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.
Keywords: Europe, Finland, Banking, Insurance, Securities, Climate Change Risk, Cyber Risk, ESG, AML/CFT, Fintech, FIN-FSA
Previous ArticleAPRA Publishes Submission on Fintech and Regtech
The Australian Prudential Regulation Authority (APRA) has published the findings of its latest climate risk self-assessment survey conducted across the banking, insurance, and superannuation industries.
The French Prudential Supervisory Authority (ACPR) published a notice related to the methods for calculating and publishing prudential ratios under the Capital Requirements Directive (CRD IV) and the minimum requirement for own funds and eligible liabilities (MREL).
The European Insurance and Occupational Pension Authority (EIOPA) published the risk dashboard based on Solvency II data and the final version of the application guidance on climate change materiality assessments and climate change scenarios in the Own Risk and Solvency Assessment (ORSA).
The European Banking Authority (EBA) and the European Central Bank (ECB) published their responses to the consultations of the International Sustainability Standards Board (ISSB) and the European Financial Reporting Advisory Group (EFRAG) on sustainability-related disclosure standards.
A Consultative Group on Risk Management (CGRM) at the Bank for International Settlements (BIS) published a report that examines incorporation of climate risks into the international reserve management framework.
The European Banking Authority (EBA) published the final guidelines on liquidity requirements exemption for investment firms, updated version of its 5.2 filing rules document for supervisory reporting, and Single Rulebook Question and Answer (Q&A) updates in July 2022.
The European Insurance and Occupational Pensions Authority (EIOPA) published Version 2.8.0 of the Solvency II data point model (DPM) and XBRL taxonomy.
The European Union published, in the Official Journal of the European Union, an opinion from the European Economic and Social Committee (EESC); the opinion is on the proposal for a regulation to amend the Capital Requirements Regulation (CRR).
HM Treasury published a draft statutory instrument titled “The Financial Services (Miscellaneous Amendments) (EU Exit) Regulations 2022,” along with the related explanatory memorandum and impact assessment.
The Australian Prudential Regulation Authority (APRA) is seeking comments, until October 21, 2022, on the introduction of CPS 230, which is the new cross-industry prudential standard on operational risk management.