Wealth management and investor protection: what the compensation fund covers
Updated
In short (16 October 2026): Discretionary asset management can fall under the compensation fund if the service provider is a member of the fund; compensation covers only client assets that cannot be returned. Compensation is 90% of the claim, at most €20,000 per investor and service provider. Wealth management carried out in an insurance wrapper falls outside the protection (Aktia, Säästöpankki, POP Bank and Mandatum).
Contents
- What is discretionary wealth management?
- Three ways to carry out wealth management
- What does the Investors' Compensation Fund cover?
- What does the protection not cover?
- Why is wealth management inside an insurance wrapper outside the protection?
- How do I claim compensation?
- What should I ask before signing an agreement?
In discretionary wealth management (full power of attorney), the wealth manager makes the investment decisions for you. The Investors' Compensation Fund can protect asset management to a limited extent if the service provider is a member of the fund, but it does not protect unit-linked insurance. Compensation covers only client assets that cannot be returned. This guide is based on the law, an authority's description and the service providers' own pages, retrieved on 16 October 2026. The limits and prices of the services are on the page private banking services comparison.
What is discretionary wealth management?
The legal name for the service is asset management (omaisuudenhoito). It is an investment service under the Investment Services Act (747/2012) (Finnish), and an investment firm needs a licence to offer it. Before providing the service, the firm must obtain information on the client's knowledge, experience, financial situation, ability to bear losses and investment objectives.
According to OP, wealth management is an agreement under which a wealth manager looks after the client's assets. The decisions can be given wholly or partly to the asset manager, and the asset manager is required to hold a licence in Finland (the provider's own information, OP: wealth management services, Finnish).
In discretionary wealth management, the wealth manager makes individual investment decisions according to an agreed investment plan. In advisory wealth management, the client makes the final decisions. SEB describes the same difference: in discretionary wealth management individual investment decisions are made on your behalf within a pre-agreed plan, while in advisory management the client takes an active part in the decisions (SEB: Professional Family Office).
Published minimum amounts for discretionary management:
| Provider and tier | Minimum | What the service is | Notes |
|---|---|---|---|
| Evli Digital | €10,000 | Digital discretionary management, "You can start using the service with an investment of just €10,000." | |
| Alexandria full-mandate asset management | €150,000 | Discretionary asset management suits you when your investable assets exceed €150,000. | |
| UB individual wealth management (full power of attorney) | €200,000 | Discretionary management is aimed at investment amounts of over €200,000. | |
| Aktia Avara (insurance-wrapped wealth management) | €500,000 | Aktia Avara Sijoitusvakuutus and Kapitalisaatiosopimus are discretionary management in an insurance wrapper for over €500,000 of investment assets. |
The large banks do not publish a separate minimum for a discretionary portfolio. The full comparison is on the page private banking services compared.
Three ways to carry out wealth management
The way it is carried out determines the protection, so it is worth finding out before you sign.
- A direct power-of-attorney portfolio. The wealth manager manages shares and funds held in your own name under a power of attorney. An example is Nordea's share and fund portfolios (Nordea: discretionary wealth management, Finnish).
- Inside an insurance wrapper. The wealth management is a unit-linked insurance or a capitalisation agreement. Aktia Avara's assets are always managed on a discretionary model (Aktia Avara), and Mandatum's wealth management agreement is a unit-linked insurance (Mandatum). Nordea's investment baskets are also inside an insurance wrapper (Nordea: discretionary wealth management). The protection of a policyholder is governed by insurance legislation, and the Investors' Compensation Fund does not apply to it.
- Through wealth management funds. The service invests in ready-made wealth management funds, for example the Säästöpankki fund-based wealth management (Rahastovarainhoito) (Säästöpankki). Investment fund activity is not covered by the Investors' Compensation Fund (S-Bank's compensation fund notice). This guide draws no other conclusion about the protection of a fund investor, so ask the provider about the protection of your agreement.
What does the Investors' Compensation Fund cover?
