The Financial Supervisory Authority (Fiva) has concluded its inspection initiated on 25 October 2024 on the valuation of funds in special common funds. One of the funds under review was OP-Rental Yield special common fund managed by OP Fund Management Company.
Fiva's observations concerned deficiencies in OP-Rental Yield's valuation process, while Fiva did not evaluate the actual value of individual assets owned by the special common fund. In its inspection, Fiva found there was room for improvement in how the reviewing of information concerning the valuation process of property investments was organised.
"The property investments of OP-Rental Yield special common fund are valued at fair value by an external property valuer approved by Finland Chamber of Commerce. The valuation is carried out quarterly applying good property valuation practices," says Juha Takala, CEO of OP Fund Management Company.
In its inspection, Fiva found two areas of improvement at the stage of the valuation process in which information provided by the property valuer is reviewed. The first observation had to do with the role of the analyst in the special common fund's portfolio management in the inspection stage, while the other observation concerned OP Fund Management Company's own inspection of valuation reports produced by external property valuers.
"We always comply with regulations, and take both of these observations made by the authority seriously. In the inspection stage of the valuation process we ensure the correctness of the property valuer's input data, such as floor areas and number of apartments. We have already carried out the majority of the corrective measures and will comply with all remaining to carry out the valuation process according to feedback from the authorities. We will also strengthen resources in OP Fund Management Company's own valuation function," says Juha Takala.
Media inquiries:
OP Financial Group Communications, tel. 010 252 8719, viestinta@op.fi