FIN-FSA imposes an administrative fine for a failure to comply with or violation of the provisions in section 38 of the Act on the Financial Supervisory Authority. However, FIN-FSA may decide not to impose an administrative fine, subject to fulfilment of the conditions of section 42 of the Act.
The administrative fine payable by a legal person is EUR 5,000–100,000, and that payable by a natural person EUR 500–10,000. The size of an administrative fine is based on a comprehensive assessment, which takes into account the nature, scope and duration of the failure or violation.
FIN-FSA has, on its website, disclosed the principles to be taken into account in the comprehensive assessment of an administrative fine. In connection with the adoption of the principles, FIN-FSA abolished its indicative table of administrative fines.
The administrative fine is payable to the State.
If the act or omission is particularly reprehensible, FIN-FSA may impose a penalty payment instead of an administrative fine. An administrative fine may be imposed, provided that the matter, after comprehensive assessment, does not warrant more severe action.
According to section 39 of the Act on the Financial Supervisory Authority, FIN-FSA issues a public warning to a supervised entity or other financial market participant for violations that are not subject to an administrative fine or a penalty payment. In addition, a public warning is issued if the supervised entity's conduct is in violation of the terms of its authorisation or the rules governing its operations. However, FIN-FSA may decide not to issue a public warning, subject to fulfilment of the conditions of section 42 of the Act.
A public warning may be issued, provided that the matter, after comprehensive assessment, does not warrant more severe action.
FIN-FSA imposes a penalty payment for a failure to comply with or violation of the provisions of section 40 of the Act on the Financial Supervisory Authority.
According to section 42 of the Act on the Financial Supervisory Authority, FIN-FSA may issue a public warning instead of imposing a penalty payment if the erroneous practice is considered negligible or the issuance of a penalty payment is deemed to be unequivocally unreasonable. FIN-FSA may also decide not to impose a penalty payment or suspend the decision to impose a penalty payment on a legal person if it reports the matter to the police authorities, or takes another supervisory measure as provided by law.
A penalty payment may be imposed, in addition to or instead of the penalty payment imposed on a legal person, on such member of the management of the legal person whose obligations have been contravened by the act or omission, if such member has significantly contributed to the act or omission.
A penalty payment may not be imposed on a natural person for an act or omission that is punishable by criminal law. FIN-FSA may, however, impose a penalty payment but decide not to report the matter to the police authorities, if the act or omission, after comprehensive assessment, is deemed negligible in terms of its detrimental effect, the degree of guilt of the offender, the resulting profit and any other aspects of the act or omission.
According to section 41 of the Act on the Financial Supervision Authority, the size of the penalty payment is based on a comprehensive assessment. In assessing the size of the penalty payment, consideration must be given to
- the nature, scope and duration of the breach
- the financial position of the person subject to the penalty payment
- profits gained or damage caused, in so far as it can be determined
- the person’s cooperation with FIN-FSA in investigating the matter
- previous breaches related to financial market provisions
- potential impact on financial stability.
FIN-FSA has, on its website, disclosed the principles to be taken into account in the comprehensive assessment of a penalty payment.
The maximum amount of a penalty payment is laid down in sections 41 and 41a of the Act. The maximum amount of the penalty payment depends, among other things, on whether it concerns a legal or natural person, and on the provision breached.
The penalty payment is payable to the State.