We understand that it may be difficult to stay up-to-date with the boundless financial news flow. We have therefore compiled an update on the season’s key highlights and regulative changes in the financial sector, which we hope will help you stay on track.
Below you will find key highlights on a more general level and down below more detailed highlights concerning different types of licensed companies operating in the financial sector.
Anti-Money Laundering and KYC
The FIN-FSA has published a summary of its inherent AML/CFT risk assessment
The Finnish Financial Supervisory Authority (FIN-FSA) has published a summary of its inherent risk assessment of money laundering and terrorism financing (ML/TF) of obliged entities under the Act on Preventing Money Laundering and Terrorist Financing (444/2017, the “AML Act”) within the scope of its supervision. The inherent risk assessment was revised and based on the previous inherent risk assessment. The inherent sector-specific risks have remained unchanged. In the FIN-FSA’s view, the highest inherent risk of both ML/TF is related to products and services enabling the fast transfer of funds. A particularly elevated risk is attached to international fund transfers involving several service providers. The summary of the inherent risk assessment includes the FIN-FSA’s assessment of the significance of each sector under its supervision from the perspective of anti-money laundering and counter-terrorist financing. The purpose of the assessment is to help in focusing the supervision of compliance with the AML Act across different sectors.
The summary is available here: https://www.finanssivalvonta.fi/tiedotteet-ja-julkaisut/valvottavatiedotteet/2022/finanssivalvonnan-laatiman-rahanpesun-ja-terrorismin-rahoittamisen-ominaisriskiarvion-yhteenveto-on-julkaistu/
Report on Improving Information Exchange in National Actions to Prevent Money Laundering and Terrorist Financing
The Ministry of Finance has prepared a report on improving the exchange of information in the national Prevention of Money Laundering and Terrorism Financing. The study examines barriers to the exchange of information and potential demands for development. The report highlights problems on the exchange of information between authorities, obliged entities and national working groups within the AML Act.
The report is available here: https://julkaisut.valtioneuvosto.fi/handle/10024/163966
Russia’s war on Ukraine: EU adopts sixth package of sanctions against Russia
EU has adopted a sixth package of sanctions against Russia, which imposes further sanctions against Belarus considering its involvement in this aggression. The sanctions include oil import restrictions, prohibition of oil transport services, financial and business services measures, a broadcasting suspension and export restrictions. The Commission and the High Representative stand ready to put forward additional sanctions in response to the evolution of Russia’s aggression against Ukraine. Member States are responsible for the implementation of sanctions.
Read more here: https://ec.europa.eu/commission/presscorner/detail/en/IP_22_2802
The ESAs have published the joint Report on the withdrawal of authorisation for serious breaches of AML/CFT rules
The European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) have published a joint Report, which provides a comprehensive analysis on the completeness, adequacy and uniformity of the applicable laws and practices on the withdrawal of licence for serious breaches of the rules on anti-money laundering and countering the financing on terrorism (AML/CTF). Recent cases have drawn attention to the significant impact that serious breaches of AML/CFT rules may have on the sound and prudent management of supervised financial entities and their ability to continue meeting the conditions for authorization. Therefore, the joint Report advocates for the introduction in all relevant EU sectoral laws of a specific legal ground to revoke licenses for serious breaches of AML/CFT rules.
EBA publishes Guidelines on role and responsibilities of the AML/CFT compliance officer
The European Banking Authority (EBA) has published Guidelines specifying the role and responsibilities of AML/CTF compliance officer and of the management body of credit or financial institutions. The Guidelines aim to ensure a common interpretation and adequate implementation of AML/CFT internal governance arrangements across the EU in line with the requirements of the EU Directive on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing. The Guidelines specify that credit or financial institutions should appoint one member of their management body who will ultimately be responsible for the implementation of the AML/CFT obligations and clarify the tasks and functions of that person.
