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Investor protection

The website on investor protection specifies important information related to investments, which is necessary for each investor for making investment decisions and using the investment services and ancillary investment services provided by AS SEB Pank or its subsidiaries (hereinafter: the Bank or SEB). We would ask each investor to read the information provided in this website before making any investment decisions. In the case of further questions, please contact an SEB investment consultant.


Different Kinds and Sources of Risk
Any investment activity involves risks, i.e. the threat of suffering losses as well as the threat of failing to achieve the planned investment result. Investment risks must be assessed before making an investment decision as well as regularly when holding a security or a contract. The brief overview given on this website does not provide an exhaustive list or description of all the risks and considerations related to investment.

Each client must, depending on specific circumstances, carefully analyse and independently assess risks related to investment activities and take their possible impact and consequences into account. Thereby the properties and possible yield of each specific security, service or other invesment product, the client's own risk tolerance and investment objectives must also be taken into consideration.

Execution of Orders

Upon the execution and forwarding of securities transaction orders issued by clients, SEB follows certain principles and rules that have been formalised as the following Best Execution Policy.


Valid from 20.12.2016


This document “Best Execution policy” (hereinafter the “Policy”) specifies the procedures, which AS SEB Pank (hereinafter SEB) will follow when executing or transmitting transaction orders (hereinafter the “Order”) in financial instruments in the name or on behalf of its retail and professional clients. SEB will take all reasonable steps in accordance with this Policy in order to execute the client’s Order in the best possible way. Please note that although the procedures set out in the Policy are generally expected to produce the best possible result for SEB’s clients, there is no guarantee that circumstances will enable this to be achieved in every single transaction.
By giving SEB an Order the client agrees to the transaction being executed in accordance with this Policy.

Where a client requests a quote (request for quote - RQF) and accepts it or where the terms (incl. the price) of a deal are otherwise specifically agreed between SEB and the client before execution of the transaction, the resultant transaction will for a retail client be considered to constitute Best Execution, and will for a professional client a RQF transaction executed on the client’s initiative be outside the terms of this Policy.

A single Order of a client can be executed in parts pursuant to rules specified in this Policy. 

SEB may restrict trading with specific securities or certain types of securities or limit the types of Orders to be accepted.
SEB is not obliged to immediately disclose to other market participants the Order with the price set by the client in connection with a share accepted to the market for trading, which is not promptly executed on prevailing market conditions.


Where a client gives SEB a specific instruction on how all or part of its Order should be executed, the relevant Order will be executed in accordance with such instructions. SEB would like to stress that providing specific instructions by the client may prevent SEB from implementing the measures and following the procedures set out in this Policy, which SEB has developed and introduced to obtain the best possible result.


In executing a client’s Order SEB will take into account the following matters:

  • the price at which it is likely to be executed and the costs which will be incurred;
  • the speed and likelihood of both execution and settlement;
  • the size and nature of the Order and its impact on the market; and
  • any other factor which SEB considers to be relevant to the execution of the Order and in the best interest of the client.

At the time of execution SEB will weigh also such factors as client’s classification, characteristics of the client and their Order, the financial instrument involved, characteristics of the execution venue, where the Order can be forwarded and the prevailing market conditions.

Unless special circumstances apply, SEB’s priority in executing transactions will be to obtain the best possible result in terms of the total consideration to be paid or received by the client, including the price of the financial instrument and costs inherent in the execution (incl. service charges of the execution venue, settlement fees and other fees related to the execution of the Order). In certain cases, e.g. execution of a Order of a larger size, the speed and likelihood of execution may be more relevant factors than the total value of the transaction.


This section applies to financial instruments traded with reasonable liquidity on a regulated market (e.g. stock exchange), on an MTF (e.g. First North) or on another execution venue (e.g. systematic internaliser of the client’s Orders, provider of liquidity or SEB itself). Such financial instruments are inter alia:

  • shares;
  • bonds and other interest-bearing or discounted debt instruments, including index-linked bonds;
  • standardised derivatives;
  • covered warrants, fund units (ETF) and certificates (ETC) traded at the stock exchange, and
  • other financial instruments traded on an external execution venue.

SEB will execute its client’s Order in such financial instruments in the following way:

  • The Order will normally be routed for execution to the execution venue SEB considers to provide the best combined result for the client taking into account the factors in clause 3.
  • Where the Order is of a larger size, such that care is required in its execution in Order to minimize the adverse impact of the Order to the market, SEB will execute the Order at such times, and in such separate parts in the market, as appears in its reasonable judgement to be necessary to produce the best possible overall result for the client under the circumstances as they develop.
  • Should circumstances permit it, and provided that it appears to SEB that it will not operate to the client’s overall disadvantage, SEB may choose to execute all or part of the Order against either its own book or directly against the Order of another counterparty or another of its clients. However, SEB will only do this if it appears likely at the time of dealing that the result is at least as good for the client as would have been obtained on the regulated market.
  • SEB may offer to take an Order of a larger size directly onto its own book at a price, which may be less advantageous than the price prevailing on the market for small volumes, but is not likely to be worse than the price that could have been obtained on the market for transactions equal to the size of the Order. Conditions related to such a transaction shall be agreed upon with the client before execution of the Order.
  • Where a client requests SEB to make a quote for a transaction off its own books, SEB will take reasonable care to ensure that the price so quoted is fair in all the circumstances.


