Mortgage credit intermediaries

Cross border activity

Cross-border activity from Finland to an EEA Member State


Finnish mortgage credit intermediary

Branches of mortgage credit intermediaries and provision of services on a cross-border basis from Finland to other Member States of the European Economic Area (EEA) (Act on intermediaries of consumer credits relating to residential immovable property (852/2016), section 15)

A Finnish mortgage credit intermediary registered in a register maintained by the Financial Supervisory Authority (FIN-FSA) may intermediate consumer credits relating to residential immovable property, or provide advisory services relating to such credits, in another EEA Member State, either by establishing a branch or by providing services on a cross-border basis.A mortgage credit intermediary intending to commence intermediation of consumer credits relating to residential immovable property, or the provision of advisory services relating to such credits, in one or more other EEA Member States must inform the FIN-FSA, in good time before commencement of the activity, of the services the intermediary intends to provide and in which Member State or Member States they will be provided. The establishment of a branch and the provision of services on a cross-border basis are to be reported using the appropriate notification forms, which are available with the relevant instructions, as noted below.

A notification form submitted by a mortgage credit intermediary is deemed to have been received by the FIN-FSA on the date on which the data reported in the form are correct and consistent with the data in the register of credit intermediaries. Mortgage credit intermediaries must also pay attention to the fact that, according to section 9 of the Act on intermediaries of consumer credits relating to residential immovable property (852/2016), a credit intermediary must inform the FIN-FSA, without delay, of any changes to data entered in the register of mortgage credit intermediaries.

The FIN-FSA notifies the authorities of the host Member State, within a period of one month after having received the notification form, of the data reported thereon. The FIN-FSA informs the credit intermediary, without delay, of the submission of the data to the authorities of the host Member State. The credit intermediary is entitled to commence provision of the notified services or to establish a branch in another EEA Member State one month after the date on which he was informed by the FIN-FSA that the relevant data has been submitted to the authorities of the host Member State.

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Notification of establishment of a branch

A mortgage credit intermediary must inform the FIN-FSA of the establishment of a branch in another EEA Member State, in good time before establishment of the branch, using the form ‘Notification form for exercising the freedom of establishment’. The form is to be filled out in accordance with the relevant instructions.

The notification form and the data required thereon are to be submitted to the FIN-FSA by email to mcd.passporting(at)fiva.fi. Enter in the subject field of the email message: ‘Credit intermediary notification’.

The FIN-FSA must be informed, without delay, of any changes to data reported in a previous notification, by submitting a new notification form via email to mcd.passporting(at)fiva.fi. Enter in the subject field of the email message: ‘Notification of change to previous credit intermediary notification’. Any changed data must be clearly indicated.

Notification of provision of services on a cross-border basis

A mortgage credit intermediary must inform the FIN-FSA of the provision of services on a cross-border basis in another EEA Member State, in good time before commencing the provision of services, using the form ‘Notification form for exercising the freedom to provide services’. The form is to be filled out in accordance with the relevant instructions.

The notification form and the data required thereon are to be submitted to the FIN-FSA by email to mcd.passporting(at)fiva.fi. Enter in the subject field of the email message: ‘Credit intermediary notification’.

The FIN-FSA must be informed, without delay, of any changes to data reported in a previous notification by submitting a new notification form via email to mcd.passporting(atfiva.fi. Enter in the subject field of the email message: ‘Notification of change to previous credit intermediary notification’. Any changed data must be clearly indicated.


Cross-border activity from an EEA Member State to Finland

Foreign mortgage credit intermediary

Branches of mortgage credit intermediaries and provision of services on a cross-border basis from abroad to Finland (Act on intermediaries of consumer credits relating to residential immovable property (852/2016), section 16)

The FIN-FSA must be notified if a mortgage credit intermediary registered in another EEA Member State intends to provide services on a cross-border basis or establish a branch in Finland. Such notification is submitted to the FIN-FSA by the authority of the credit intermediary's home Member State whom the credit intermediary has informed of the commencement of service provision in Finland. A foreign credit intermediary may commence the provision of services in Finland one month after the date on which he was informed by the authority of the home Member State that the FIN-FSA has been notified of the commencement of such activity in Finland.

A foreign mortgage credit intermediary may provide advisory services in Finland, as set out in section 4 of the Act on intermediaries of consumer credits relating to residential immovable property. According to said section, only a credit intermediary is allowed to provide advisory services concerning consumer credits relating to residential immovable property. Anyone acting as an agent for a creditor or belonging to the same group of companies as a creditor in the manner referred to in section 6 of the Accounting Act (1336/1997), or a credit intermediary having such a participating interest or associate relationship with a creditor as referred to in section 7 or 8 of the Accounting Act, is not, however, entitled to provide advisory services.

The FIN-FSA will inform a mortgage credit intermediary establishing a branch in Finland of the conditions under which the activity must be pursued in Finland in respect of areas for which there are no harmonised provisions in place, i.e. conditions required in the public interest.