The Guidelines can be found here: https://www.eba.europa.eu/sites/default/documents/files/document_library/Publications/Guidelines/2022/EBA-GL-2022-05 GLs on AML compliance officers/1035126/Guidelines on AMLCFT compliance officers.pdf
The FIN-FSA has issued two penalty payments and public warnings due to defects in compliance with anti-money laundering regulations
The FIN-FSA has issued a penalty payment and a public warning to Nada Express and Halgan Services Oy. According to the FIN-FSA, both actors had neglected various obligation under the relevant AML/CTF legislation. The most severe defect of Nada express has been its failure as a money remittance service provider to submit reports of suspicious transaction to the Financial Intelligence Unit of the National Bureau of Investigation on every payment or remittance that has a value of at least EUR 1,000, whether carried out individually or in a number of linked operations. As for Halgan Services, the FIN-FSA noted that the company had not sufficiently carried out customer due diligence, enhanced customer due diligence or taken care of the retention of KYC information. Further, the Halgan Services did not have an adequate AML/CTF risk assessment and failed to conduct sufficient risk based assessment on its customers.
The decisions are available here: https://www.finanssivalvonta.fi/en/publications-and-press-releases/Press-release/2022/penalty-payment-of-eur-10000-and-public-warning-for-halgan-services-oy-due-to-omissions-concerning-compliance-with-anti-money-laundering-regulations/ and https://www.finanssivalvonta.fi/en/publications-and-press-releases/Press-release/2022/penalty-payment-of-eur-25000-and-public-warning-for-nada-express-osk-due-to-omissions-concerning-compliance-with-anti-money-laundering-regulations/
ESG and Sustainable Finance
ESMA prioritises the fight against greenwashing in its new Sustainable Finance Roadmap
The European Securities and Markets Authority (ESMA) has published its Sustainable Finance Roadmap for 2022-2024 (Roadmap). ESMA has identified three priorities for its sustainable finance work including tackling greenwashing and promoting transparency, building the National Competent Authorities’ and ESMA’s capacities in the sustainable finance field and monitoring, assessing and analysing ESG markets and risks. ESMA is actively contributing to the development of the sustainable finance rulebook and to its consistent application and supervision by taking the necessary measures to promote investor protection across the EU. The Roadmap will serve as a practical tool to ensure that ESMA delivers on the wide array of sustainable finance tasks across several sectors in a coordinated way.
ESMA provides supervisors with guidance on the integration on sustainability risks and disclosures in the area of asset management
ESMA has published a Supervisory Briefing to ensure convergence across the EU in the supervision of investment funds with sustainability features, and in combating greenwashing by investment funds. This work will help combat greenwashing by establishing common supervisory criteria for National Competent Authorities (NCAs), to effectively supervise investment funds with sustainability features.
ESAs provide clarifications on key areas of the RTS under the SFDR
ESAs have published a statement providing clarifications on the draft regulatory technical standards (RTS) issued under the Sustainable Finance Disclosure Regulation (SFDR), which include the financial product disclosures under the Taxonomy Regulation. The areas clarified include use of sustainability indicators, principal adverse impact (PAI) disclosures, financial product disclosures, direct and indirect investments, taxonomy-related financial product disclosures, “do not significantly harm” (DNSH) disclosures and disclosures for products with investment options. The statement is aimed to promote a better understanding of the disclosures required under the technical standards of the SFDR.
The statement is available here: ESAs provide clarifications on key areas of the RTS under SFDR (europa.eu)
Proposal for a green transition Consumer Protection Directive
The European Commission has proposed a new Directive amending Directives 2005/29/EC and 2011/83/EU as regards empowering consumers for the green transition through better protection against unfair practices and better information. The proposal is part of the European Commission’s broader goal of becoming the first climate neutral continent by 2050. The proposed Directive would cause amendments to the Consumer Protection Act in Finland. The aim of the amendments is to improve consumers’ ability to make decisions based on more reliable environmental information. The Government notes that the proposal is likely to improve consumers’ ability to make decisions based on more reliable environmental information. However, the Government is concerned that the continued increase in the volume of data may reduce the willingness of some consumers to familiarise themselves with the information provided.
