Statements and guidelines

Principles of international cooperation

The Financial Supervisory Authority (FIN-FSA) belongs to the European System of Financial Supervision, which consists of three supervisory authorities: the European Banking Authority (EBA), the European Securities and Markets Authority (ESMA) and the European Insurance and Occupational Pensions Authority (EIOPA). The European Systemic Risk Board (ESRB), which operates in connection with the European Central Bank (ECB), and national supervisory authorities also belong to the system. In addition, the FIN-FSA engages in cooperation selectively through other international forums.

The FIN-FSA is also a member of the European Single Banking Supervision Mechanism (SSM). The SSM comprises the ECB and the national supervisory authorities of the participating Member States. In addition, the FIN-FSA participates in the activities of the European Anti-Money Laundering Authority (AMLA).

The international cooperation of the FIN-FSA covers regulatory and supervisory cooperation. The obligation to cooperate is laid down in the Act on the Financial Supervisory Authority1. In addition, the FIN-FSA enters into memoranda of understanding2 with other supervisors.

These memoranda describe the principles and objectives of international cooperation, as adopted by the FIN-FSA Board3. International supervisory cooperation and regulatory preparation are carried out in accordance with strategic objectives and taking operational priorities into account.

Objectives and approaches

In international cooperation, the FIN-FSA’s objectives are

  • to identify risks threatening Finland’s financial markets and initiate preventive supervisory measures
  • to promote effective and consistent supervision in the EU
  • to exert influence to ensure that the need for regulation is critically assessed and that it is appropriate and proportionate with regard to the EU’s and Finland’s financial markets
  • to promote the development of the joint use and analysis of supervisory information and data within the European Supervisory Authorities
  • to promote the development of common supervisory methods and systems and consistent supervisory practices within the European Supervisory Authorities
  • to utilise European good practices and know-how to promote the quality and effectiveness of the FIN-FSA’s supervisory work.

In international cooperation, the FIN-FSA adopts the following approaches:

  • risk-based, consistent and selective influence
  • transparency in the preparation of international matters with regard to ministries and stakeholders
  • cooperation based on a constructive and solution-oriented attitude.

Notification

The Director General notifies the FIN-FSA Board of issues arising in international cooperation and brings to the attention of the Board issues of wide-ranging and fundamental importance. In particular, the Director General notifies the Board when the position of the FIN-FSA differs from the official position of Finland.

In international regulatory cooperation, the FIN-FSA ensures the transparent flow of information between domestic authorities (particularly the Ministry of Finance, the Ministry of Social Affairs and Health, and the Bank of Finland). In addition, the FIN-FSA notifies stakeholders, within the framework of confidentiality provisions, about pending preparation of a statute if, in the view of the FIN-FSA, the statute will have a material effect on the activities of stakeholders.

To the extent permitted by confidentiality provisions, the FIN-FSA notifies the industry, in accordance with the FIN-FSA’s communications strategy, particularly about issues dealt with in the EU’s network of supervisors.

Participation

The FIN-FSA Board appoints the FIN-FSA’s representative on the Supervisory Board of the SSM. The Director General or a person nominated on the proposal of the Director General represents the FIN-FSA in other international bodies.

Participation in the work of a committee or working group is decided in accordance with the procedure agreed in the FIN-FSA. When considering participation, the way the participation promotes the FIN-FSA’s supervisory objectives and the implementation of its strategy is taken into account. A person responsible for the work is appointed. This person handles notifications on the progress of the work and outlines the positions to be presented concerning the matter within the FIN-FSA.

Independence

Under the SSM Regulation4, the members of the Board of Supervisors shall act independently and objectively in the interest of the Union as a whole and shall neither seek nor take instructions from the institutions or bodies of the Union, from any government of a Member State or from any other public or private body. A corresponding requirement for independence is laid down in regulations on the European Supervisory Authorities for the members of the Board of Supervisors (BoS).

1 Act on the Financial Supervisory Authority (878/2008), section 3.3

2 Memoranda of understanding relate to international supervisory cooperation, and their objective is to clarify and enhance supervision. The conclusion of memoranda of understanding is provided for in more detail in section 67 of the Act on the Financial Supervisory Authority.
In addition, EU legislation may require the establishment of colleges of supervisors, in which the FIN-FSA participates when necessary.

3 Act on the Financial Supervisory Authority (878/2008), section 10.1

4 Council Regulation (EU) No 1024/2013 of 15 October 2013 conferring specific tasks on the European Central Bank concerning policies relating to the prudential supervision of credit institutions.