This section applies to financial instruments which are not traded with reasonable liquidity on a regulated market or on another execution venue. Such instruments include both standardised but non-exchange traded instruments and instruments created (whether by SEB or another intermediary) from one or more components, some of which may be listed or traded in their own right, for example in order to provide an instrument designed to meet specific exposure requirement. Such financial instruments are inter alia:

  • bonds and other interest-bearing or discounted debt instruments;
  • OTC derivatives and contracts;
  • financial instruments in which the return is linked to the performance of a specific index or reference rate;
  • instruments based on or involving contracts for difference;
  • shares, not traded on a regulated market, on an MTF or on other regulated market
  • fund units (not ETF) and
  • other financial instruments not regularly traded on a MTF or on a regulated market or other execution venue.

SEB will execute its client’s Order in such a financial instrument in the following way:

  • SEB may execute the Order against its own book, at a sound price. The pricing will take into account the prevailing market price available to SEB or level of the underlying asset, index or rate incorporated into the structure of the instrument, or other relevant market factors or events. The pricing will in addition take into account the risks and costs involved in SEB’s business model for the instrument in question. These are costs inherent in execution of the client’s Order on SEB’s account, counterparty credit risk or risk position assumed in creating the instrument and making it available to clients – and SEB’s reasonable profit margin in the light of these. Upon execution of Orders of financial instruments not regularly traded on the market, SEB proceeds from a principle that where a client requests a quote from SEB and accepts it or where the terms of a deal are otherwise specifically agreed between SEB and the client, the resultant transaction will for a client be considered to constitute Best Execution.
  • To be able to provide execution in financial instruments for which there is no readily available market quote, SEB may execute the Order on account of a non-market counterparty or the Order of another of its clients.
  • Specifically for fund units, SEB will execute its client’s Order by transmitting it, directly or through an intermediary, to the fund management company (or equivalent) responsible for administering the fund in question.


SEB will execute securities lending transactions against SEB's own book at a fair price and in accordance with special terms agreed with the client. SEB may borrow free of charge the securities, held for the client in the nominee account or in another account opened for joint safekeeping of the clients’ securities, above all for due fulfilment of settlements.   

SEB will execute primary market transactions in financial instruments by transmitting the client Order to the issuer, or the agent of the issuer, in accordance with the client's instruction or marking the specific financial instrument on its own account, based on the Order given to SEB by the client. In both cases the terms and conditions of the specific issue must be followed.


SEB shall not execute transactions against its own book at a price, which is equal or better than the price of the Orders received from the clients for the same security before SEB has executed all such Orders of the clients for executing transactions with the same security (except for normal activity within market-making, stabilisation or buy-back programme). Execution of transactions against its own book is prohibited also, if SEB is aware of the fact that its client wishes to present an Order for executing a transaction of the same nature or if this may be damaging to the client in any other way.

SEB may execute the Orders of different clients against its own book only, if such execution is in the best interests of each client and ensures Best Execution of the Order presented by the same pursuant to the Best Execution Policy.

If SEB decides to take a position for its own account (except for if this done to facilitate the execution of the client’s Order), the time of the respective decision must be recorded, and SEB may take a position for its own account only, after all clients’ Orders received up to the moment of making the decision to execute a transaction against SEB’s own books have been executed.


SEB participates in a variety of different regulated markets and MTF and may transmit Orders and execute transactions in the name of SEB with the purpose of market making on the Nasdaq OMX Baltic Stock Exchanges. In addition, SEB has direct access to a number of other execution venues, chosen in each case (in addition to other reasons) proceeding from the fact that use of a specific execution venue must help execution of Orders to the best advantage of its clients, considering relative importance of execution factors.

For a list of execution venues frequently used by SEB, please refer to

Note, however, that SEB may execute client Orders on venues other than those on the list when it considers that this is appropriate in the light of the circumstances at the time and unlikely to produce a worse overall result for the client.


When providing portfolio management services and/or transmitting its clients’ Orders, SEB will handle the placing of Orders in the way it regards at the time as being in the best interest of the client, and, where it deems it appropriate, may use the services of a third party intermediary (broker).

SEB will make a careful assessment of any third party broker it uses and will establish a relationship with it. When establishing a business relationship with a third party broker through which or by which client Orders are executed, SEB will consider factors such as price, costs, speed and likelihood of both execution and settlement, as well as other factors that might be significant at the time of placement and transmission of Orders and in the best interest of the client. The list of third party brokers used by SEB can be found on website www.seb.eeinvestorkaitse.


SEB may execute client Orders outside a regulated market or an MTF (Multilateral Trading Facility) upon consent of the client. This applies primarily to non-exchange traded financial instruments, but could also be the case for exchange-traded financial instruments.


SEB will execute each client’s Orders in a prompt, fair and expeditious manner and will generally seek to execute comparable Orders in the sequence in which they are received, unless for example the characteristics of the Order or prevailing market conditions make this impracticable and this exception is justified and in the best interest of the client.

SEB will execute the client’s Order promptly after receipt hereof, whereas the time sequence in receiving the Orders may depend on the channel through which the Order was presented. If the client’s Order is received immediately before closure of the respective execution venue, SEB may start to execute the Order on the next trading day.


Provided that it is unlikely to work to the overall disadvantage of its clients concerned, SEB may aggregate its client’s Orders with the Orders of other clients, or with Orders that SEB is presenting for its own account.

The purpose of such aggregation is to achieve the best possible result for the client through facilitating the handling of Order volumes and/or obtaining the best conditions on the market, however it does not give any guarantee that on certain occasions the aggregation may not work to the client’s disadvantage in relation to a particular Order.

