FIN-FSA Publishes Supervisory Strategy for 2020-22
FIN-FSA published the strategy for 2020-2022. According to the strategy, supervision will focus on the impact and risks associated with digitalization, climate change, and money laundering in the financial sector. The three pillars of the FIN-FSA strategy will be orienting supervision according to changes in the operating environment, improving quality and efficiency of operations, and maintaining the strong expertise of personnel. To improve the effectiveness of supervision and the allocation of resources, the strategy adopts a more risk-based approach to supervision.
Digitalization is changing the business models, products, and services of financial sector actors, in addition to the customer behavior. The changes are of great significance for the profitability and competitive situation of the sector as well as the operating practices and risks. Therefore, the strategic work of FIN-FSA will be focused on digitalization. FIN-FSA will work in cooperation with domestic parties, Nordic supervisors, EBA, ESMA, EIOPA, and ECB to deepen understanding of the effects of digitalization and to develop common supervisory practices. A particular emphasis in supervision will be on ensuring that the financial sector is adequately prepared for IT and cyber risks.
Climate change also has significant effects on the risks and regulation of financial actors and has, therefore, been included as one of the strategic priorities. FIN-FSA requires that supervised entities assess the impact and risks of climate change and climate policy on their operations. In the future, reporting on responsible investments, for example, will also be a focus of supervision. Additionally, the abuse of the financial sector for money laundering and terrorist financing and the deficiencies in the supervision of money laundering and terrorist financing have been strongly highlighted over the last couple of years. Thus, a strategic goal of FIN-FSA is to ensure that Finland has a good reputation in preventing money laundering.
Related Links
Keywords: Europe, Finland, Banking, Insurance, Securities, Climate Change Risk, Cyber Risk, ESG, AML/CFT, Fintech, FIN-FSA
Previous Article
NBB Publishes Regulation on Extension of A Macro-Prudential MeasureRelated Articles
NGFS Updates Address Short-Term Climate Scenarios and Transition Plans
The Network for Greening the Financial System (NGFS) is exploring the development of short-term climate scenarios to complement its existing scenario framework of long-term climate scenarios.
ISSB Updates Address ESG Issues while IASB Consults on Impairments
The International Sustainability Standards Board (ISSB) is seeking feedback, until August 09, 2023, on the exposure draft that sets out the methodology proposed by ISSB to amend the Sustainability Accounting Standards Board (SASB) Standards' metrics
OSFI to Review Liquidity Adequacy Guidelines and Policy Architecture
The Office of the Superintendent of Financial Institutions (OSFI) is consulting, until June 21, 2023, on a review of the liquidity treatment provided in the Liquidity Adequacy Requirements (LAR) Guideline for wholesale funding sources with retail-like characteristics.
ESRB Publishes Report on Cryptos and DeFi; ECB Updates on Digital Euro
The European Systemic Risk Board (ESRB) published a report that outlines the systemic implications of crypto markets and proposes policy options to address the risks stemming from crypto-assets and decentralized finance or DeFi.
EU Agencies Issue Updates on DORA, ESAP, and Crowdfunding Regulation
The European Supervisory Authorities (ESAs) published a discussion paper on their joint advice to the European Commission (EC) on proposals to specify criteria for critical information and communication technology (ICT) third-party service providers
ESAs Propose ESG Disclosure on STS Securitization, Issue Other Updates
The Joint Committee of the three European Supervisory Authorities (ESAs) proposed to amend the Implementing Regulation 2016/1799 on the mapping of External Credit Assessment Institutions' (ECAIs) credit assessments.
UK Authorities Issue Updates, Finalize Policy on Model Risk Management
The Prudential Regulation Authority (PRA) finalized the model risk management principles for banks, the policy statement PS5/23 on risks from contingent leverage, and PS4/23 on moving senior managers regime forms from the PRA Rulebook.
APRA Revises Implementation Timeline for Operational Risk Standard
The Australian Prudential Regulation Authority (APRA) updated the implementation date of the new cross-industry prudential standard CPS 230 on operational risk management
BCBS Consults on Basel FAQs and Amendments, Issues Other Updates
The Basel Committee on Banking Supervision (BCBS) published a report assessing implementation of the global Basel standards on net stable funding ratio (NSFR) and large exposures (LEX) in South Africa
EBA Announces Multiple Regulatory and Reporting Updates in April 2023
The European Banking Authority (EBA) published consultations on the amendments to the guidelines on risk-based anti-money laundering and countering the financing of terrorism (AML/CFT) supervision