Employee pension insurance
The Employee Pension Institutions Division of the Financial Supervisory Authority (FIN-FSA) is responsible for supervising the solvency of employee pension companies, company pension funds, insurance funds and statutory pension institutions. In addition, we participate actively in the preparation and enforcement of regulations relating to pension institutions.
Financial Supervisory Authority’s findings in supervision of life and non-life insurance companies during 2019
Regulations and guidelines 8/2014 Management of operational risk in supervised entities of the financial sector updated
Financial Supervisory Authority permits temporary exemptions for implementation of strong customer authentication in online card payments
EIOPA launches two consultations: outsourcing to cloud service providers and Solvency II supervisory reporting and public disclosure
EBA published a consultation on 27 June on its technical standards related to market risk as well as a data collection and roadmap to upcoming regulation
Financial Supervisory Authority seminar: Digitalisation, artificial intelligence and data use are transforming financial services. What does this mean for the customer?
Financial Supervisory Authority: Pension insurance companies must remain within their field of business
Financial position and risks of supervised entities as at 30 June 2019: Weaker economic cycle weighs on the Finnish banking and insurance sector
Report on anti-money laundering and its implementation in Europe emphasises need for sufficient supervision resources and importance of international cooperation
Financial sector’s capital position as at 31 March 2019: Finnish financial sector’s capital position remained good
EIOPA has published an updated list of validation rules and a List of known issues document | EIOPA
Updated encryption software for CSV-based reporting applications available for download in the Jakelu distribution service | National reporting (Virati)
New version of FIN-FSA’s Reporting Application downloadable from Jakelu Distribution Service | EBA EIOPA ESMA
Updated workbooks and instructions for the RA data collection published | National reporting (Virati)
New FIN-FSA Reporting Application workbooks for Pension Fund downloadable from the Jakelu Distribution Service | EIOPA
The objectives of the work of the Financial Supervisory Authority (FIN-FSA) include ensuring the stable operation of pension institutions, safeguarding the interests of the insured, and general confidence in the functioning of financial markets. In practice, the FIN-FSA implements supervision by conducting investigations and narrowly focused inspections, and through ongoing supervision. Ongoing supervision refers to the regular supervision of pension institutions based on the electronic or other reports supplied by the pension institutions, contacts, meetings and other general monitoring and supervision of activities. In addition, the FIN-FSA must be notified or the FIN-FSA’s consent or authorisation must be requested for certain measures, such as outsourcing, changes to the rules, insurance portfolio transfers, and fit and proper reports.
Supervision of institutions for occupational retirement provision (IORPs) is mainly the responsibility of the FIN-FSA’s Employee Pensions Institutions division. The division has a total of nearly 200 supervised entities. The FIN-FSA also applies a risk-based approach to the allocation of supervision resources. In practice, this means that the size and operational risk level of the supervised entity are taken into consideration when deciding on supervision. Both quantitative indicators and qualitative assessments, for example of governance, including outsourcing, are taken into account when assessing the level of operational risk. The FIN-FSA regularly conducts stress tests in which it assesses the effects of changes in the investment environment on the financial situation of pension institutions. In the case of IORPs, stress tests are conducted at least once a year.
The FIN-FSA maintains contact with supervised entities, monitors reporting and otherwise targets supervision in accordance with risk-based principles. If information received about a supervised entity’s activities gives rise to questions, they are investigated. If shortcomings are significant, they are subjected to inspection. An inspection may also be based on something other than an observed shortcoming. The supervised entity is given written feedback on the outcome of the inspection.
Significant irregularities might lead to sanctions. Statutory sanctions are, as a rule, only imposed in connection with more serious offences. The FIN-FSA may also use other means of supervision to remedy observed shortcomings. The measures used must always be proportionate to the pursued objective. An inspection is the normal prerequisite for the initiation of a sanctioning process (with the exception of administrative fines for delays in reporting). With regard to sanctioning, the Director General’s Staff of the FIN-FSA plays a key role, in addition to the supervisory department. The motive for an inspection, however, is to clarify the issue in question and is not in itself aimed at sanctioning.