Read more about the project here (only in Finnish and Swedish): https://oikeusministerio.fi/hanke?tunnus=OM026:00/2022
Targeted consultation on the functioning of the ESG ratings market in the European Union and on the consideration of ESG factors in credit ratings
EBA has published, on 24 January 2022, its final draft implementing technical standards (ITS) on Pillar 3 disclosures on Environmental, Social and Governance (ESG) risks. The final draft ITS put forward comparable disclosures to show how climate change may exacerbate other risks within institutions’ balance sheets, how institutions are mitigating those risks, and their ratios, including the GAR, on exposures financing taxonomy-aligned activities, such as those consistent with the Paris Agreement goals. The technical standards aim to ensure that stakeholders are well-informed about institutions’ ESG exposures, risks, and strategies and can make informed decisions and exercise market discipline.
The standards are available here: EBA publishes binding standards on Pillar 3 disclosures on ESG risks | European Banking Authority (europa.eu)
Other relevant changes
Instructions for Suomi.fi e-Authorizations service published for supervised entities
Access authorisations for the FIN-FSA’s new Reporting System, to be introduced in summer 2022, will operate via the Suomi.fi e-Authorisations service, and reporters will manage the authorisations themselves. Management of authorisations is of current interest particularly for entities that report the following data collections to the FIN-FSA: COREP ALM and/or COREP LCR DA. The above-mentioned data collections will be reported via the FIN-FSA’s Reporter Portal as of reference date 31 July 2022. A test environment for the new Reporting System was opened to reporters during June 2022. Both the FIN-FSA and the Suomi.fi have published instructions to support the use of the service.
Commission adopts stronger consumer rules for online financial services
The European Commission has adopted a proposal for reform of the current EU rules on Distance Marketing of Consumer Financial Services, which govern financial services sold at a distance. Over the last 20 years, distance marketing of consumer financial services has changed rapidly. Therefore, the Directive has been subject to a full evaluation. The proposal will now be discussed by the Council and the European Parliament.
The proposal is available here: Consumer protection (europa.eu)
Open finance framework – enabling data sharing and third party access in the financial sector
The EU digital finance strategy announced a proposal on open finance, which refers to the access and reuse of customer data, with consent, across a range of financial services. Open finance refers to third party service providers’ access to customer (both business and consumer) data with customer agreement across a wide range of financial services. Hence, the initiative aims to enable data sharing and third-party access for a wide range of financial sectors and products, in line with data protection and consumer protection rules. The Commission should adopt the proposal during the last quarter of 2022.
The proposal is available here: https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/13241-Open-finance-framework-enabling-data-sharing-and-third-party-access-in-the-financial-sector_en
A penalty fee of EUR 8,300 to a telemarketing company that sold health products for failure to comply with the order of the Data Protection Ombudsman
The Data Protection Ombudsman (DPO) has imposed an administrative penalty fee on a telemarketing company that sold health products, as the company had failed to comply with an earlier order from the DPO to execute a right of inspection. Due to the failure to comply with the DPO’s order to carry out the request properly and within a reasonable period of time an administrative fee of EUR 8,300 was imposed on the telemarketing firm. This is the first decision by the Office of Data Protection Ombudsman to issue a penalty fee for failing to comply with an order given by the Data Protection Ombudsman.
The decision is available here: https://tietosuoja.fi/-/telemarkkinointiyritykselle-seuraamusmaksu-tietosuojavaltuutetun-maarayksen-noudattamatta-jattamisesta-1
News by Sector
FUNDS AND FUND MANAGEMENT
Legislative amendments proposed to the Act on Common Funds and the Act on Alternative Investment Fund Managers
The Ministry of Finance has published a Government proposal on amendments to the Act on Common Funds and the Act on Alternative Investment Fund Managers (AIFMA). The purpose of the proposal is to nationally implement the so-called PRIIPS/UCITS Quick Fix package, which aims to avoid duplicate disclosure obligations after the transition period under the PRIIP Regulation expires at the end of this year. Although the UCITS Directive has been implemented into the Act on Common Funds, the transitional extension of the PRIIP Regulation has also been applied for alternative investment funds offered to non-professional investors. The amendments should enter into force on 1 January 2023 as required by the PRIIP Regulation.