SEB may execute the client’s Order or an Order presented against SEB’s own book aggregated with the Order of another client only, if the following conditions have been met:

a) It is unlikely that aggregation of the Orders and transactions is to the disadvantage of the client, for whom the Order is aggregated, and
b) It has been disclosed to each client, whose Order is being aggregated that the impact of aggregation may operate to the client’s disadvantage in relation to the particular Order.

If SEB has aggregated Orders presented against SEB’s own book with the Order of one or more clients, the related trades may not be allocated in a manner that would work to the client’s disadvantage The client and the bank will receive the same price when allocating an aggregated order, unless this is not possible due to specific conditions given by the client as regards the price.

If SEB aggregates a client’s Order with an Order presented for SEB’s own account and the aggregated Order is executed partially, the related trades must be allocated first to the client and only then to SEB.

Exceptional cases are the ones, where it is evident that without aggregating the clients’ Orders and Orders presented for SEB’s own account, it would not have been possible to execute the clients’ Orders on such favourable terms or it wouldn’t have been possible to execute the Orders at all. In this case SEB involves the trade executed for SEB’s own account in the allocation on a pro rata basis.

Where the bank aggregates a client’s order with other client orders, the combined trades will be allocated fairly between that client and the other parties whose interests have been aggregated. When allocating the combined trades of an aggregated order, clients will receive the same price, unless this is not possible due to specific conditions given by a client as regards the price. For aggregated orders that have only partially been filled, the combined trades will be allocated on pro rata basis between the clients.

If a decision concerning aggregation or allocation of a trade is  not in line with the rules stipulated in this Policy, the SEB Compliance Officer shall be notified thereof.

Before completion, all transactions in the SEB systems must always be associated with the underlying decisions or Orders of the transaction.

A transaction shall not be executed, if it is not clear on whose behalf the transaction is made. What matters is not whether the transacting person is aware of the persons benefiting from the transaction, but rather that these persons can be identified, if necessary. Disclosure of the data of these clients only after execution of the transaction by the management company (either within SEB or as an SEB client) is not considered a violation.

Orders of a larger size may be aggregated with other Orders (incl. with the Orders of other clients or Orders given for SEB’s own account) only, if at the given moment it is clear that such aggregation is not to the disadvantage of any relevant client, i.e. the client’s interests are not damaged by the time spent on the execution of their Order, completion of the transaction, achieved price or inherent costs.

SEB shall forward a limit Order of the client in ordinary volume (an Order, the execution price of which for the securities transaction to be concluded on the basis thereof must not be higher or lower than the price established by the Order) for securities, which are traded on a regulated market or on another execution venue, to the regulated market or execution venue without aggregation.

In case of aggregation decisions of Orders (incl. decisions on Orders presented for SEB’s own account) the time of the decision and details of the Orders to be aggregated shall be recorded.

If the decision on aggregating the client’s Order with other Orders has already been made, the aggregated Orders may not be separated anymore, except for, if this is clearly for the client’s benefit.

SEB commission fees may not be structured, grouped or their payment requested in a manner that would cause unequal situation between the execution venues.

The bank shall register and allocate orders that are executed on behalf of clients in a correct and timely manner.


In certain cases, whether as a result of trading suspensions, cancellation of transactions by the execution venue, disrupted markets, system failures or otherwise, SEB may decide that it is in a client’s best interests to execute or transmit its Order using means different to that normally used for the Order in question. In such cases, SEB will take all reasonable steps to achieve the best possible overall result for the client under the prevailing circumstances.

If the events referred to above result in suspension of trading, SEB will make reasonable efforts to contact the clients whose Orders have not yet been executed in Order to obtain additional instructions. If SEB is unable to obtain such instructions, it will take all actions that are to be in the best interest of the client, and the client will be bound by the result.

Where a market operator cancels or amends trades executed on its market, SEB and its clients will be bound by such steps, even if SEB has in the meantime confirmed that the transaction has been executed. SEB will take all actions to inform the client immediately of such circumstances, except if the circumstances do not permit such notification of the client.


SEB does not take any orders, does not submit them for execution or execute any orders off the premises of SEB.


This Policy is subject to change. The Policy, the execution venues, third party brokers and execution arrangements referred to therein, as well as the results they produce, will be reviewed periodically in order to ensure that they are likely to provide the best possible result for SEB’s clients. This will be done as circumstances dictate, and at least annually. Any changes to the Policy will be published on SEB’s website on Such changes and updates will take effect from the day following the day they are published on the website.


Conflicts of Interest

The Bank provides its clients with a wide range of financial services, comprising several types of business activities. However, the very range of this offering is such that potential conflicts of interests may arise from time to time. The conflicts of interests include situations where the interests of the Bank (incl. its management, board, staff, etc.) and the interests of its clients or the interests of different clients of the Bank may conflict. Furthermore, potential conflicts of interests can arise between different businesses within the Bank, as well as between the Bank and other units of the Skandinaviska Enskilda Banken AB Group. The Bank has carefully analysed the areas where such potential conflicts of interest can occur. They include, for example, the production of market analyses, offering of financial advice and corporate finance activities. This has resulted in specific measures designed to minimise the risk of conflicts of interests affecting the Bank's clients in practice.

These include:

  • ensuring that businesses between which conflicts of interests can arise are separated from each other and are not subject to inappropriate influence from other areas;
  • requiring potentially sensitive activities to be kept confidential;
  • adopting internal guidelines to ensure that staff (and their immediate family) cannot benefit personally from their employment at the expense of clients;
  • avoiding reporting lines and compensation arrangements which could disadvantage clients;
  • and, above all, requiring staff to handle clients' affairs at all times solely in the interests of the client, without taking into account any inappropriate factors representing the interests of others.

