Featured Product

    FIN-FSA Makes Several Regulatory Announcements

    December 18, 2020

    FIN-FSA announced that Version 20.0.8 of the FIN-FSA Reporting Application (XBRL/XML) and the new Excel workbooks for EBA, EIOPA, and AIFMD data collections are available for download in the Jakelu Distribution Service. Workbooks for the EBA DPM Version 2.10 have been released in the reporting application. For remuneration reporting, the new REM and REM HE modules have been introduced. Other recent regulatory updates from FIN-FSA address loan cap and countercyclical capital buffer (CCyB) requirements for banks, recommendation on distribution of bank profits, reporting compliance breach by Aktia Bank Plc, and the foreseeable stringency in information security requirements as part of the operational risk supervision.

    The following are the key highlights of these recent regulatory developments:

    • FIN-FSA decided to maintain the housing loan cap (a maximum of 90% for other than first-home loans and 95% for first-home loans) at its standard level and will not impose a CCyB requirement on banks and other credit institutions. 
    • FIN-FSA recommended that credit institutions under its direct supervision should exercise extreme prudence in profit distribution paid in cash until September 31, 2021. The recommendation also applies to buy-backs and redemptions of shares in circumstances where the purpose of such buy-backs and redemptions would be the distribution of profits. The recommendation applies to credit institutions on their highest consolidation level. The decision is based on a recommendation issued by ECB on December 15, 2020.
    • FIN-FSA imposed an administrative fine of EUR 40,000 on Aktia Bank Plc. This is because, during October 01, 2017 to March 31, 2019, the company reported incorrect information (FINREP F19 report) on forbearance exposures in accordance with the EU Capital Requirements Regulation and the Commission Regulation adopted pursuant thereto. In addition, there have been inaccuracies in FINREP reports F20.4 Geographical breakdown of assets by residence of the counterparty and F20.5 Geographical breakdown of off-balance sheet exposures by residence of the counterparty.
    • Fin-FSA highlighted that it assesses information security in financial sector entities in several stages and the related regulation is likely to become more stringent as part of its operational risk supervision of the financial sector. In this context, Fin-FSA pointed out that, on September 24, 2020, EC issued a comprehensive Digital Finance Package containing, among others, a proposal for a regulation on digital operational resilience, the Digital Operational Resilience Act (DORA). If implemented, the Act would, for example, impose an obligation to conduct information security tests covering the ICT function. The proposed Act envisages the establishment of a separate oversight framework for critical ICT third-party service providers and supervision of outsourcing would be further tightened. The EU Directive on Security of Networks and Information systems (NIS Directive) is also under review at present.


    Related Links

    Keywords: Europe, Finland, Banking, Reporting, Jakelu Distribution Service, FINREP, Regulatory Capital, Basel, CRR, Reporting Framework 2.10, Dividend Distribution, Macro-Prudential Policy, CCyB, Aktia Bank, FIN-FSA

    Featured Experts
    Related Articles

    US Agencies Issue Regulatory Updates, FDIC Launches Tech Sprint

    The Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.

    January 13, 2022 WebPage Regulatory News

    EBA Issues Guide on Bank Resolvability, Consults on Transferability

    The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).

    January 13, 2022 WebPage Regulatory News

    HKMA Extends Repayment for Trade Facilities, Consults on Crypto-Assets

    The Hong Kong Monetary Authority (HKMA) published a circular, along with the reporting form and instructions, for self-assessment, by authorized institutions, of compliance with the Code of Banking Practice 2021.

    January 12, 2022 WebPage Regulatory News

    FCA Registers Securitization Repositories; PRA Issues 2022 Priorities

    The Financial Conduct Authority (FCA) decided to register European DataWarehouse Ltd and SecRep Limited as securitization repositories under the UK Securitization Regulation, with effect from January 17, 2022.

    January 12, 2022 WebPage Regulatory News

    EC Regulation Sets Out Methods for Measuring K-Factors Under IFR

    The European Commission (EC) published the Delegated Regulation 2022/25, which supplements the Investment Firms Regulation (IFR or Regulation 2019/2033) with respect to the regulatory technical standards specifying the methods for measuring the K-factors referred to in Article 15 of the IFR.

    January 11, 2022 WebPage Regulatory News

    BIS Studies How Platform Models Impact Financial Stability & Inclusion

    The Bank of International Settlements (BIS) published a paper that assesses the ways in which platform-based business models can affect financial inclusion, competition, financial stability and consumer protection.

    January 10, 2022 WebPage Regulatory News

    ESAs Publish List of Financial Conglomerates for 2021

    The European Supervisory Authorities (ESAs) published the list of identified financial conglomerates for 2021.

    January 07, 2022 WebPage Regulatory News

    APRA Licenses Two More Banks, Reduces Committed Liquidity Facility

    The Australian Prudential Regulation Authority (APRA) updated the list of authorized deposit-taking institutions, granting license to Barclays Bank PLC and Crédit Agricole Corporate and Investment Bank to operate as foreign authorized deposit-taking institutions under the Banking Act 1959.

    January 07, 2022 WebPage Regulatory News

    EU Issues SII Corrigendum; EIOPA Assesses SII Reporting Exemptions

    EU published, in the Official Journal of the European Union, a corrigendum to the Delegated Regulation 2015/35, which supplements Solvency II Directive (2009/138/EC).

    January 06, 2022 WebPage Regulatory News

    EBA Opines on Impact of De-Risking and Associated AML/CFT Challenges

    The European Banking Authority (EBA) published an Opinion on the scale and impact of de-risking in European Union and the steps that competent authorities should take to tackle unwarranted de-risking.

    January 05, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 7860