The project is available here: HE 69/2022 vp (eduskunta.fi)
ESMA reminds fund managers of their obligations to investors amid the war in Ukraine
ESMA has released a Public Statement on the implications of Russia’s invasion of Ukraine on investment fund portfolios. The statement which aims to promote investor protection and convergence, provides overarching messages to fund managers including high level guidance on the appropriate action in case of exposures to Russian, Belarusian and Ukrainian assets, given valuation and liquidity uncertainties, the process fund managers should follow when evaluating these assets and whether it may be considered to use side pockets or similar arrangements to segregate these assets. ESMA will continue to closely monitor the situation and take or recommend any measures necessary to mitigate the impact of the Russian invasion of Ukraine on investment funds.
The Public Statement is available here: https://www.esma.europa.eu/sites/default/files/library/esma34-45-1633_public_statement_on_impact_of_war_in_ukraine_on_investment_funds.pdf
ESAs call for improvements in product descriptions intended for retail investors
The ESAs have issued a joint Supervisory Statement regarding the ‘What is this product?’ section of the key information document (KID) for packaged retail and insurance-based investment products (PRIIPs). ‘What is this product?’ needs to contain information on the type of the product, its objectives, the type of retail investor targeted, any insurance coverage and the term of the product, if known. The ESAs have identified a range of poor practices in how PRIIP manufacturers describe products under this section. Therefore, the ESAs set out the authorities’ expectations in each area to ensure that information is presented to retail investors in an adequate, clear and accessible manner.
The supervisory statement is available here: https://www.esma.europa.eu/sites/default/files/library/jc_2022_10_supervisory_statement_priips_kid.pdf
ESMA consults on notifications for cross-border marketing and management of funds
ESMA is consulting stakeholders on the information and templates to be provided, and used by firms, when they inform regulators of their cross-border marketing and management activities under the UCITS Directive and the AIFMD. The purpose of the draft ITS and RTS is to facilitate the process for notifying cross-border marketing and management activities in relation to UCITS and AIFs. The above will be achieved by defining harmonised information to be notified to competent authorities, and developing common templates to be used by management companies, UCITS and AIFMs. The consultation is open until 9 September 2022.
The consultation is available here: https://www.esma.europa.eu/sites/default/files/library/esma34-45-1471_cp_on_technical_standards_on_notification_letters.pdf
ESMA reports on supervision of costs and fees in investment funds
ESMA has published a Report on the Common Supervisory Action (CSA) on costs and fees for investment funds, that was carried out with National Competent Authorities (NCAs) during 2021. ESMA highlights, in the Report, the importance of supervision in ensuring investors are not charged with undue costs, considering its high impact on investors’ returns.
The Report can be found here:
ESMA proposes reforms to improve resilience of money market funds
Esma has issued an opinion containing proposed reforms to the regulatory framework for EU Money Market Funds (MMFs) under the Money Market Funds Regulation (MMFR). The proposals will improve the resilience of MMFs by addressing in particular liquidity issues and the threshold effects for constant net asset value MMFs.
The opinion is available here: https://www.esma.europa.eu/sites/default/files/library/esma34-49-437_finalreportmmfreview.pdf
ESMA and NCAs find room for improvement in Funds’ liquidity stress testing
ESMA has carried out a supervisory engagement with investment funds together National Competent Authorities (NCAs). The exercise focused on liquidity risk in corporate debt and real estate funds as required. ESRB and ESMA found that some funds experienced liquidity mismatches due to their setup (e.g. high redemption, no notice periods and no liquidity management tools) and only a few funds have adjusted their liquidity setup to counter changes in the investment strategy and liquidity management tools.