All of the above is covered in the internal rules of the Bank for conflicts of interests. The internal rules provide a detailed description of the various potential conflicts of interests, and set out how they will be handled in order to prevent them from having an adverse effect on clients' affairs. The aforementioned internal rules can be accessed here

Payments and other benefits
The Bank normally supplies services for a fee. The pricelist is available on the Bank’s website and in its offices.

In addition, the Bank has endorsed internal rules and procedures to regulate monetary incentives and inducements in the provision of investment services (e.g. the fees and charges for market entrance, intermediation and brokerage, as well as other monetary stimuli). The offering of inducements and acceptance of monetary benefits is subject to the fulfilment of certain conditions. It is important in this context that such inducements and monetary benefits are aimed at enhancing the quality of the services provided to the client and that such inducements and benefits do not undermine the interests of clients. Neither may such inducements or other monetary benefits be offered or accepted if this goes against the Bank’s duty of integrity, fairness and professionalism in business. If a person other than a client, or a representative of such person is being offered a monetary incentive or benefit in connection with a client’s business or if any such benefit is being accepted from such person (except if the benefit is a proper fee in exchange for a service), this must be disclosed to the client before the service will be supplied.

Upon request, clients will be provided with additional information in relation to fees relevant to their business with the Bank, or with the Bank's relevant internal rules in their entirety. The following is a brief description of fees related to certain investment products paid to the Bank by third persons or payable by the Bank.

Fund units
The Bank may intermediate funds managed by different management companies and the relevant management company pays the Bank a fee for the fund units sold. The aforementioned fee is generally calculated as follows:

  • a one-off fee upon the issue or redemption of fund units as a percentage of the amount invested in the fund units; or
  • the part of the management fee payable once a year; or
  • a combination of both of the aforementioned versions.

The amount of the fee receivable by the Bank and the payment procedure thereof shall be agreed on in a contract made between the Bank and the relevant management company. The compensation arrangement can vary between fund management companies and funds managed by the same company.

Furthermore, the Bank may attend, without charge, training events carried out by the management company, which enable the Bank to perform better sales of fund units. The units of funds managed by management companies belonging to the SEB Group may in certain cases also be sold by other financial institutions. In such case a fee may be paid to them according to the aforementioned manner.

Structured instruments
SEB may sell structured instruments which have not been issued by SEB, but by other issuers. In such instances the issuer pays the Bank a fee for the intermediation of structured instruments. The fee may be a percentage of the value of the instruments sold through the Bank. The amount of the fee and the calculation principles thereof may differ in case of different issuers or instruments of the same issuer. The Bank may also sell structured instruments issued by the Bank itself through third persons, for which the Bank shall also pay a fee to such person. Generally, this is a one-off fee according to the invested sum.

Bond and equity market
The Bank may receive fees from issuers of bonds or money market instruments for organisation of issues or execution of transactions of the secondary market or discharge of other duties. The fee has generally been expressed as:

  • a set fee; or
  • a variable fee according to the turnover of securities; or
  • a combination of the aforementioned versions.

The Bank may transfer, in part, the fee received from the client upon the receipt, forwarding or execution of transaction orders for securities to third persons, the service provided by whom is in the client's interests and increases the quality of the service provided (e.g. investment analysis). The fee payable is generally calculated as a percentage of the fee payable by the client.

Management of securities portfolio
The Bank may cooperate with certain portfolio managers, who perform their own or their clients' securities settlements in the Bank. On the basis of an agreement between the Bank and the provider of the portfolio management service the Bank and the relevant service provider may divide the fee payable by the client of the portfolio manager.

Recruitment and referral of clients
The bank may provide or receive compensation upon referral of a client from or to a third party. Such remuneration is normally calculated as a one-off compensation, an annual compensation in the form of a percentage of the assets under management, an annual compensation based on a share of paid commissions or a combination of these.


NB! The following description of financial instruments is of a general nature. The terms and conditions applying to individual financial instruments can vary, and investors should always take care to ensure that they investigate and are fully informed about the particular characteristics and risks of the instruments in which they invest. The bank does not assume any liability for damage that clients may incur if they make their investment decisions on the basis of only the following information and do not study the respective instruments more closely.

Regarding Securities in General
Securities (i.e. bonds, units of funds, custody certificates or other rights or obligations which are the subject of trading on financial instruments markets) normally yield a positive return in the form of a dividend (in the case of shares), or interest (in the case of bonds). In addition, the price (i.e. market value) of the security may appreciate and depreciate relative to its price / market valuation at the time when the investment was made. Hereinafter, the word "investment" is also used in the case of negative positions in securities (i.e. the "short" sale by an investor of a security which it does not own, but has borrowed).

The total return on an investment is the sum of dividends/interest rate payments and any change in the market value of the security. Derivative instruments, such as options, forwards, futures, etc., are issued for a variety of underlying assets, including shares, bonds, precious metals and currencies. Derivative instruments may be used to decrease the risk of an investment or to produce greater returns.

What every investor seeks is a positive return on an investment - that is, an investment that yields a profit, preferably as large as possible. But there is also a risk that the net return of an investment is negative, i.e. that the investment generates a loss. The risk of a loss varies with the security, as the prospect of a profit is usually correlated with the risk of a loss. The longer the duration of an investment, the greater the prospect of a profit and the risk of a loss. There are varying methods of investing in securities to minimise risks. It is usually considered safer not to invest solely in one or a few securities, but to instead diversify the investment across several or many financial instruments. These securities should then provide a dispersion of the risks, rather than producing a concentration of risks that may be realised simultaneously. When investing in securities listed in a foreign denomination, there is also a foreign exchange risk.