The Investors' Compensation Fund secures an investor's claims if an investment service provider belonging to the fund cannot pay them in accordance with the agreement. The protection covers, among other things, receiving and executing orders, asset management and arranging an issue. The members of the fund are Finnish firms offering investment services, such as investment firms, credit institutions and fund management companies offering asset management services (S-Bank's compensation fund notice, in force since 6 September 2022).
Compensation is 90% of the claim, at most €20,000 per investor and service provider (Nordea: Investors' Compensation Fund, Finnish). The protection applies only to non-professional investors, generally private individuals. A private individual can be professional only on the basis of their own declaration.
According to the Ministry of Finance, financial market regulation protects the customer of a bank, investment firm and fund management company through, among other things, the deposit guarantee scheme and the investors' compensation scheme (Ministry of Finance: protection of customers and investors, Finnish).
What does the protection not cover?
The protection does not cover losses caused by price changes or losses caused by poor advice. It does not apply to investment fund activity, unit-linked insurance or deposits. Deposits are compensated either from the Deposit Guarantee Fund or from the Investors' Compensation Fund, but you cannot get compensation from both for the same assets. For more on deposit guarantee, see the guide deposit guarantee.
Client assets must be kept separate from the service provider's own assets. If the service provider goes bankrupt, the assets in client asset accounts do not form part of the bankruptcy estate. The compensation fund comes into play only if the assets have exceptionally been mixed up or cannot be returned and the member is insolvent.
Why is wealth management inside an insurance wrapper outside the protection?
The compensation fund does not cover unit-linked insurance. When discretionary wealth management is carried out inside an insurance wrapper, the agreement is a unit-linked insurance, and it therefore falls outside the compensation fund. A direct power-of-attorney portfolio is asset management and can be covered if the provider is a member of the fund. This is a conclusion from the sources above, not an authority's decision on an individual product, so check the protection of your own agreement with the provider.
In Pankkitutka's data these providers are marked as insurance wrapper (Mandatum, Aktia Avara and the Säästöpankki and POP Bank wealth management insurances):
How do I claim compensation?
You claim compensation by notifying the claim to the Financial Supervisory Authority (Finanssivalvonta), which decides within 21 days whether the compensation fund must pay (S-Bank's compensation fund notice).
What should I ask before signing an agreement?
- Is the service a direct power-of-attorney portfolio, inside an insurance wrapper or through wealth management funds?
- Is the service provider a member of the Investors' Compensation Fund?
- Which assets does the wealth threshold count: the family's assets, only the provider's assets or net of debts?
- What is the total price? Wealth management fees are rarely published, and the price is often agreed in an offer.
Related guides
Frequently asked questions
What is discretionary management?
In October 2026 in discretionary management the wealth manager makes the individual investment decisions on your behalf under an agreed investment plan. The legal name is asset management (omaisuudenhoito), and it is an investment service under the Investment Services Act that requires a licence. In advisory management you decide yourself and the wealth manager advises. The published discretionary minimums and providers are on the page /en/private-banking.
Does the Investors' Compensation Fund cover wealth management?
In October 2026 the Investors' Compensation Fund can secure claims arising from asset management if a member of the fund is unable to pay them; compensation covers only client assets that cannot be returned. Compensation is 90% of the claim, at most €20,000 per investor and service provider, and the protection applies to non-professional investors. The protection does not cover losses caused by price movements or unit-linked insurance policies. Compensation is claimed from the Financial Supervisory Authority (Finanssivalvonta).
Why is wealth management in an insurance wrapper outside investor protection?
In October 2026 the compensation fund does not cover unit-linked insurance policies. When wealth management is carried out in an insurance wrapper, the contract is a unit-linked insurance policy, so it falls outside the fund. In Pankkitutka's data the insurance wrappers are Aktia, Säästöpankki, POP Bank and Mandatum. This is a conclusion drawn from the wording of the providers' pages and the compensation fund notice: check the protection of your own contract with the provider.