Financial Crime World

Finnish Financial Regulatory Bodies: FIN-FSA, ESAVI, and the Finnish Competition and Consumer Authority

Financial regulatory bodies play a crucial role in ensuring the stability and transparency of the financial sector in Finland. This article explores three significant regulatory bodies: The Finnish Financial Supervisory Authority (FIN-FSA), The Regional State Administrative Agency of Southern Finland (ESAVI), and the Finnish Competition and Consumer Authority.

The Finnish Financial Supervisory Authority (FIN-FSA)

As the primary regulatory body in Finland for supervising local Finnish entities within the financial and insurance sector, the FIN-FSA maintains financial stability and ensures smooth operations for credit institutions and their supervised entities. It collaborates with international regulatory bodies to achieve a unified approach in regulation and supervision.

  • Primary regulator for local Finnish entities in the financial sector
  • Maintains financial stability and ensures smooth operations for credit institutions and their supervised entities
  • International collaboration with regulatory bodies for a unified approach

The Regional State Administrative Agency of Southern Finland (ESAVI)

ESAVI takes on regulatory and supervisory functions when financial entities fall outside the full licensing requirements. Its primary focus is on ensuring compliance with the Finnish Money Laundering Act for financial service providers not supervised by the FIN-FSA, including foreign exchange service providers.

  • Regulates financial entities outside full licensing requirements
  • Focuses on Money Laundering Act compliance for financial service providers not supervised by the FIN-FSA

Finnish Financial Ombudsman Bureau

For matters concerning advice and support in the areas of banking, insurance, and securities, customers and small to medium-sized enterprises can rely on the Finnish Financial Ombudsman Bureau. The ombudsman-administered bureau promotes consumer interests and fosters sound practices within the financial sector with its non-binding yet influential recommendations.

The Finnish Competition and Consumer Authority

The Finnish Competition and Consumer Authority assumes responsibility for supervising consumer protection in line with the Finnish Consumer Protection Act. Its extensive competence enables it to intervene in matters involving the offer, sale, and marketing of consumer products, including financial sector operators and other entities marketing goods or services to consumers.

  • Supervising consumer protection in accordance with the Finnish Consumer Protection Act
  • Intervenes in offer, sale, and marketing of consumer products for all regulatory bodies, including the financial sector

RegulationScope of Financial Services Providers and Products

These regulatory bodies supervise a wide range of financial activities and products. Their jurisdiction isn’t restricted by product categories, but legislation regulates specific financial services and activities. Below is a brief overview of the areas of regulation for each financial service provider and product.

FIN-FSA

  • Securities and derivatives market
  • Retail and investment banking
  • Investment advisory services
  • Payment services
    • Regulation of banking services
    • Payment services
    • Crowdfunding
    • Investment services
    • Fund management
    • Services provided by Helsinki Stock Exchange

ESAVI

  • Supervises entities that provide non-regulated financial services
  • Focuses on AML compliance for financial service providers not supervised by the FIN-FSA
  • List of services that may give rise to an obligation to register in the AML register

Authorization and RegistrationProcess for Financial Services Firms

The authorization and registration process for financial services firms vary based on the nature of their business activities and whether they’re Finnish entities or operate on a cross-border basis.

Examples

  • A banking or deposit-taking entity requires a credit institution license
  • Payment services sector requires registration or authorization to provide payment services in Finland

Summary

In conclusion, these regulatory bodies play a crucial role in shaping the Finnish financial sector landscape by maintaining stability and transparency. They ensure that the sector remains vibrant, adaptive, and governed by a robust and effective regulatory framework. Their extensive expertise and unwavering commitment to consumer protection make a significant impact on the financial sector.