Investments in specific securities are associated with specific financial risks, as described in more detail at "Risks".

The risk is assumed by the client, who must therefore seek advice from its investment service provider or asset manager in relation to the properties, risks, terms and conditions applicable to specific investments. The client must also continuously monitor its investments in securities regardless of whether the client received individual investment advice before entering into the investment. Information required to monitor holdings of investments, such as prevailing market prices, are published in major newspapers, at various websites maintained by market operators, financial service companies and other public media. Furthermore, the client should, with its own best interests in mind, be prepared to take swift action, where necessary, to close positions which unexpectedly develop negatively, or to provide additional collateral for investments that have been financed by the use of loans if the collateral has depreciated in value.

The buying and selling of shares on regulated markets and other market venues constitutes a secondary market in the shares issued by a company. Efficient secondary markets, which are markets in which it is easy to find buyers and sellers and where bids and prices of concluded transactions are continuously published in an environment of open information, are also beneficial to the companies whose securities have been admitted for trading on regulated markets, since as a result it will be easier for them to issue new securities to raise new capital.

Different market venues
There are several kinds of market venues in which to buy and sell securities. Market venues are normally regulated markets, multilateral trading facilities (MTF) or systematic internalisers and where OTC-trading is provided with investment service companies; market makers or other liquidity guarantors or other persons who perform similar duties or functions with the aforementioned persons.

Regulated markets
Various securities can be traded on a regulated market. Strict requirements are imposed on companies admitted for trading on regulated markets with obligations that relate, among other things, to the size of owners' equity, owners, business history and financial disclosures of the company. A list of regulated markets is maintained by the European Commission and can be found at

Multilateral trading facility
A multilateral trading facility (MTF) may be described as a trading system that is provided by a regulated market or a financial service company. Generally, the requirements imposed on issuers of securities admitted for trading at an MTF are lower than the requirements imposed by regulated markets.

An MTF is often also called an alternative market, because it is an alternative to a regulated market, the latter being subject to far stricter requirements regarding admitting securities for trading, etc. In a multilateral trading facility non-concurrent or concurrent offers for trading in securities can be made and financial instruments can be traded between different persons on equal terms. The main difference between the facility and a regulated market (e.g. a stock exchange) is lower liquidity of the securities traded at the MTF in comparison with securities traded on a regulated market.

Systematic internalisers
A systematic internaliser is an investment service company that on a regular and systematic basis matches clients' orders outside a regulated market or an MTF by concluding transactions with clients on its own account.

A systematic internaliser must disclose its price quotation about liquid shares admitted for trading on a regulated market on a regular and constant basis at the usual trading time. A systematic internaliser must disclose to other market participants the volume, price and time of the transactions executed by it in an easily available manner.

The share price quotation contains the price the execution of which is mandatory for a systematic internaliser in the case of transactions that are not larger than the standard market volume of the class of share. The share price must indicate the conditions applicable with regard to the share on the market.

Classification of Investment Products

Bonds Structured Bonds Investment Funds Exchange Traded Funds (ETFs) Equities Derivatives


Investor compensation schemes

For the purpose of investor protection guarantee systems financed by market participants have been established on the initiative of the state or different market participants. The main goal thereof is to:

  • protect investors against risks which may threaten them upon investment in securities markets;
  • ensure regular and reliable functioning of the securities market;
  • Increase the reliability and stability of the financial sector;
  • preclude the possibility of inflicting losses on investors due to acts or omissions of the provider of investment services and to
  • alleviate the consequences of loss events, which have already taken place.

1. Investor protection arising from the Guarantee Fund Act

The Guarantee Fund is a legal person in public law founded under the Guarantee Fund Act (GFA) who commenced operation on 1 July 2002. The objective of the Fund is to guarantee protection of depositors, investors, unit-holders of mandatory pension funds and funds invested by the policyholders in the insurer's pension agreements.

In order to achieve its objective, the Fund:

  • collects single and quarterly contributions from credit institutions, investment institutions, management companies of mandatory pension funds and insurers concluding pension agreements; 
  • pursuant to the terms and conditions and in the extent and according to the procedure stipulated by law compensates:
    • deposits for depositors placed thereby with credit institutions;
    • investors for their investments and
    • any damage caused by a pension management company to unit-holders;
  • supports the transfer of the insurance portfolio of insurer's pension agreements to another insurer.

Out of the contributions received by the Guarantee Fund, the Fund will establish:

  • the Deposit Guarantee Sectoral Fund,
  • the Investor Protection Sectoral Fund,
  • the Pension Protection Sectoral Fund, and
  • the Annuity Protection Sectoral Fund and
  • the Resolution Sectoral Fund.

The specific procedure for guaranteeing and compensating deposits and investments as well as the categories of deposits and investments not subject to guarantees or compensation has been provided for in the GFA and legislation issued on the basis thereof.

The following is a brief summary of the main aspects of functioning of the Guarantee Fund. For further information about the activities of the Guarantee Fund contact the Fund (Roosikrantsi 2, 10119 Tallinn; phone 611 0730; e-mail ; SEB or its subsidiaries have made the required contributions to the respective sectoral funds.

The Deposit Guarantee Sectoral Fund is established out of the contributions of credit institutions and used in order to guarantee and compensate, according to the provisions of the GFA, 

  • for deposits of depositors of a credit institution established and received its activity license in Estonia and of the branches of this credit institution, established abroad.
  • the deposits of such an Estonian branch of a credit institution of a Contracting States of the European Economic Area or of an Estonian branch of a credit institution of another foreign country concerning the part, which is guaranteed under a protection scheme of such a foreign country in a smaller amount than the guaranteed rates, set out in GFA.