Information for supervisory authorities of other EEA Member States

The European Banking Authority (EBA) has issued Guidelines EBA/GL/2015/19 on passport notifications for credit intermediaries under the Mortgage Credit Directive. According to the Guidelines, the competent authorities should mutually provide information on how the transmission of notifications between authorities should take place.

Restrictions applied in Finland to advisory services provided by mortgage credit intermediaries

In Finland, only a credit intermediary is allowed to provide advisory services concerning consumer credits relating to residential immovable property. Anyone acting as an agent for a creditor or belonging to the same group of companies as the creditor in the manner referred to in section 6 of the Accounting Act (1336/1997), or a credit intermediary having such a participating interest or associate relationship with a creditor as referred to in section 7 or 8 of said Act, is, however, not entitled to provide advisory services.

Language to be used by authorities in communicating notifications

The authorities of other EEA Member States may submit information in relation to notifications, and the notifications with appendices, to the FIN-FSA in Finnish, Swedish or English.

Address to which other authorities should preferably send the information in relation to notifications

The FIN-FSA would appreciate submission by the authorities of other EEA Member States of the information via electronic means at mcd.passporting(at)fiva.fi. The text ‘Notification to Finland’ should be entered in the subject field of the email message.

Where electronic submission of information is not possible, the information may be delivered by post to

Finansinspektionen / Financial Supervisory Authority
P.O. Box 103
FI-00101 Helsinki, Finland

The covering note of documentation delivered by post should indicate that it is a question of either an EEA authority's communication in relation to a credit intermediary notification or a change to the above-mentioned information.

Any queries regarding notifications may be sent electronically to mcd.passporting(at)fiva.fi, with the text ‘Information request’ entered in the subject field of the email message.

 

Conditions required of foreign credit intermediaries in the public interest

Legal basis

According to section 16, subsection 2 of the Act on Intermediaries of Consumer Credit Relating to Residential Property (852/2016), if a foreign credit intermediary establishes a branch in Finland, the Financial Supervisory Authority shall indicate to the credit intermediary, before the branch commences its activities or within two months of receiving from the competent authorities of the credit intermediary’s home Member State the notification referred to in subsection 1, the conditions under which, in areas not harmonised in Union law, those activities are to be carried out in Finland.

The above-mentioned provision is based on Article 32(4) of the Mortgage Credit Directive (Directive 2014/17/EU relating to residential immovable property and amending Directives 2008/48/EC and 2013/36/EU and Regulation (EU) No 1093/2010). The Article stipulates that the competent authorities of the host Member State shall indicate to the credit intermediary the conditions under which, in areas not harmonised in Union law, those activities are to be carried out in the host Member State.

Requirements of public interest

Below are listed the Acts and regulations to be complied with when foreign mortgage credit intermediaries intermediate housing credits and provide advisory services in Finland. The Acts can be found in Finnish and Swedish (and some also in English): www.finlex.fi. In complying with these Acts, any amendments must also be taken into account.

  • Act on Credit Institutions (610/2014)
    • Chapter 15, section 2 Marketing
    • Chapter 15, section 3 Terms of contract
    • Chapter 15, section 11 Maximum loan-to-value ratio

  • Laki asunto-omaisuuteen liittyvien kuluttajaluottojen välittäjistä (852/2016) the whole Act, especially the following provisions:
    • Section 4 Right to provide advisory services
    • Section 6, subsection 1, paragraph 4 Knowledge and competence requirements
    • Section 11 Obligations of the senior management
    • Section 12 Customer funds
    • Section 13 Retention of documents and information relating to credit intermediation or advisory services
    • Section 14 Secrecy obligation

According to section 4 mentioned above, advisory services on consumer credit relating to residential property may only be provided by credit intermediaries. However, the right to provide advisory services does not apply to agents of creditors, or to entities that belong to the same group as the credit intermediary in a manner referred to in section 6 of the Accounting Act (1336/1997), nor to credit intermediaries that have with the creditor a relationship of a participating interest undertaking or an associate, as referred to in sections 7 and 8 of the Accounting Act.

  • Government Decree on professional requirements for creditors and credit intermediaries in connection with consumer credits relating to residential immovable property (1031/2016).

  • Consumer Protection Act (38/1978)
    • Chapter 2 Marketing and code of conduct in customer relations
    • Chapter 6a Distance selling of financial services and instruments
    • Chapter 7a Consumer credit agreements relating to residential property

Information on matters relating to consumer protection is available on the websites of the Finnish Competition and Consumer Authority : www.kkv.fi/en.

  • Code of Real Estate (540/1995)
    • The whole Act, especially Chapters 1 and 2.

  • Housing Transactions Act (843/1994)
  • Act on the Asset Transfer Tax (931/1996)

Regulations and guidelines of the Financial Supervisory Authority

  • 15/2013 Marketing of financial services and products (not available in English)
  • 16/2013 Code of conduct for the provision of financial services (not available in English)