinen use to offer some kind of service? The hourly rate for consultations at the office was quite expensive, though. I wonder if regulation put an end to that as well.
Which entities are these? I also include discretionary asset management, as long as there are no ties or conflicts of interest. Americans speak of the concept of fiduciary, meaning acting solely on behalf of one principal to advance their interests. All the asset management firms I have come across are at least part of the same group as an investment product provider.