Foreign operations of a Finnish credit institution
A Finnish credit institution may operate abroad by establishing a branch or providing services on a cross-border basis. Commencement of activities requires either a notification or an authorisation procedure depending on whether the activity is conducted in another member state of the European Economic Area (EEA) or outside the EEA. In the EEA, a financial institution belonging to the same group as the credit institution is subject to the same rules as the credit institution.
Operations in another EEA state
Establishment of a branch in another EEA state necessitates a notification to the FIN-FSA. With respect to the description of branch activities, the notification must be appended with Annex I (branch passport notification or a change in a branch particulars notification) and Annex IV (termination of the operations of a branch) of the Commission Implementing Regulation (EU) No 926/2014 laying down implementing technical standards with regard to standard forms, templates and procedures for notifications relating to the exercise of the right of establishment and the freedom to provide services according to Directive 2013/36/EU of the European Parliament and of the Council.
The FIN-FSA must, within three months, process the matter and notify the supervisory authority of the host member state (the state in which the credit institution intends to carry out its activities) that there is no impediment to the establishment of a branch. The credit institution is also informed of this notification. If a branch cannot be established, the FIN-FSA issues a decision which is subject to a right of appeal. The authority of the host member state must process the FIN-FSA’s notification and respond to the applicant within two months. If the host state authority does not respond within two months, the branch can commence its activities.
Credit institutions subject to direct supervision by the European Central Bank (ECB) will submit the notification to the FIN-FSA. However, the notification is processed and the final decision is taken by the ECB.
Cross-border provision of services
A credit institution that wishes to provide services on a cross-border basis, without establishment of a branch, must notify the FIN-FSA thereof with Annex V of the abovementioned Commission Implementing Regulation. The FIN-FSA notifies the authority of the future host member state within one month of receipt of the credit institution’s notification. Cross-border provision of services may be commenced immediately after the FIN-FSA has made this notification.
Credit institutions subject to direct supervision by the ECB will submit the notification to the FIN-FSA. However, the notification is processed by the ECB.
Operations in a non-EEA state
Establishment of a branch in a non-EEA member state necessitates an authorisation granted by the FIN-FSA. The Ministry of Finance has issued a Decree specifying the annexes that must be appended to the application for authorisation submitted to the FIN-FSA.
Credit institutions subject to direct supervision by the ECB will submit the application to the FIN-FSA. However, the application is processed and the final decision is taken by the ECB.
VMA ulkomaisen luottolaitoksen Suomessa olevan sivuliikkeen ja talletuspankkien yhteenliittymän keskusyhteisön toimilupahakemukseen sekä sivuliikkeen perustamista ulkomaille koskevaan hakemukseen liitettävistä selvityksistä (in Finnish)
Määräys 3/2016 (in Finnish)
Cross-border provision of services
Provision of services on a cross-border basis without establishment of a branch is not possible.