Assessment of the suitability of members of the management body and key function holders

Regulations and guidelines 15/2021 (pdf)

Assessment of the suitability of members of the management body and key function holders

  • valid from 15 January 2022 until further notice

These regulations and guidelines are applicable to the following authorised supervised entities and foreign supervised entities, as referred to in the Act on the Financial Supervisory Authority (878/2008):

  • credit institutions
  • investment firms
  • central bodies of amalgamations of deposit banks
  • holding companies of credit institutions and investment firms
  • holding companies of financial and insurance conglomerates, insofar as the statutory requirements for the fitness and propriety of management applicable to them meet the statutory requirements for credit institutions
  • foreign credit institutions authorised in a non-EEA country and having a branch in Finland
  • foreign investment firms authorised in a non-EEA country and having a branch in Finland

Reporting information on fitness and propriety to the Financial Supervisory Authority

Entities supervised by the Financial Supervisory Authority, i.e. credit institutions, investment firms, central bodies of amalgamations of deposit banks, holding companies of credit institutions and investment firms, holding companies of financial and insurance conglomerates as well as foreign credit institutions and investment firms authorised in a non-EEA country and having a branch in Finland:

Information is reported to the Financial Supervisory Authority (FIN-FSA) via electronic services. FIN-FSA's electronic services

Credit institutions under the supervision of the ECB:

Information on new members of the board of directors and the board of governors as well as new managing directors and their deputies is reported via the ECB electronic services IMAS Portal: ECB electronic services https://www.bankingsupervision.europa.eu/banking/portal/imas/html/index.en.html

Notifications concerning changes to persons other than the abovementioned members of management, including persons responsible for key functions, and notifications of changes to previously reported information should be submitted using the form Significant supervised entities Fit and Proper Questionnaire. The form should be sent via email to the FIN-FSA Registry, address kirjaamo(at)finanssivalvonta.fi.

Secure email instructions

Description of the Financial Supervisory Authority's assessment procedures, as referred to in paragraph 171 of the joint ESMA and EBA Guidelines on the assessment of the suitability of members of the management body and key function holders EBA/GL/2021/06, ESMA35-36-2319:

The supervised entity may fulfil its statutory disclosure obligation regarding changes in the management of an institution and make notifications regarding other persons responsible for the key functions of credit institutions, as referred to in the guidelines, by reporting information on the persons being assessed using the tools described above.

Member credit institutions according to the Act on the Amalgamation of Deposit Banks (599/2010) may submit to the FIN-FSA quarterly information on new appointments in the management of member credit institutions and on new non-executive key function holders. The notification shall be made through a list notification procedure, which should include the name of the credit institution, the person appointed, their personal identity number, details of the position, the starting date, and who the person has replaced. The information shall be submitted by list notification no later than two weeks after the end of each quarter. The list notification procedure applies only to member credit institutions of amalgamations. In the case of central bodies and other companies belonging to amalgamations, notifications shall be submitted to the Financial Supervisory Authority for assessment.

The suitability assessment procedure is based on the information provided by the supervised entity and on information obtained by the FIN-FSA from criminal and fine records as well as its own registers and, if necessary, from other sources.

The FIN-FSA emphasises that, in accordance with paragraph 170 of the guidelines, supervised entities should report without delay any material shortcomings identified concerning any of the members of the management body and the management body’s collective composition. In accordance with paragraph 177 of the guidelines, the FIN-FSA recommends that similar action be taken with regard to shortcomings identified concerning any persons responsible for key functions.

The notification shall be processed in the manner described in section 181 of the guidelines.

The maximum period referred to in paragraph 179 of the guidelines is four months from the date on which the FIN-FSA receives all the information necessary to make an assessment. Within this period, the FIN-FSA shall notify the supervised entity if, as a consequence of the notification, it considers that, as a result of the appointment, measures referred to in section 28 of the Act on the Financial Supervisory Authority should be taken to restrict the activities of the supervised entity’s management. The time limit does not have the legal effects described in paragraph 190 of the guidelines.

The maximum period referred to in paragraph 180 of the guidelines where the assessment of suitability is performed in the context of an authorisation application is six months from the date on which the FIN-FSA receives all the information necessary to make an assessment. In addition, the 12-month time limit with regard to a decision to grant or refuse authorisation, referred to in paragraph 188, of the guidelines will be taken into account.

More information

FIN-FSA regulations and guidelines