1. Post

   Brexit and Dispute Resolution – How Can You Start Preparing Yourself Now?

   For the time being, the biggest impact of the decision of Britain to leave the EU has been increasing uncertainty. No one knows how the relationship between Britain and the EU will evolve, and forthcoming negotiations are likely to take years. However, business operations will not simply stop and wait for the end results of the negotiations, which is why it is important to be prepared already now for Britain's withdrawal from the EU, to the extent possible. Common Rules at Stake The EU's legislation facilitates cooperation between the Member States' courts on many occasions. EU regulations lay down the frameworks binding all Member States on the following questions, among other things: Upon Britain's withdrawal from the EU, the regulations specified above will not necessarily continue to be applicable to Britain. In addition, Britain's national legislation is expected to be amended in any case as a result of the withdrawal. It is also unclear what the significance of the case law given during the EU membership will be in Britain after the withdrawal. The prevailing uncertainty creates added challenges for dispute resolution as the time between the drafting of an agreement and the emergence of a dispute can be years, if not decades. In order to manage risks related to Brexit we recommend, for the time being, favouring arbitration and choosing the laws of Finland or another Member State as the law applied to the agreement. Two Clauses You Can Use to Reduce Risks Related to Brexit

   Published: 1.8.2016

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   MAR, the EU Market Abuse Directive: A Step Back for Finland

   Unfortunately, one-size-fits-all solutions are a bad fit for the differing situations in different Member States, and they don't always mean progress. One example of this is the EU's Market Abuse Regulation (596/2014), or the MAR for short, which has been a bane for listed companies and issuers of listed bonds this year. The MAR becomes binding starting on 3 July 2016. It replaces most of the current regulations on the ongoing disclosure obligation, insider matters and market abuse under the Finnish Securities Markets Act. This is a change that has to be taken seriously: the MAR also brings with it harsher sanctions for non-compliance. Switch from Public Insider Registers to Ongoing Disclosure The MAR replaces the current public and company-specific insider registers with non-public insider lists, which are opened on a project- or event-specific basis on inside information possessed by a company.  Starting from July, inside information has to be published as soon as possible: instead of a public registers automatically compiled from the book-entry system, in the future the publicity of trading will be implemented through stock exchange releases. In practice, this means that whenever a 'person discharging managerial responsibilities' in a company or a closely associated person of such a manager makes trades in that company's shares in excess of 5,000 euros in a year, that person must notify both the company and the Finnish Financial Supervisory Authority of the trades within three business days.  The company for its part has to publish a stock exchange release within the same three-day timeframe. The above will also apply to issuers of bonds.  Taken to a negative extreme, the disclosure obligation for managers and their closely associated persons could increase the number of stock exchange releases a company has to publish many times over. At the same time, the amount of useful public information on management holdings threatens to be reduced, as publicly available online registers of holdings are replaced by a flood of individual stock exchange releases. Major Discrepancies between Language Versions Each language version of an EU regulation is binding as such. However, the different language versions of the MAR suffer from discrepancies. One of the most obvious differences is whether entities in which a manager or manager's closely associated persons exercise influence are also considered that manager's closely related persons (Article 3(1)(26)).   The English version of the MAR requires control or otherwise substantially common economic interests with the person. The Finnish and Swedish versions on the other hand encompass all entities in which the person or his/her closely associated persons discharges managerial responsibilities, such as on the board of directors. Such entities would include not just companies, but foundations, registered associations and other legal persons. This would significantly increase the number of trades requiring stock exchange releases. The language versions are currently being assessed by the Council and Parliament, and the Finnish Financial Supervisory Authority has justifiably taken a time out until the situation is clarified. The Financial Supervisory Authority clearly stated (Finnish only) that it will not require the disclosure of trades by entities in which influence is exercised until corrections are made. In addition, we have noted a number of other discrepancies in our close review of the language versions of the regulation: Sloppy Regulation, Costly Consequences Finnish companies have generally handled their insider matters in an exemplary manner. The environment they operate is a major driver of diligence. The Finnish media and public are quick to pass judgement on companies for the smallest lapses in insider matters. It seems like public pressure is forcing us to take the MAR much more seriously than in other EU countries. The discrepancies and ambiguity in the contents of the regulation are intolerable in these circumstances, especially given the fact that they cannot be corrected on the national level as would be possible through the transposition of a directive. This makes the shift from public, automatically updated insider registers in Finland to the ambiguous and contradictory MAR world particularly dramatic.