ESMA launches a common supervisory action with NCAs on MiFID II costs and charges
ESMA is launching a common supervisory action with national competent authorities (NCAs) on the application of MiFID II costs and charges disclosure rules across the European Union (EU). The purpose is to assess the application of the MiFID II requirements on costs and charges by firms and the focus will be on retail clients. ESMA believes that the initiative will help ensure consistent implementation and application of EU rules and enhance the protection of investors in line with ESMA’s objectives. The supervisory action will be conducted during 2022.
ESMA has published amended Q&As on the application of the AIFM Directive and the UCITS Directive
ESMA has published several amended Q&As which includes the Q&As on the application of the AIFM Directive and the UCITS Directive. For example, a new question on the performance reference period for the hurdle rate model in relation to ESMA’s guidelines on performance fees in UCITS and certain types of AIFs has been added.
The amended Q&As are available here: https://www.esma.europa.eu/sites/default/files/library/esma34_43_392_qa_on_application_of_the_ucits_directive.pdf and https://www.esma.europa.eu/sites/default/files/library/esma34-32-352_qa_aifmd.pdf
FIN-FSA has assessed the IT and security risk management of investment firms
During winter 2022, the FIN-FSA conducted a thematic assessment of IT and security risk management of investment firms. In the opinion of the Financial Supervisory Authority, the shortcomings identified on the basis of the thematic assessment do not significantly affect companies’ risk levels. However, the assessment showed individual shortcomings in compliance with some IT risk management regulations. Companies where deficiencies were identified have been advised to address these deficiencies in their operations.
FIN-FSA has issued regulations and guidelines 2/2022 and 3/2022 on compliance with EBA’s guidelines
The FIN-FSA has issued two new regulations and guidelines on the compliance with guidelines by EBA. These guidelines relate to sound remuneration policies and internal governance and apply to investment firms. The FIN-FSA’s regulations and guidelines entered into force on 16 May 2022.
Read more here: Määräykset ja ohjeet 2/2022 Finanssivalvonnan suositus EBAn sisäistä hallintoa ja ohjausta koskevien ohjeiden noudattamisesta (EBA/GL/2021/14) – 2022 – www.finanssivalvonta.fi and Määräykset ja ohjeet 3/2022 Finanssivalvonnan suositus EBAn palkitsemisjärjestelmiä koskevien ohjeiden noudattamisesta (EBA/GL/2021/13) – 2022 – www.finanssivalvonta.fi
ESMA has published its Final Report on the review of the Short Selling Regulation
ESMA has published its Final Report on the review of the Short Selling Regulation (SSR). The Final Report proposes targeted amendments to improve its operation, focused on clarifying the procedures for the issuance of short and long-term bans, ESMA’s intervention powers, the prohibition of naked short selling and the calculation of net short positions (NSPs) and their publication.
The Final Report can be found here: https://www.esma.europa.eu/sites/default/files/library/esma70-448-10_final_report_-_short_selling_regulation_review.pdf
ESMA has made recommendations to improve investor protection
ESMA advised the European Commission on certain aspects relating to retail investor protection. In the advice ESMA puts forward proposals that will make it easier for investors to get the key information they need to take well-informed investment decisions, whilst also protecting them from aggressive marketing techniques and detrimental practices. The proposals put forward aim at maintaining a high level of investor protection, while ensuring that retail investors can benefit from digitalisation opportunities.
Amendment to the FIN-FSA’s regulations and guidelines 9/2014 on the introduction of the LEI code
The FIN-FSA has amended its regulations and guidelines 9/2014 which nationally implement the Guidelines of the European Insurance and Occupational Pensions Authority (EIOPA) and the Recommendation of the European Banking Authority (EBA) on the use of the Legal Entity Identifier (LEI). The section of the FIN-FSA regulations and guidelines applicable to the insurance sector has been updated since EIOPA has issued revised Guidelines on the use of LEI (EIOPA BoS-2021/456). The revised EIOPA Guidelines clarified the scope of application, taking into consideration the evolving and increasing relevance of the LEI. In addition, the revision aimed at simplifying and updating, where relevant, the text thereof, with a view to facilitate and further promote the use of LEI as unique identification code for legal entities under the supervisory remit of the competent authorities. The revised FIN-FSA regulations and guidelines entered into force on 1 July 2022.
