Finnish operations of a foreign credit institution
EEA credit institution
A foreign credit institution with headquarters in an EEA state may establish a branch in Finland under the same conditions specified above as a Finnish credit institution. The authority of the credit institution’s home member state will notify the FIN-FSA of the credit institution’s right to carry out credit institution activity and specify the services the branch intends to offer. The FIN-FSA must respond to the credit institution within two months of receipt of the notification.
The FIN-FSA supervises the activities of the branch to a limited extent. Supervision of risks to the activities and macroprudential supervision fall within the competence of the credit institution’s home member state. Branches that accept deposits are required to provide information on the deposit guarantee scheme and its organisation. The deposit guarantee of the branch is determined on the basis of the home member state’s scheme.
If a branch fulfils the assessment criteria of a significant institution as specified by the Single Supervisory Mechanism, the branch is subject to supervision by the ECB.
Cross-border provision of services
Supervision of credit institutions with cross-border operations is primarily the responsibility of the home supervisory authority. However, the Financial Supervisory Authority supervises the customer transaction practices of credit institutions providing cross-border services and their compliance with the provisions enacted for customer protection.
Non-EEA credit institution
A non-EEA credit institution may establish a representative office in Finland if the FIN-FSA grants an authorisation to that effect. More specific provisions on the conditions for authorisation are provided in Chapter 17 of the Credit Institutions Act (610/2014).
A non-EEA credit institution may open a representative office in Finland by informing the FIN-FSA thereof. The purpose of a representative office is to provide information on the credit institution and its services. However, it may not be used to carry out credit institution activities, e.g. accept deposits or grant loans.
Non-EEA member states may not provide cross-border services in Finland.