   Published: 29.6.2016

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   The Evolution of a Lawyer’s Mobile Phone

   On the other hand, unless you take a good look at the past, you are not likely to understand how you ended up in the present or where the future is likely to be heading. So from a lawyer’s perspective, and coming from a firm with a mission embracing change, what has really changed? Late in 1997 when I graduated from law school at the University of Helsinki, I got my first mobile phone ever. It was a Nokia 6160. Back then mobile phones were just phones, and mine had no other connection to the law than that it was the perfect graduation gift. Today our lives are in our mobile phones. Even current laws, relevant case law and articles are only a few clicks away. Are Robots Taking over the Legal Profession?                                                What’s next then? Will all lawyers be replaced by artificial intelligence as some say? In 2013, Frey & Osborne’s conducted a study  on the future of employment asking how susceptible different jobs were to computerisation. The likeliness for attorneys was 3.5%, for judges 40.1 % and for legal assistants 94.5%. But what do these numbers really tell us? They show where there is most room for additional efficiency—and, yes, artificial intelligence. Research shows  that 70% of those who seek or need legal advice don’t get it when they need it or, for example, can’t reasonably afford it. This is unheard of for the new generation of digital natives growing up. Other surveys show that lawyers today still spend an average of over 30% of their time searching for data. This again is not acceptable in times of increased cost awareness and efficiency requirements. Supercharging Legal Reseach While many countries still have some legal restraints, such as bar rules, prohibiting legal advice given by non-lawyers, the trends discussed above are the key drivers behind the rise of new advanced tools in legal research, such as ROSS  and KELSEN . These new tools find relevant answers to legal questions by combining big data and machine learning technologies and learn from user ratings to improve the accuracy of the search results with every search. Another one, LEX MACHINA , mines litigation data, revealing insights and meaningful patterns in such data about judges, lawyers, parties and patents culled from millions of pages of IP litigation information. I am sure we will have an app for each of these on our mobile phones in no time. New Tools for New Times These developments are not limited to legal research, though. Contract drafting is also becoming more and more automated, enabling a much wider range of users to draft contracts themselves with the help of a smart interview conducted by automation software. The efficiencies from automation accrue beyond the drafting stage and could reach throughout the life cycle of a contract. During the midstream of a contract’s life, its obligations can be performed or renegotiated. Software can translate the legal form of a contract into human- and machine-readable (operationalisable) versions, thereby reducing the risk of an inadvertent breach or over-performance. Digitised contract documents can be efficiently stored and retrieved when changes in the legal or business environment call for adjustments or modification of the initial agreement. Information can also be extracted from stored documents to reveal patterns and risks in a company’s contract portfolio. Finally, standard and effectively modularised contracts are, all else being equal, less likely to give rise to disputes or to costly and uncertain litigation. Indeed, in the foreseeable future, one might even imagine the drafting of contracts in machine-readable language that will enable some type of automated dispute resolution and enforcement. Picture this: in-house lawyers will receive daily alerts on their mobile phones from a virtual service provider telling them which contracts are expiring or in need of renewal due to changes in their companies’ production. The claims will then be automatically filed for dispute resolution unless otherwise instructed or judgements forwarded for execution when lacking voluntary performance, and so on. I can only begin to imagine what possibilities augmented reality, for example, could bring to the world of contracts. Forging into the Future Digitalisation is a means for renewal. At the moment, our firm is adopting automated contract drafting and document assembly solutions. This will make our drafting processes as lean as possible, adding a great dose of both quality and efficiency to it. Automated document assembly limits the amount of manual work needed and the risk of drafting errors by transforming frequently used complex documents into intelligent templates. With a library of know-how and alternative clauses built into the templates, tailor-made documents can be drafted and negotiated much more quickly.  The possibilities for utilising document automation are numerous and only time will tell which paths it will take. If you want to learn more, please feel free to give me a call. After all, my mobile phone still works as a phone as well.

