Strategy of the Financial Supervisory Authority 2020-2022: Supervision will focus on impacts and risks of digitalisation and climate change on the financial sector and prevention of money launderingThe strategy of the Financial Supervisory Authority (FIN-FSA) for 2020-2022 is based on three main pillars: orienting supervision according to changes in the operating environment, improving quality and efficiency of operations, and maintaining the strong expertise of personnel. In the next few years, according to the strategy, supervision will focus on three key areas: climate change, digitalisation and prevention of money laundering.
To improve the effectiveness of supervision and the allocation of resources, the strategy adopts a more risk-based approach to supervision. Minimum levels of engagement will be specified for all supervised entities, while the intensity of supervision will be directed at higher-risk activities and larger supervised entities. The significance of supervisory findings will determine more systematically than before the supervisory measures to which resources are allocated.
“The supervisor’s work involves constant prioritisation. It is important for us to identify the most significant risks and to devote more resources to their supervision. By boosting the efficiency of our own operations, we will ensure at the same time that we do not have to compromise on the scope of supervision,” says Anneli Tuominen, Director General of the FIN-FSA.
Digitalisation is changing the business models, products and services of financial sector actors as well as customer behaviour. The changes are of great significance both for the profitability and competitive situation of the sector as well as actors’ operating practices and risks. For this reason, digitalisation is one focus of the FIN-FSA’s strategic work. The FIN-FSA will work in cooperation with domestic parties, Nordic supervisors, European banking, insurance and securities market authorities (EBA, ESMA and EIOPA) and the ECB to deepen understanding of the effects of digitalisation and to develop common supervisory practices. A particular emphasis in supervision will be on ensuring that the financial sector is adequately prepared for IT and cyber risks.
Climate change also has significant effects on the risks and regulation of financial actors and has therefore been included as one of the FIN-FSA’s strategic priorities. The FIN-FSA requires that supervised entities assess the impacts and risks of climate change and climate policy on their operations. In the future, reporting on responsible investments, for example, will also be a focus of supervision.
The abuse of the financial sector for money laundering and terrorist financing and the deficiencies in the supervision of money laundering and terrorist financing have been strongly highlighted over the last couple of years. A strategic goal of the FIN-FSA is that Finland has a good reputation in preventing money laundering.
“We will increase the number of our own inspections and, if necessary, apply sanctions should inspections uncover omissions. At the same time, we emphasise that supervised entities should focus their own actions according to the level of risk of customers and transactions,” says Tuominen.
The strategy of the FIN-FSA is prepared for a three-year period.
For further information, please contact:
Anneli Tuominen, Director General. Requests for interviews are coordinated by FIN-FSA Communications, tel. +358 9 183 5030, weekdays 9.00-16.00.