Read more here:
EIOPA’s consultation on two supervisory statements on insurance: systemic events and cyber exposures
The FIN-FSA has published a supervisory statement on two consultations by the European Insurance and Occupational Pensions Authority (EIOPA). EIOPA has commenced two consultations relating to its supervisory statements on exclusions related to systemic events such as pandemic, natural catastrophes or large cyber-attacks and the management of non-affirmative cyber exposures. The FIN-FSA notes that cyber risks may affect both individuals and undertakings. The FIN-FSA further sees that the Finnish insurance sector should note the consultation and if possible, take part in the consultation.
Read more here: https://www.finanssivalvonta.fi/tiedotteet-ja-julkaisut/valvottavatiedotteet/2022/eiopan-konsultaatiossa-kaksi-valvontakannanottoluonnosta-vakuuttamisesta–kyberriskit-ja-systeemiset-riskit/
EIOPA has finalised the revision of its Guidelines on Contract Boundaries and Guidelines on the Valuation of Technical Provisions
EIOPA has published two Final Reports on the revision of its Guidelines on Contract Boundaries and Guidelines on the Valuation of Technical Provisions. EIOPA has identified several divergent practices regarding the valuation of technical provisions since 2019 and indicated the corresponding need to analyse and further improve the consistency in their calculation. EIOPA has subsequently revised the aforementioned Guidelines to provide additional guidance on a limited number of topics considered crucial from a supervisory convergence perspective. The new and amended guidelines will be applicable from 1 January 2023.
The revised Guidelines are available here: https://www.eiopa.europa.eu/media/news/eiopa-finalises-revision-of-eiopa%E2%80%99s-guidelines-contract-boundaries-and-guidelines
EIOPA’s draft Guidelines on integrating the customer’s sustainability preferences in the suitability assessment under the IDD
The Guidelines are based on Commission Delegated Regulation (EU) 2021/1257 and aim at promoting a coherent application of the Delegated Regulation by insurance undertakings and insurance intermediaries, restricting the potential for the mis-selling of insurance products with regard to the sustainability preferences of consumers and promoting a more convergent approach by NCAs in the supervision of insurance undertakings and insurance intermediaries. EIOPA is mindful of the underlying complexity of the regulatory framework and has illustrated the guidelines with diagrams and flow charts to facilitate comprehension. The Guidelines should be applied from 2 August 2022.
The draft Guidelines are available here: https://www.eiopa.europa.eu/media/news/eiopa-consults-draft-guidelines-integrating-customer-sustainability-preferences
EIOPA calls for changes to stress test disclosure regime
EIOPA has published an opinion on the disclosure of individual results in the context of insurance stress tests. Despite the steps taken by EIOPA to address the industry’s concerns regarding individual disclosures, such as by requesting only a subset of balance sheet indicators to be published, the majority of (re)insurers continue to show reluctance. Therefore, EIOPA considers that a change in the legal framework allowing EIOPA to disclose the results of individual undertakings is the only way to obtain the disclosure of individual information. According to EIOPA, the ongoing review of Solvency II with a targeted amendment of Solvency II Directive would provide a straightforward solution.
EIOPA issues supervisory statement on supervision of run-off undertakings
EIOPA has published a Supervisory Statement on the supervision of run-off undertakings. The aim of the Statement is to ensure that a high-quality and convergent supervision is applied to run-off undertakings and portfolios while taking into account their specific nature and risks, the principle of proportionality and the prudent person principle. Over the last years EIOPA has observed a number of supervisory issues and challenges in the supervision of run-off portfolios or undertakings. Therefore, the Supervisory Statement sets out supervisory expectations for the supervision of runoff undertakings in the context of portfolio transfers, acquisitions of qualifying holdings and mergers (ownership changes) as well as on-going supervision.