   Published: 15.6.2016

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   Harmonising Europe's Trade Secrets – New Directive Approved

   The new directive will bring the adoption of a shared definition of trade secrets across the EU. In short, trade secrets are secret information that the holder of the information takes steps to keep secret and that has commercial value because it is secret.  Lawful vs Unlawful – Drawing a Line The directive defines when the acquisition, disclosure or use of trade secrets is unlawful, and when such actions are lawful from the perspective of the protection of trade secrets. Independent discovery or creation is always lawful , as is, for example, the acquisition of trade secrets through observation, study, disassembly or testing of a product or object that has been made available to the public ( reverse engineering ). The acquisition of trade secrets is considered to be unlawful , for example, when information on a trade secret has been disclosed in breach of a confidentiality agreement or the person receiving the trade secret knew or ought to have known that the trade secret had been obtained without the consent of the holder of the trade secret.  The directive also obligates Member States to enact civil law remedies against infringements of trade secrets. For example, courts can limit the number of persons entitled to participate in hearings during a trial.  The directive also provides for the precautionary and corrective measures available to courts as well as on the courts' right to award damages. National Law Drafting Can Begin – An Opportunity to Unify Fragmented Regulation In Finland, the provisions on trade secrets are currently spread across several acts. Finland has two years from the publication of the new directive to adopt it, in other words, until the end of 2018. Given how fragmented the Finnish provisions currently are, now would be a good time to follow Sweden's example and enact an entirely new act on the protection of trade secrets rather than just bringing our current legislation into line with the directive. A new act would probably also make it easier to unify the legal concept of trade secrets. As things currently stand, the different acts use different concepts, which are trade secrets, business or professional secrets, and business secrets. Case law has, as a general rule, held the material contents of these concepts to be the same. Despite this fragmentation, the level of protection enjoyed by trade secrets in Finland is reasonably good. The courts mainly hear infringements of trade secrets as criminal matters, which enables the authorities to efficiently gather evidence of infringements during the preliminary investigation. It is vital that the transposition of the directive not even indirectly weaken the protection afforded by the Criminal Code. Predicting the Protection of Trade Secrets Abroad Made Easier There is not much in the way of international legislation on trade secrets. This being the case, the provisions of the new directive will likely benefit Finnish companies that operate abroad. With the harmonisation of the concept and level of protection for trade secrets in the EU, companies will be better able to predict the legal remedies available to them in different Member States in the event their trade secrets are infringed. 

   Published: 2.6.2016

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   Are the Happy Days Coming to an End in the Land of Milk and Honey?

   MD de Swardt's thoughts raised a lot of questions and comments in the audience. This is not surprising considering that corruption and bribery have a global price tag of 5% of global GDP, which equals USD 2.6 trillion. Corruption is, indeed, a concern to all companies, as 35% of the occupational fraud cases derive from corrupt activities. Thus, it is clear that corrupt activities cost money and cause unpredictability and inequality. It is equally evident that we in Finland need to continue our race to keep up the reputation capital we have gained over the years as the least corrupt nation and to add our voice to the battle against corruption and bribery.

   Published: 27.5.2016

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   What Is State Aid? – Commission Provides Specifics

   State Aid Rules Promote Equal Conditions for Competition The purpose of state aid regulation is to ensure that companies operating in the EU's common market have equal operating conditions and to prevent preferential treatment by individual Member States of companies established in that Member State. The Treaty on the Functioning of the European Union (TFEU) prohibits a benefit that All of the above criteria must be met in order for aid to be considered a violation of the EU's state aid rules. The notice clarifies when a public benefit granted to a company can be considered to meet each of the above criteria. The notice also takes a position on the assessment of certain forms of aid, such as tax benefits and infrastructure financing. The notice collects the Court of Justice's earlier case law and it replaces the Commission's previous instructions on direct taxation and the sale of public land and buildings.    Social Security and Health Care Services as Economic Activity The Commission's notice evaluates the notion of aid in several different sectors. From the perspective of Finland's social welfare and health care reform, it is worth noting that the Commission has compiled the case law of the EU courts concerning, for example, what is meant by an undertaking or economic activity with respect to social welfare and health care services. The Commission notice takes a position on what kinds of health care or social welfare operations are in accordance with what is called the solidarity principle and, thus, outside the scope of EU state aid regulation, and what kinds of operations are market-based. The notice also directly acknowledges that health care is organised in very different ways in different Member States. It is safe to assume that the issues brought up in the notice will be read carefully in connection with Finland's social welfare and health care reform. They are also closely linked to the debate surrounding competition neutrality between public and private actors. Fully Local Aid is not EU State Aid The EU's state aid rules are not applicable to aid provided to fully local operations, provide certain conditions are met. Such aid does not affect trade between Member States. According to the Commission, this category of aid includes funding to sports and leisure facilities and cultural events serving predominantly a local audience and that are, thus, unlikely to attract customers from other Member States. Thus, the notice clarifies the types of aid that the Commission does not consider to affect trade between Member States. The Commission has no jurisdiction to assess or reclaim aid that does not fulfil all of the criteria of state aid. In-House Activities Can also be Economic Activities that Must be Incorporated The Commission's notice also takes a clear stand that in-house activities can be considered economic activities subject to the EU's state aid rules. This can be the case, for example, when an in-house unit provides services internally, but also offers the same services to other customers in exchange for payment. Given that the Local Government Act contains exceptions to the corporatisation obligation normally applied in such situations, it may be necessary to re-evaluate the Local Government Act. Always Evaluate State Aid on a Case-by-Case Basis Despite the clarity brought by the Commission's notice, the applicability of state aid rules is something that should always be carried out on a case-by-case basis and preferably in writing. If the Commission subsequently finds a granted benefit to be in violation of the EU's state aid rules, the benefit can be reclaimed from the recipient with interest during ten years after being granted.