Deposits, with the interest thereon as of the date, on which the deposits become unavailable, are guaranteed and compensated for, but not more than in the amount of 100,000 euros per depositor in any one credit institution. Interest on a deposit is calculated:

  • on the basis of the rates provided for in the settlement or loan contract or,
  • in the absence of a written agreement, on the basis of the rates provided for in the standard depositing terms valid in the credit institution on the date on which the deposits become unavailable.

Compensation shall be paid by transfer to the bank account indicated by the depositor or, on the basis of an application of the depositor, in cash through one or several Estonian or foreign credit institutions specified in a resolution of the supervisory board of the Guarantee Fund.

The compensation is paid out in euros, in account currency or in the currency of the country of location. Based on the application of the depositor, the compensation can be paid also in the currency of the EU member state, which is the country of residence of the depositor. If the account currency was different from the payment currency of compensation, the European Central Bank daily rates as at the day the deposits become unavailable are used as exchange rate.

If the fee payable by a depositor for payment of compensation in cash or by a bank transfer is higher than or equal to the amount of compensation, the compensation shall not be paid. The fee chargeable for the payment of compensation may not be higher than the usual fee chargeable by a credit institution for similar services.

The payment of compensations shall be completed within 7 working days as of the date on which deposits become unavailable.

The Investor Protection Sectoral Fund is established out of the contributions of investment institutions. It isused in order to guarantee and compensate the investors, in accordance with the provisions of the GFA, for investments made through an investment institution registered in Estonia or the Estonian branch of a foreign investment institution.

Investment institutions are investment firms for the purposes of the Securities Market Act, credit institutions and management companies.

Investments are claims based on an agreement between the parties or on legislation, arising from which an investment institution is obliged to disburse to an investor money or transfer securities which are owed or which belong to the investor and which the investment institution has kept on the investor's account or disposed of with regard to the provision of investment services.

Investments are guaranteed and compensated for to the extent of their value as of the compensation date, but not more than in the amount of 20,000 euros per investor in any one investment institution.

The value of a foreign currency and securities nominated in a foreign currency is converted into euros on the basis of the foreign exchange reference rate of the European Central Bank as of the compensation date. Compensation is paid in money by a bank transfer to the account indicated by the investor.

An investment the owner of which has outstanding liabilities to the same investment institution shall not be compensated for out of the Sectoral Fund to the extent of such liabilities. Investments, which are subject to compensation under §§ 52 and 53 of the Estonian Central Register of Securities Act, which regulates the civil liability of the registrar of the Estonian Central Register of Securities and the account manager in compensating for damage, is not compensated for out of the Sectoral Fund.

The Pension Protection Sectoral Fund is established out of the contributions of pension management companies and used in order to compensate, in accordance with the terms and conditions and pursuant to the procedure provided for in the GFA, for the loss caused to the unitholders of a mandatory pension fund for which the unit-holders have not been compensated by the pension management company pursuant to §§ 32-36 of the Funded Pensions Act (FPA) by the due date established by the Supervision Authority.

Loss means loss for the purpose of subsection 32 (1) and (2) of the FPA, whereby the Financial Supervision Authority has ascertained that there has been a violation of the requirements provided by legislation or the rules of a pension fund and the violation has caused loss to the unit-holders of the pension fund.

The extent of the loss is determined on the basis of all the proprietary damage caused, including any loss of profit compared to the situation that would exist if such violation had not occurred and where the assets of the pension fund associated with the violation would have been invested similarly to the other assets of the pension fund.

A unit-holder is compensated in full for loss subject to compensation out of the Pension Protection Sectoral Fund in the amount of up to 10,000 euros per specific loss event. Any loss exceeding 10,000 euros per specific loss event of a unit-holder shall be compensated for to the extent of 90%.

The registrar of the Estonian Central Register of Securities shall, for the amount of compensation granted to a unit-holder, acquire for the unit-holder the maximum whole number of units of the pension fund to which the unit-holder makes mandatory funded pension contributions at the time of payment of the compensation.

If a unit-holder has entered into a pension agreement or if he/she has deceased, the units of the existing pension fund, whose units he/she acquired last shall be acquired for him/her. If all the pension funds, whose units the unit-holder has acquired, have been liquidated, the units of the pension fund specified by the unit-holder or their successor shall be acquired for the compensation.

The Annuity Protection Sectoral Fund is established out of the contributions of insurers and used in order to guarantee the performance of the liabilities under pension agreements to the extent provided for in the GFA, supporting the transfer of the pension agreement insurance portfolio of an insurer and an Estonian branch of an insurer of a Member State of the European Economic Area, except Estonia, to another insurer in the case of revocation of the activity licence, establishment of a special regime or declaration of bankruptcy of the insurer.

The support guarantees the contributions to pension under pension agreements (insurance contract for mandatory funded pension) for policyholders. The support amount shall be found as the difference between the technical provisions and financial liabilities according to pension agreements and the committed assets according to the insurance portfolio.

Resolution Sectoral Fund is formed of the contributions of credit institutions and investment firms specified in the Financial Crisis Prevention and Resolution Act and the resources of this sectoral fund are used only for the purpose of financing the crisis resolution tools and powers applicable to credit institutions and investment firms, their subsidiaries and branches specified in the Financial Crisis Prevention and Resolution Act.

