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Risk management and compliance

The fund, asset management and investment services activities of Titanium are subject to a licence in Finland and are closely supervised by the Finnish Financial Supervisory Authority. According to the regulations concerning the company’s business operations, the company must have adequate internal control and adequate risk management systems for its operations.


Titanium’s Board of Directors is responsible for the effective and appropriate implementation of internal controls and the organisation of appropriate and effective risk management. Risk management must take into account all of the company’s business operations and identify the material risks related to them. The Board of Directors is also responsible for the internal guidelines for risk management, such as the principles, being in place and approved as operating guidelines.


The task of the Compliance function is to ensure compliance with legislation, instructions and regulations issued by the authorities and the company’s own internal instructions in all of the company’s operations. In this regard, the Compliance Officer ensures that Titanium’s risk management arrangements comply with the regulations in force at the time and that risk management tasks are adequately managed in the company. The Compliance function prepares a comprehensive report on risk management activities and observations at least once a year. In particular, the report mentions the measures taken to correct any deficiencies.


The purpose of internal auditing is to ensure that the company’s operations comply with the set objectives, and operating principles as well as the industry rules and regulations that regulate the company’s operational activities and the organisation of administration, and are generally lawful. Through its auditing activities, internal auditing provides Titanium’s senior management with the information necessary for decision-making and monitoring and aims to prevent non-compliance, errors and misconduct. Internal audit provides audit reports on its operations to the Board of Directors and, at least annually, a report on its operations.


The company reports on the most significant risks in its financial statements and half-yearly reports. The risks related to Titanium’s business and operating environment are presented in the prospectus published in connection with the First North listing on 21 September 2017.


Compliance function

The task of the Compliance function is to ensure compliance with legislation, instructions and regulations issued by authorities, market self-regulation and the company’s internal principles and instructions in force at any given time in all of the company’s operations. In carrying out this task, the Compliance Officer shall, among other things, keep the company’s management aware of changes in the regulations governing the company’s operations and their impacts on the company’s operations, train the personnel on changes in the regulations and their effects on the company’s internal instructions, advise the company’s personnel on the application of the regulations in their work and carry out inspections to monitor compliance with the regulations. The Compliance function reports a comprehensive summary of its operations and observations made in the company with regard to all of the company’s business operations to the company’s Board of Directors at least annually.