The Financial Supervisory Authority (FIN-FSA) will gradually adopt a new set of regulations and guidelines, which will replace the current sets of regulations and guidelines for the financial and insurance sectors. The reform will take place gradually, with preparatory work taking account of pending national and EU legislative changes. The reform is scheduled for completion by the end of 2013.
The key principles of the reform are:
- The set of regulations and guidelines will be divided into subject areas, but individual regulations and guidelines will take account, if necessary, of institution-specific requirements and differences between small and large market participants.
- Binding regulations and recommendatory guidelines concerning the same matter will be issued in the same document, but as clearly distinguishable elements. If necessary, examples and instructions for application will be provided.
- The regulations and guidelines will contain references, where necessary, to the relevant national and EU legislation and the guidelines and recommendations issued by the European supervisory authorities (EBA, EIOPA and ESMA). Of these guidelines and recommendations, FIN-FSA may also issue separate guidelines of its own, where necessary.
The new FIN-FSA set of regulations and guidelines is composed of the following main sections:
- Commencement of activities
- the section includes supervised entities’ authorisations, registrations and notifications
- Organisation of supervised entities’ operations
- the section includes organisation of supervised entities’ internal governance, internal control and measures regarding prevention of money laundering
- Risk management
- the section deals with supervised entities’ risk management ja reporting
- Accounting, financial statements and management report
- the section deals with supervised entities’ accounting, financial statements and management report
- Capital adequacy/solvency and technical provisions and related coverage
- the section deals with supervised entities’ capital adequacy/solvency and technical provisions
- Code of conduct
- the section deals with supervised entities’ marketing, conduct of business in customer relationships and customer contracts
- Operation of securities markets
- the section deals with issues related to securities markets, such as prospectuses, securities issuers’ disclosure obligation, the obligation to disclose major holdings, insider registers and transaction reporting
- Miscellaneous regulations and guidelines
- the section comprises regulations and guidelines that do not belong under any other section, such as regulations and guidelines on unemployment funds
New set of regulations by main sections