2. Investor protection arising from the Rules of the Tallinn Stock Exchange

The guarantee of transactions (Stock Exchange Transactions) made on the NASDAQ Tallinn Stock Exchange (the Stock Exchange) are regulated by the Rules of the Stock Exchange. A guarantee fund has been established out of monetary contributions made by the members of the Stock Exchange for the purpose of securing Stock Exchange Transactions.

The Stock Exchange disposes of the funds of the guarantee fund if it becomes evident that a Stock Exchange Transaction cannot be realised due to insolvency of a member of the Stock Exchange. Insolvency includes initiation of bankruptcy proceedings, declaration of a moratorium or other similar proceedings which result in restrictions on disposal of the assets of a member of the Stock Exchange.

The Stock Exchange also has the right to use the funds of the guarantee fund if any other failure to realise a Stock Exchange Transaction would obviously jeopardise the regular functioning of the market. A member of the Stock Exchange is also responsible for ensuring that its client has sufficient funds to realise a Stock Exchange Transaction (securities in the case of a sales transaction and money in the case of a purchase transaction).

AS SEB Pank is a member of the Tallinn Stock Exchange and it has paid its contribution to the guarantee fund.

For further information about the guarantee fund of the Stock Exchange contact the Stock Exchange (Tartu mnt 2, 10145 Tallinn; phone 640 8800; tallinn(at);

3. Investor protection arising from the Estonian Central Register of Securities Act

According to subsection 53 (2) of the Estonian Central Register of Securities Act, an account administrator shall insure the liability arising from administration of accounts.

As a member of the group of Skandinaviska Enskilda Banken AB, AS SEB Pank is insured against possible damage and losses arising from illegal activities of bank employees or third parties or criminal attacks or bank employees' negligence related to office.


SEB and its subsidiaries provide a wide range of services. In addition to the usual banking services the aim of the bank is to provide its clients with the possibility to invest their assets with the help of investment and ancillary investment services of SEB.

Forwarding and Execution of Clients’ Transaction Orders
Securities may be traded both on the trading venues meant for such purpose (e.g. regulated or alternative markets) as well as on OTC markets. Generally, securities are traded through brokers, but clients may give orders both directly to the broker as well as through a client service assistant or Internet Bank. Depending on whether or not the broker who received a transaction order has access to the specific trading venue, the broker executes the client’s order itself or forwards it for execution to a broker who has access to the relevant market. Upon the execution and forwarding of orders, the bank follows the Best Execution Policy.

The terms and conditions of the securities account and transactions of the Bank and the transactions (incl. currency transactions) related to the trading with securities on the basis of a financial markets client agreement.

Contact data of the Markets department of SEB related to services provided on the basis of a financial markets client agreement

Clients who have concluded a Financial Markets Client Contract can use the following contact details for communicating with the bank.

Name Area Contact details
Kert Koppel
Capital Markets group
Trading in equities and bonds Phone 665 6832
Jaak Raivo
Capital Markets group
Trading in equities and bonds Phone: 665 7184
Bruno Palksaar
Markets Department
Derivative instruments and
exchange transactions
Phone 665 7187
Argo Suurkask
Markets Department
Derivative instruments and
exchange transactions
Phone 665 7792
Kristofer Vähi
Markets department
Derivative instruments Phone 665 7785

The Bank may also trade with different securities on its own account.

Management of Securities Portfolio
The Bank provides the securities portfolio management service only to clients of private banking, i.e. to clients the volume of assets invested by whom is larger than the average.

The services and contact data of private banking

Investment Advice
The bank’s investment advisors and client executives of Private Banking provide its clients with investment advice. The bank will give investment advice to clients if it has been explicitly agreed a relationship between the bank and the client or with specific transactions within it.

Each client to whom investment advice is given will be individually assessed at the time of the documentation of the agreement between the bank and client, in order to determine suitable investment services and products to match their investment objectives, risk profile, financial situation, knowledge, experience and other relevant factors. All investment advice given will be based on the information provided to the bank during this process, to be updated during the course of the client’s continued business relationship with the bank. It is therefore important that clients provide the bank with accurate information and notify the bank of any material changes which may affect the suitability and appropriateness of the client’s assigned category or any service or advice.

If you are interested in the SEB advisory services in order to find along with the experienced specialists of the Bank the most suitable solution for you, please register for counselling at

The terms and conditions of the investment advice of the Bank

Organisation of Offerings or Issues of Securities
SEB provides entrepreneurs with the service of organising the issue of securities with a view to raise financial resources from investors. The issue of securities is organised by the Markets department.

Important Additional Information
Upon using services provided by SEB and making transactions with investment products offered through SEB, the client must carefully examine the terms and conditions, properties and risks of the specific service or product in advance. In case of questions, the client should address a teller, a client service assistant or an investment adviser of the bank for explanations or ask for advice from their tax, financial or legal adviser. The client must also understand the following circumstances related to investment services and products:

  • investments and positions in securities are held at the client's own risk;
  • the yield on securities and investment products is not generally guaranteed and prices may both increase as well as decrease;
  • the client must carefully read and review the terms and conditions of the Bank applicable to investment services and products;
  • the client must carefully examine a transaction confirmation submitted regarding a transaction and promptly notify the Bank of any possible errors;
  • the client must continuously monitor its investments and positions held in securities;
  • the client must actively and at its own initiative take measures to minimise any potential risks of losses on investments in securities or other positions;
  • the rights relating to foreign securities or funds may differ subject to the law governing such financial instruments or funds;
  • in addition to any agreement between SEB and the client, a depository, settlement system or custodian used for the holding of the client's securities or funds may have a security interest, lien or right of set-off over such assets.

