Financial Supervisory Authority (FIN-FSA) is the institution that controls and supervises Finland's financial and insurance industries. The FSA audits institutions such as banks, insurance, and pension companies, Helsinki Stock Exchange. Most of the activities are covered by audited companies. The Bank of Finland covers the remaining 5% of the cost.
The Task of The Finnish Financial Supervisory Authority
Affiliated with the Bank of Finland, the FIN-FSA is free and independent in audit decisions. This institution has nearly 200 employees. The purpose of FIN-FSA is to stabilize credit institutions, insurance, and pension companies in the market. Another goal is for people to have confidence in market transactions. Specific laws sanction these duties.
The Parliamentary Supervisory Council controls the operations of the Financial Supervisory Authority. The Board of the Financial Supervisory Authority determines the supervisory authority's actions, determines the working principles, and provides guidance for this.
Mechanism of FIN-FSA
FIN-FSA and its Board must comply with the law. The board sets strategies and goals and conducts audits to achieve these goals. After the budget has been determined, the Board submits the budget to the Bank of Finland. At a certain time of the year, the Board informs the Parliamentary Supervisory Council about operational targets.
The board negotiates with specific market participants. These consultations are useful for the success of the FIN-FSA's goals and objectives. Besides, there is a discussion about the expected differences in the audit and their fees.
The board, which normally has 6 members, also has 3 alternate members. These members serve for a period of 3 years.
Financial stability and increasing confidence in markets are among the primary goals of FIN-FSA. It is also imperative for investors to be protected and feel safe.
To be at the top of the list in the world in control and efficiency.
FIN-FSA conducts audits, but this is not the only function. FIN-FSA does it separately in regulations. Regulatory activities work concerning the legislation. Transparency is essential in these regulations.
Companies doing business in the financial sector must be prepared for both the adversities in normal conditions and in times of crisis. This situation is specified in the legislation as a condition of readiness.
The Finnish Financial Supervisory Authority (FIN-FSA) combats money laundering, and Finance Finland supports these practices. In the FATF report, it stated that Finland is complying with FATF regulations and fighting money laundering. Besides, they are at a good level in the fight against terrorist financing. However, their efficiency is not very good.
FIN-FSA develops itself and introduces a risk-based approach by innovating. FIN-FSA will also provide more employment sources in these units.
Banks are constantly creating resources to combat money laundering. There were close to 10,000 such cases last year. But only 50 of them were confiscated. This situation can be said for the whole of Europe.