   Published: 24.5.2016

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   Legal Transplants Part III: Fitness for Purpose

   Fitness for Purpose Warranties Fitness for purpose warranties and representations are frequently discussed in the context of international supply and construction contracts, both under English law and Finnish law. Fitness for purpose warranties mean, in general, that the contractor or supplier guarantees that when completed, the end product will be fit for its intended purpose. In Finnish, a direct translation is that the end product ‘ soveltuu käyttötarkoitukseensa’ .   A UK Perspective Under English law, fitness for purpose warranties are considered problematic, since they impose on a party a high standard of guaranteeing a certain outcome. A main root of the problem under UK law seems to be the higher standard of care that the warranty imposes on the guaranteeing party as opposed to the standard of care that otherwise would apply. As described in this article, the requirement of a higher standard of care can also cause problems from the professional indemnity insurance perspective. This may be one of the reasons that any fitness for purpose warranty is usually preceded by lengthy negotiations and may also involve a higher contract price for the works or supply in question. Fitness for Purpose Warranties under Finnish Law As I explained in my previous post  on endeavours clauses, international contracts that are governed by Finnish law are quite standardly written in English. However, there is no established independent meaning for the concept of ‘fitness for purpose’ under Finnish law, nor is there any exact equivalent for the concept in Finnish jurisprudence. Under Finnish law, the phrase would generally be given its natural meaning – the party giving the warranty guarantees that the end product will be suitable for its intended purpose. On the one hand, fitness for purpose under Finnish law comprises a contractual obligation like any other, and it may be explicitly stated in or implied by the contract. The essential question in general is the existence of (and showing) the alleged breach of contract or lack of the same. Under Finnish law, ultimately, the question boils down to (1) whether or not the end product needs to be fit for purpose in the first place and, if so, (2) whether it in fact is fit for its purpose. On the other hand, in case of warranties , under Finnish law, the burden of proof is generally reversed as opposed to what it would be in case of a ‘normal’ contractual obligation. This means that in case of a claim under a fitness for purpose guarantee, under Finnish law, it is up to the contractor to show that the product is not defective if he wants to avoid liability. Usually, this requires showing an alternative cause for the alleged defect that the Contractor is not liable for. Concluding Remarks Fitness for purpose warranties are a very interesting example of the interfaces between different jurisdictions. The possibility of different interpretations is of particular importance to note with regard to fitness for purpose warranties, as the lengthy negotiations and potentially higher contract price involved can often lead to excess cost and prolonged negotiations. To avoid this, all parties should investigate the actual meaning of the phrase under the applicable law – and ensure that it is understood in the same way by all parties – before entering into negotiations under a foreign law or with parties from different jurisdictions. This also decreases the risk of disputes later on as to what de facto was meant by the wording. For common law discussion, see the following articles: Simmons & Simmons: Fitness for Purpose in English construction contracts Simmons & Simmons: Fitness for Purpose, Michael Polling Speaking Notes  

   Published: 19.5.2016

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   General Counsel March to the Front Line of Corporate Strategy

