FinTech = Financial Technology, namely technology, notably information technology, that is used for the provision of banking, insurance, financial, investment or payment services. The term is also used to refer to growth companies that develop new financial technologies or new services based on financial technologies.
Examples of FinTech innovations and phenomena
- robotic asset management
- mobile wallets
- customer service chatbots
- crypto assets, such as Bitcoin, Litecoin and Ethereum
- peer-to-peer lending and peer-to-peer insurance
- smart contracts.
What is the FIN-FSA’s role in digitalisation and FinTech issues?
Digitalisation is transforming the structures and operating practices of society, and the financial sector is no exception. Increasing competition, regulatory reform and changing customer needs and expectations are encouraging financial companies to develop services and products based on new technologies for their customers. The FIN-FSA keeps track of technological advances and trends in the financial sector, accommodating its supervisory activities to reflect the development of the sector. The FIN-FSA is also the authorisation authority for financial companies. New service providers, such as FinTech start-up companies, apply for authorisation or registration with the FIN-FSA, as required. The FIN-FSA welcomes innovation but, in its role as an authority, it also needs to identify the risks inherent in innovation.
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Financial sector’s capital position as at 31 March 2022: Finnish financial sector’s good capital position increasingly important – uncertainty marks the operating environment and risks are elevated
The impacts of Russia’s war, the pick-up in inflation and slowdown in economic growth are creating a high level of uncertainty, accompanied by a rise in interest rates and decline in share values. The preparedness of supervised entities for the consequences of these developments and for possible cyber attacks requires sufficiently large capital buffers for all situations and voluntary contingency plans.Press release
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Penalty payment of EUR 125,000 for LocalTapiola Asset Management Ltd due to omissions concerning arrangements for transaction reporting
The Financial Supervisory Authority (FIN-FSA) has imposed a penalty payment of EUR 125,000 on LocalTapiola Asset Management Ltd. In the period between January 2018 and July 2020, the company failed to comply with the provisions concerning the arrangements for transaction reporting.Press release
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Tero Kurenmaa appointed as FIN-FSA Director General
The Parliamentary Supervisory Council has today appointed Tero Kurenmaa, LL.D., to the position of Director General of the Financial Supervisory Authority (FIN-FSA) for a five-year term commencing on 15 June 2022. The appointment was made on the basis of a proposal by the FIN-FSA Board.Press release
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Authorised representative’s supervision of Elo Mutual Pension Insurance Company to end
In its decision of December 2020, the Financial Supervisory Authority (FIN-FSA) appointed an authorised representative to supervise Elo Mutual Pension Insurance Company until further notice. The FIN-FSA is now of the opinion that Elo has taken extensive and significant measures to develop its corporate governance, and the authorised representative’s supervision will be brought to an end on 30 June 2022.Press release
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Penalty payment of EUR 25,000 and public warning for Nada express osk due to omissions concerning compliance with anti-money laundering regulations
The omissions relate to various obligations under the regulations on preventing money laundering and terrorist financing. Specifically, there have been shortcomings pertaining to the obliged entity's risk assessment, the assessment of risks associated with customer relationships, customer due diligence, the retention of customer due diligence data, the enhanced customer due diligence obligation, ongoing monitoring as well as the obligation to obtain information and report.Press release
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Amendments to FIN-FSA regulations and guidelines 3/2011 as regards sustainability risks and sustainability factors to be taken into account
Supervision release
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Amendments to FIN-FSA regulations and guidelines 7/2018 concerning the integration of sustainability factors into product governance obligations and to implement new ESMA Guidelines on appropriateness requirements
Supervision release
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Amendment to regulations and guidelines 9/2014 on the introduction of the LEI code
Supervision release
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Banks under FIN-FSA's direct supervision have shortcomings in identification and management of doubtful receivables and in methods and processes for measurement of expected credit losses
Supervision release
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European Commission has published several new interpretation recommendations on financial sanctions
Supervision release