Administrative fine imposed on Keva for failures in reporting derivative contractsThe Financial Supervisory Authority (FIN-FSA) has imposed an administrative fine of EUR 90,000 on Keva. In 2019–2023, Keva has neglected its obligation to ensure that details of all derivatives contracts concluded by it are reported to a trade repository as required by regulations.
The obligation to report derivatives contracts to a trade repository is based on the EU Regulation on OTC derivatives, central counterparties and trade repositories (European Market Infrastructure Regulation, EMIR). The objective of the Regulation is to increase transparency and reduce risks in the derivatives markets. Therefore, the Regulation requires that counterparties report the details of all derivatives contracts they conclude to trade repositories, where the information is accessible on a centralised basis and more readily to the FIN-FSA and other authorities.
Contrary to its normal procedures, Keva had not concluded agreements on the transfer or delegation of its EMIR reporting with four counterparty banks. These banks had, therefore, not reported the derivatives contracts concluded with Keva to the trade repository on behalf of Keva. Nor had Keva undertaken the EMIR reporting itself.
Director General of the Financial Supervisory Authority Tero Kurenmaa points out that other companies have also been sanctioned in the past for shortcomings in reporting.
“Regulations are aimed at increasing transparency and reducing risks in derivatives markets. Data on derivatives markets must be of high quality, comprehensive and up to date, which calls for careful compliance with reporting rules. Data quality is one of the FIN-FSA’s supervisory priorities in 2024.”
In accordance with the Act on the Financial Supervisory Authority, the amount of an administrative fine is based on an overall assessment. In assessing the amount of the fine, consideration has been given to the nature, extent and duration of the malpractice. The administrative fine is payable to the State.
The decision on the imposition of an administrative fine is not yet legally binding. Keva may appeal the decision to the Helsinki Administrative Court within 30 days of receipt of notice of the decision. Information on the legal validity of the decision is available on the FIN-FSA website.
For further information, please contact
Janne Häyrynen, Head of Legal. Requests for interviews are coordinated by FIN-FSA Communications, tel. +358 9 183 5030 (weekdays 9:00–16:00).
FIN-FSA decision (pdf, Finnish)