   Legal 500 recently interviewed 4700 European general counsel and legal directors for their Client Intelligence Report. The report is good reading for anyone interested in taking the pulse of the general counsel profession. Top 3 Challenges Facing European General Counsel Today European general counsel and legal directors identified three challenges above all else: The research further showed that 86.7% of the European respondents stated that the legal team had deepened its interaction with the business in the last 12 months. With the above challenges at hand, this is a must. With the current regulatory tsunami—where just keeping track of all the abbreviations, such as SDGs, BEPS, MIFID, MAR or FATCA is already a challenge—showing no sign of abating, the role of the in-house lawyer today has rapidly evolved to become a key strategic ally of the company. In-house lawyers need to be more proactive: it is not enough to be aware of current regulation, as companies need to be prepared for the challenges of tomorrow. Those in-house lawyers who are able to not only identify the risks, but also the business opportunities that may be hidden in upcoming regulation, can help their companies to align their strategy and even find significant competitive advantages.  This new role is also confirmed by the Legal 500 research, which shows that general counsel see themselves today primarily as enablers aligned to business strategy.   Nordic Trends While all of this is very much in line with what we hear when talking to Nordic general counsel and legal directors, there is another clear trend among Nordic lawyers. The research showed that they have often become responsible for functions other than purely legal one within the past 12 months. Most have taken on responsibilities in compliance, governance, enterprise risk management and company secretarial work. The difficult global economic environment since 2008 has put pressure on many Nordic companies. For legal teams, this has meant that they have had to shift increasing amounts of legal work from their outside counsel to be done in-house and have also had to take on additional tasks. GC Powerlist 2016 Nominations Are Now Open It has always been difficult for general counsel to demonstrate the value of their legal teams. How do you quantify risks avoided or costs mitigated? While it is still nigh impossible to put a euro figure on a legal department’s value, general counsel and legal directors, having now marched to the front line of corporate strategy, may finally not have to file much more evidence of their value. As the challenges for general counsel and legal directors are becoming increasingly complex and their work more business critical, we are very pleased that Legal500 is now providing the opportunity to recognise people who are genuinely the forerunners in their profession. Last year was the first time general counsel and legal directors were ranked in the Nordics, and we were truly proud to see four of our former colleagues among the people ranked in Finland! The GC Powerlist 2016 is now looking for Finnish corporate counsel who have been instrumental in: As the official partner of the GC Powerlist 2016 in Finland, we encourage everyone to actively participate in the nomination process, which is open at until end of May . And of course, it goes without saying that we hope to see many of the skilled Finnish general counsel we know ranked this year! 

   Published: 9.5.2016

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   Concurrent Delays in International Construction Projects – a Finnish Law Point of View

   Concurrent Delay – The Phenomenon Delays in general are a tricky business. As opposed to other types of contractual changes, such as variations, delays always imply negative consequences. These consequences are imposed on either the employer or the contractor of the project, depending on which is responsible for causing the delay. It is safe to say that neither party welcomes these consequences with open arms, but will rather try to avoid them at all cost. This being the case, delays usually carry the risk of conflict with them. The risk of conflict tends to increase in the event of concurrent delays . A concurrent delay means a delay that has been caused by two or more events or circumstances at the same time. Even without one of these events, the delay would still have materialised. The problem with concurrent delay arises if both the employer and the contractor are each (at least partially) responsible for one of the events causing delay.  An example of this would be a scenario where (1) the employer delays the review process of critical design documents (or delivery process of the same, depending on the type of project) and, meanwhile, (2) the contractor performs repairs on deficiently performed works, whilst (3) both of these actions affect the critical path of the project and delay its completion,  events or circumstances at the same time. Even without one of these events, the delay would still have materialised. The problem with concurrent delay arises if both the employer and the contractor are each (at least partially) responsible for one of the events causing delay. Does the contractor get an extension of time for the concurrent part of the delay despite the fact that, even without the employer’s delay, the project would have suffered an equal delay that the contractor is responsible for? Concurrent Delays under English and Finnish Law Unless the construction contract specifically addresses concurrent delays, the issue is subject to contractual interpretation. Under common law, there are at least two alternative approaches for handling concurrency (see link below): the ‘Malmaison Approach’ leans towards the contractor being granted an extension of time, whereas the  ‘Apportionment Approach’ implies that the responsibility for the delay could be apportioned between the two causes. English courts have generally adopted the Malmaison Approach, and so under English law, unless otherwise agreed in the contract, the contractor would be granted an extension of time despite concurrency. Under Finnish law, ultimately, the effect of concurrency will depend on the contract. The problem is that the wording can be very ambiguous as to concurrency. If the contract states that the Contractor shall be entitled to an extension of time if and to the extent that completion of the works is or will be delayed by acts of the Employer , the relevant question is has the completion in fact been delayed by the acts of the Employer considering that the same delay would have materialised independent of the Employer’s delay. Practical Considerations It is worth noting that ‘real’ concurrent delays are, in fact, quite rare. Sometimes, events only seem concurrent, because the programme (detailed schedule of the works) is not sufficient for verifying the actual critical path and the impact of each delay event on said critical path. This is important to keep in mind, since after all, in most large scale projects, it is not the delay as such that entitles the contractor to an extension of time; only delays to the completion of the project are relevant in this context. In these circumstances, the question of concurrency could be avoided by both parties paying sufficient attention to drafting the programme initially and then keeping it up to date during the project execution. It may show that only one of the delays affected completion. Concluding Remarks Since delays in general tend to be a rather volatile topic, there is really no magic wording which would eliminate all risk of disputes relating to delays in a construction project. A good starting point, however, is to specify in the contract – and, importantly, to do so unambiguously – how concurrent delays are to be resolved, along with drafting a sufficiently detailed programme and keeping it mutually up to date at all times. The programme should show the current critical path at any given time, all dependencies between the various phases of execution (also for those phases that are not on the critical path at that particular time), and the float included in the programme. This way, upon each delay causing event, the programme can be updated without unnecessary argumentation as to, for instance, the alternative chain of dependencies that form the new critical path as a result of the delay. For common law discussion, see e.g.: http://www.elexica.com/en/legal-topics/construction/16-concurrent-delays-in-construction-projects  

