25/03/2025
Harju County Court approved the position of Finantsinspektsioon that there were serious shortcomings in how Tuleva Fondid AS advertised its financial services. As Tuleva Fondid AS did not have any previous criminal record and as there was no grounds to think that the pension fund manager would continue to act illegally, the court reduced the fine issued to Tuleva from the initial 100,000 euros to 17,500 euros.
“The decision of Harju County Court confirms the position of Finantsinspektsioon that Tuleva Fondid AS broke the Advertising Act, which is intended to protect consumers and ensure fair competition. Adverts for financial services have to be clear, honest and in compliance with the requirements so that consumers can make informed decisions”, said member of the Finantsinspektsioon management board Siim Tammer.
Finantsinspektsioon is considering whether to appeal against the decision to reduce the fine. “Breaking the law in the financial sector must not be permitted to be profitable, nor to end in a fine that is distorted in value. The company in the current case could have been fined up to 400,000 euros, and as the fine rates in the financial sector have risen in the meantime, then such an offence today could attract a fine of up to as much as 5 million euros. If fines are going to be reduced by so much, it becomes reasonable to ask whether the state has any interest at all in intervening when misdemeanours are committed”.
Finantsinspektsioon found that Tuleva Fondid AS had released adverts for financial services on 20-31.07.2023 that did not meet all the requirements in the Advertising Act and the Investment Funds Act. The adverts did not contain the advice to viewers to familiarise themselves with the terms of the financial service and, if necessary, to consult an expert. Neither did the adverts give the obligatory information on where to find the prospectus and basic information for the funds being advertised. The company also released adverts that appeared to guarantee the performance of the fund or that were misleading.
The decision of the Harju County Court can be appealed within 30 days of it being published. See also the Finantsinspektsioon press release about the fine www.fi.ee.