Protection of Assets

During the provision of investment and ancillary investment services clients deposit their securities and money on accounts administered by SEB or on accounts administered through SEB by other account administrators (i.e. on nominee accounts). In the depositing and safeguarding of clients’ assets SEB adheres to the requirements established in legislation and terms and conditions agreed on with the client. When providing the investment and ancillary investment services SEB follows the rules of protecting and safeguarding the clients' assets.

The terms and conditions of securities account and transactions.

You can review the terms and conditions of securities account also at a bank office.

Upon depositing the securities and conducting the transactions in foreign countries and through nominee accounts, the regulations, different technical solutions, rules established by local market participants and market practice in relevant countries must be taken into account.

Circumstances of depositing securities through account administrators of foreign countries.

Each client and investor must definitely take account of the related risks.

List of management companies keeping the funds of the UCITS

As at 4 October 2016, AS SEB Pank as the depository of UCITS, safekeeps the funds of UCITS through the following management companies:

  • Clearstream Banking S.A.
  • Ceskoslovenska Obchodni Banka, A.S.
  • Deutsche Bank AG
  • Bank Pekao S.A
  • Skandinaviska Enskilda Banken AB (publ)
  • Skandinaviska Enskilda Banken S.A.
  • Unicredit Tiriac Bank S.A.

Possible conflicts of interest are described here.


SEB classifies all clients to whom investment services are provided as retail clients, professional clients and eligible counterparties. The following explains the classification of clients and the meaning of the classification.

Client categories and principles of classification

The extent of investor protection is defined for each client by classifying the client in one of the following manners:

  • retail client;
  • professional client;
  • eligible counterparty.

Retail clients may not have sufficient knowledge, proficiency or experience to personally adequately evaluate the risks arising from investment. Consequently, retail clients are offered the highest level of investor protection. The obligation to provide information regarding SEB and the investment products and services and securities offered by it is the most extensive in the case of retail clients.

A retail client may request to be classified as a professional client if they believe that they have sufficient experience, knowledge and proficiency to make investment decisions themselves and to adequately assess the related risks. SEB is obliged to assess the given circumstances and, upon the assessment, SEB must take the nature of the planned trades or services into account. Furthermore, during the assessment at least two of the following conditions must have been met:

  1. the client has carried out on average at least 10 transactions of significant size on the securities market per quarter over the previous four quarters;
  2. the volume of the client's securities portfolio exceeds 500,000 euros;
  3. the client works or has worked for at least one year in the field of finance at a position which requires knowledge about investment in securities.

Professional clients are presumed to have more extensive knowledge and experience in investment products and services in order to understand the risks related to the investment services or transactions or transaction or product types. Furthermore, the amount of assets and the volume and number of transactions of professional clients is presumed to be higher when compared to retail clients. Therefore, professional clients are offered investor protection that to a certain degree is lower than the protection offered to retail clients.

Generally, a professional client is a legal person who meets at least two of the following conditions:

  • its balance sheet equals at least 20 million euros;
  • its net turnover equals at least 40 million euros;
  • its equity capital equals at least 2 million euros.

SEB also considers the following persons to be professional clients:

  • an Estonian or foreign credit institution, investment company, management company, investment fund, insurer or other financing institution subject to financial supervision;
  • the Republic of Estonia or a foreign country or a local or regional government unit or the central bank of Estonia or a foreign country;
  • an international organisation, incl. the International Monetary Fund, European Central Bank, European Investment Bank;
  • a person whose main business activity consists in dealing with goods or derivative instruments of goods on its own account;
  • a person who deals, on its own account, on financial futures, options or other derivative instruments markets and on money markets only in order to secure investments made on derivative instruments markets or conducts transactions on the account of participants in the aforementioned markets or forms prices for them and the execution of whose transactions is secured by persons organising settlement on the same markets.

The clients who do not correspond to the aforementioned conditions are generally considered to be retail clients by SEB, but under the conditions described above a retail client may, however, ask itself to be regarded as a professional client.

A professional client may request that it be treated as a retail client if according to the client they are not able to sufficiently assess or manage the risks relating to the services and trades. In such an event SEB does not presume in the case of such a client as high awareness of the securities market as in the case of a professional client. Professional clients are responsible for keeping SEB informed about any change which could affect their treatment as a professional client. If SEB becomes aware that the client treated as a professional client no longer meets the criteria set for professional clients, SEB shall apply the provisions of retail clients to the client according to the changed circumstances.

In the case of certain investment services (i.e. upon the receipt and forwarding of orders related to securities and upon the execution of orders on the client's behalf and account) SEB may treat certain clients as an eligible counterparty. In the case of such clients, investor protection arising from legislation is the lowest. Such clients are presumed to have competence equal to that of SEB. Consequently, SEB does not need to require from its clients information about their knowledge or experience related to their investment and ancillary investment services and about the aims and circumstances related to such services, or present information about the securities and the planned investment strategy or provide guidelines and warnings related to risks.

A client may also request to be regarded as a client belonging into a different category. If reclassification means that the extent of investor protection applicable to the client is reduced (e.g. when a retail client is reclassified as a professional client), SEB shall assess the aforementioned circumstances in the case of the client. However, if reclassification means an increase in investor protection (e.g. classification of a professional client as a retail client), then SEB will assess the risks and consequences of the reclassification for the Bank.

Retail clients may request to be treated as professional clients, and vice versa. Professional clients may request to be treated as eligible counterparties and eligible counterparties may request to be treated as professional clients or retail clients. An application for amendment of client classification must be submitted to the client service assistant.

Explanations about the rights that the clients may forfeit if they choose the client classification providing less investor protection has been provided here


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