   Published: 14.4.2016

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    Crowdfunding Gets Ground Rules

    The Finnish government issued its proposal for a crowd funding act on 7 April. Small- and medium-sized companies will have an easier time getting financing with more sources of money available. Lending money to a company directly without intermediaries offers the potential for good returns with reasonable risk. Buying shares in a start-up allows anyone to help very early stage companies grow. Following the entry into force of the new act, crowdfunding platforms will no longer need an investment service company permit even if the financing instruments being brokered are transferrable securities. This is a long-awaited act in the field. It clarifies the ambiguous situation that was created when the Finnish Financial Supervisory Authority changed its interpretation of the law in the summer of 2014. Small financial companies, fintech start-ups, have faced the challenge of playing a game with fuzzy rules and difficult to predict referee calls. Now the rules are being clarified and the referee’s room for interpretation is narrowing. Crowdfunding brokers will no longer have to join the Investors’ Compensation Fund, and the capital requirements relating to investment service legislation have been dropped to a sensible level. A light registration process and equal rules across the industry also improve investor protection. Fly-by-night players can be kicked off the field if need be. The New Act: Restriction or Opportunity? The most significant part of the new act is not the result, but the essential—and hopefully increasingly common—shift in the paradigm of the traditional legislative process that it represents. First and most important of all, the crowdfunding act is the first national legislative project relating to economic competitiveness in which Finland is blazing a trail rather than trailing behind as usual. For once, EU level regulations were not looked at with fear, but were interpreted with courage and objectivity and in accordance with the principle of proportionality. This lead to an economically efficient result without violated the mandatory obligations set by the directives (MiFID). Second, the legislative process emphasised genuine interaction to an exceptional degree. The actors and interest groups active in the industry were not just heard formally, there was a genuine desire to understand their needs and desires. Thanks to the high-quality of preparation, the opposing interests of market freedom and investor protection have been balanced in the new legislation. There was also another benefit to the process: the discussions held prior to enactment strengthen the approval of the new act. Under the rule of law, it is not enough that the result is justified, the process also has to be legitimate. Whether we like it or not, in a market economy, a welfare state can only be maintained by ensuring that the economy is efficient. This new act is a good tool provided that we have the skill and courage to use it properly. The open-minded approach that the Ministry of Finance took to drafting this legislation is just what the sputtering Finnish economy needs. Legislation doesn’t always have to create restrictions, it can also create opportunities. Finland Leading the Way Finland’s trailblazing attitude will likely lead to alliances being formed between small crowdfunding platforms and finance giants over the coming year. These kinds of alliances will turn the small vibrations of better allocation of resources into a pounding base beat, which will help energise all of society. One can only hope that the parliamentary hearing of the crowdfunding act will also lead to Parliament enacting the fundraising act toppled during the term of the previous government. The arguments presented for opposing the law seem objectively strange—perhaps strong lobbying had something to do with it. The fact of the matter is that crowdsourcing is something that needs to be harnessed not only in investing, but also in charity. Offering help to those in need should not be something requiring extensive authority processes. The threshold between those in need of aid and those in a position to offer it must be lowered. New electronic distribution channels and operating models in both investing and charity are an opportunity, not a threat. The need for help is now stronger than ever due to the eroding tax base and migration.

    Published: 11.4.2016