International cooperation

Estonia’s financial stability directly depends on the harmonisation of supervision methods and the efficient exchange of information with the other member states of the European Union. Therefore, the Financial Supervision Authority closely collaborates with the supervision authorities of the other states of the European Union. The Financial Supervision Authority has concluded cooperation agreements with several supervision authorities.

As a member of various international committees and organisations, the Financial Supervision Authority participates in the work of networks of supervision authorities. The Financial Supervision Authority is able to influence international supervision practices and policies primarily through the work of the supervision authorities of the European Union’s financial sector. The European Banking Authority, the European Insurance and Occupational Pensions Authority and the European Securities and Markets Authority
were established in consequence of the reforms to the structure of supervision of the financial sector in the European Union. The reform was initiated by the European Commission, following the recommendations of a Committee of Wise Men, chaired by Mr. de Larosière, and supported by the European Council and Parliament.

Before and during the financial crisis in 2007 and 2008, the European Parliament has called for a move towards more integrated European supervision in order to ensure a true level playing field for all actors at the level of the European Union and to reflect the increasing integration of financial markets in the Union. As a result, the supervisory framework was strengthened to reduce risk and severity of future financial crises. A European System of Financial Supervisors comprises three European Supervisory Authorities, one for the banking sector, one for the securities sector and one for the insurance and occupational pensions sector, as well as the European Systemic Risk Board.

The task of the EBA or the European Banking Authority is to advise the European Commission on the development of legislation regulating the banking marketing, foster cooperation between institutions performing banking supervision and reinforce harmonisation and implementation of the related laws in the member states. The European Banking Authority was established by the European Parliament and of the Council of 24 November 2010. The EBA has officially come into being as of 1 January 2011 and has taken over all existing and ongoing tasks and responsibilities from the Committee of European Banking Supervisors (CEBS).

The task of the EIOPA or the European Insurance and Occupational Pensions Authority is to advise the European Commission with regard to the development of legislation regulating the insurance market and to ensure the consistency of respective laws and their implementation in the member states. EIOPA has officially come into being as of 1 January 2011 and has taken over all existing and ongoing tasks and responsibilities from the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS).

The task of the ESMA or the European Securities and Markets Authority is to advise the European Commission in respect of the development of legislation regulating the European securities market, foster cooperation between institutions performing securities supervision and harmonise the contents of the legislation in this field as well as their implementation in member states. ESMA has officially come into being as of 1 January 2011 and has taken over all existing and ongoing tasks and responsibilities from the Committee of European Securities Regulators (CESR).

In addition to the institutions of the European Unions, the Financial Supervision Authority has also a membership status in the global organisations IAIS (International Association of Insurance Supervisors), the international organisation engaged in the financial stability of bank accounting BIS (Bank of International Settlements), including the Central and Eastern European Regional Committee of BIS, BSCEE (Group of Banking Supervisors from Central and Eastern Europe) and a member of IOSCO (International Organisation of Securities Commission).

Employee in charge Gerle Reinumägi: gerle dot reinumagi at fi dot ee