The Supervisory Statement is available here: https://www.eiopa.europa.eu/sites/default/files/publications/supervisory_statements/supervisory_statement_on_supervision_of_run-off_undertakings.pdf
EIOPA assesses European insurers’ exposure to physical climate change risks
EIOPA has published a report that presents the first results based on a large data collection exercise from the industry and focuses on property, content and business interruption insurance against windstorm, wildfire, river flood and coastal flood risks. These risks have been identified as the most relevant and potentially most disruptive for the European property insurance business under a current and forward-looking perspective. The report aims to provide an initial assessment of the European insurance sector’s exposure to climate-related hazards and inform future work in this relatively new field.
CREDIT AND PAYMENT INSTITUTIONS
Amendments to the Credit Information Act approved – retention period for payment default entries is limited to one month as of December
The Parliament approved amendments to the Credit Information Act (527/2007, as amended), as well as some other laws stemming from the EU data protection regulation, on 6 April 2022. At the same time, a reduction in retention periods for certain payment default entries regulated under the Credit Information Act was approved. The change will limit the retention period of the most common payment default entries (related to both personal and business credit information) to one month. The amendments entered into force on 1 June 2022, except for changes to the retention periods, which will come into effect six months later, i.e. at the beginning of December.
Feasibility study on adding account transaction information to the bank and payment accounts monitoring system
The Ministry of the Interior will carry out a feasibility study concerning the inclusion of the account transaction information to the bank and payment accounts monitoring system. The bank and payment account monitoring system is regulated under the Act on the Bank and Payment Accounts Monitoring System (571/2019, as amended). The purpose of the study is to monitor the current state and development areas of competent authorities’ access to account transaction information, and implementation alternatives.
The initiative’s website and link to issuing decision can be found here: https://intermin.fi/hankkeet/hankesivu?tunnus=SM004:00/2022
FIN-FSA: Banks must ensure the availability of non-digital services and reasonable pricing of services
The FIN-FSA has published a report on basic banking services 2021. In 2021, the total of fees of basic banking services grew – users of digital services continued to have the most affordable banking fees. The FIN-FSA urges banks to ensure that basic banking services are available to those with no access to digital services, at a reasonable price and to ensure reasonable queuing times at their offices. Further, the FIN-FSA emphasizes that availability of cash must be ensured.
EBA publishes final Report on the amendment of its technical standards on the exemption to strong customer authentication for account access
EBA has published its final Report on the amendment of its Regulatory technical standards (RTS) under the Payment Services Directive (PSD2). The changes introduce a new mandatory exemption to SCA that will require account providers not to apply SCA when customers use an account information service provider (AISP) to access their payment account information, provided certain conditions are met. The amendment aims to reduce frictions for customers using such services and to mitigate the impact that the frequent application of SCA and the inconsistent application of the current exemption have on AISPs’ services. The amendments to the RTS are envisaged to apply 7 months after the publication of the amending RTS in the Official Journal of the EU.
The news is available here: https://www.eba.europa.eu/eba-publishes-final-report-amendment-its-technical-standards-exemption-strong-customer
Proposed amendments to the Decree on annual accounts, consolidated financial statements and annual report of credit institutions and investment firms
The Ministry of Finance is proposing certain amendments to the Decree of the Ministry of Finance on the financial statements, consolidated financial statements and annual report of credit institutions and investment firms (76/2018) (the “Decree”). The amendments seek to make accounting policies more flexible and appropriate and harmonize the presentation of national information in relation to IFRS. The FIN-FSA is also contemplating to amend its regulations and guidelines 2/2016. The proposed changes to the Decree are endorsed by Finance Finland but Finance Finland notes, however, that several obsolete sections would still remain.
The proposal can be found here: https://www.lausuntopalvelu.fi/FI/Proposal/Participation?proposalId=6caf6c33-b1a6-4746-a316-7f7d69af5e01