General Good for providers of cross-border fund management services
When providing services in Estonia, the rules of the Investment Funds Act (hereinafter referred to as IFA) and other legislation issued on the basis of the IFA and as far as the provision of management of portfolios of investments, investment advice and safekeeping services are concerned, also the Securities Market Act have to be followed. In addition, also the rules of contract law and principles of consumer protection regulated in the Law on Obligations Act and Consumer Protection Act have to be followed, stating inter alia that if services are marketed in Estonia to consumers or traders comparable to consumers, the terms and conditions and other information given to applicants and clients must be provided in the applicant's or client's mother tongue if it is the Estonian language. The complaints of customers can be treated by the Consumer Protection Board as well as by FSA.
With regard to the prevention of money laundering and terrorist financing the fund manager when exercising the freedom to provide cross-border services in Estonia has to follow the Money Laundering and Terrorist Financing Prevention Act (hereinafter referred to as MLTFPA), other legislation issued on the basis of MLTFPA and EFSA guidelines.
Apart from that, we would like to note that fund manager exercising the freedom to provide cross-border services in Estonia has to follow other requirements that have not been referred to above, but are provided for in the Estonian legislation applicable to the providers of fund management services in Estonia. The Estonian legal acts are available in the Estonian language on the web-site www.riigiteataja.ee both in the Estonian and in the English language on the web-site of the Legal Translation Center www.legaltext.ee. The EFSA guidelines are available on the web-site of the EFSA www.fi.ee.
With regard to financial supervision over the subjects exercising the freedom to provide cross-border fund management services, EFA Article 297 provides that EFSA is entitled to demand the termination of the violating acts or legal acts based on them. In case the demands of EFSA will be denied, EFSA shall inform the competent authority of the home country of the fund manager exercising the freedom to provide cross-border services. If the measures taken by the competent authority of the home country of the fund manager exercising the freedom to provide cross-border services in Estonia deem to be insufficient to terminate the violation, EFSA is entitled to apply measures provided for in the IFA in order to terminate the violations and forbid the further exercise of the freedom to provide cross-border services. The competent authority of the home country will be informed in the due course of the procedures, unless there is a case of emergency.