Summary of FIN-FSA’s activities in 2021

The activities of the Financial Supervisory Authority are aimed at ensuring financial stability and the necessary smooth operation of credit, insurance and pension institutions, and other supervised entities, so as to safeguard the interests of the insured and maintain confidence in the financial markets. (Act on the Financial Supervisory Authority, section 1)

The state of the financial sector has remained good also in the second year of the COVID-19 pandemic, but risks related to the pandemic and economic developments are still elevated. The FIN-FSA has maintained enhanced monitoring of the risk position of the supervised entities as well as analysis of the development of the COVID-19 pandemic and its economic impacts.

The FIN-FSA’s strategic initiatives proceeded almost according to plan.

Solid progress in the strategic initiatives in 2021 means that the targets highlighted in the strategy for supervisory substance matters are set to be achieved. Efforts supporting the other strategic objectives - high quality and efficiency, expertise and high esteem - are also on track. The achievement of the targets for the strategy period will be assessed in more depth in the next report, covering the year 2022, to the Parliamentary Supervisory Council.

Four out of the six IT projects prioritised from the perspective of the FIN-FSA’s supervisory tasks, proceeded as planned.

The results of the employee survey developed favourably in comparison with the previous study in 2019. The overall result of the study rose from the previous level of satisfactory to the level satisfactory+. In particular, there was clear improvement in the job satisfaction index and several factors related to leadership. In addition, improvements were recorded in the indices describing the commitment and dedication of personnel and the score reflecting the performance capability of the organisation, although this index still lagged behind the standard level in Finnish expert organisations. In comparison with the standard level in Finnish expert organisations, the FIN-FSA fared well in terms of having feedback from line managers, the personnel's view about the future of the organisation and development opportunities, but room for improvement was found in the availability of information and the efficiency of decision-making.

According to a stakeholder survey, the FIN-FSA’s reputation had clearly improved since the previous study in 2017 and was overall at a good level (reputation index 68) and slightly above the average for supervisory authorities and ministries (65). In particular, the reputation improved, based on responses by the insurance sector, media and other authorities. The reputation is being bolstered by cooperability and flexibility, staff competence and professionalism as well as reliability, precision and strictness. Meanwhile, the reputation was most weakened by variation in the quality of supervision, slowness of activities, and cautiousness of statements and interpretations.

Outcomes of FIN-FSA’s critical success factor indicators

The FIN-FSA's set of performance indicators keeps track of the outcomes of the critical success factor indicators. The result of these indicators is measured as a weighted average of the results of the constituent subindicators.

In the review year, nine success factor indicators and 25 subindicators were monitored. The target levels were reached in four success factors indicators and 14 subindicators, while five indicators and 11 subindicators lagged behind their respective targets.

In the review year, the FIN-FSA imposed two penalty payments. The processing time was not in line with the target in either case. At the end of 2020, an organisation change was approved to establish a new Legal unit. The unit was established in 2021, and it began to update the sanction process in the autumn of the year under review. The development effort will continue into 2022.