Supervisory Board of the Estonian Financial Supervision Authority approved agency's 2005 budget and rates for share portions of supervision fee
The Supervisory Board of the Estonian Financial Supervision Authority (EFSA) approved at its meeting on November 26 the budget of 44,316,641 kroons for the next year. The rates for shares of supervision fee will decrease due to the rapid growth of the financial sector.
According to the Financial Supervision Authority Act, the agency is financed by the supervised market participants. "Compared to 2004, we reduced the rates for the share of supervision fee in all sectors where it already was not set by law to a minimal level. We feel that if rapid growth of the financial sector continues, the minimum rates set by law should be revised as well. It would certainly have a positive effect on the market," commented Andres Trink, management board chairman of the EFSA.
According to the decision of the Supervisory Board, revenues of the 2005 budget are a prepayment of the supervision fee in total of 37,450,671 kroons, the final payment of the supervision fee in total of 2,715,492 kroons, an estimated interest on investment of financial resources in total of 500,000 kroons and an appropriation from the budgetary reserve in total of 3,650,478 kroons, without any additional stipulations.
The EFSA's 2005 budget is designed to implement the strategy approved last spring. The main goal of the strategy is to create supervision competitive on the single European financial services market since this would promote rapid and stable development of financial services in Estonia. Cross-border supervision is becoming increasingly more important and due this, the need to participate in cooperation with European financial supervision, said Trink. "Organization wise, we do not plan an increase of staff, but at the same time it is still important to ensure high expertise and motivation of our people," he added.
The Supervisory Board of the EFSA includes Taavi Veskimägi, the Minister of Finance (chairman), Vahur Kraft, President of the Bank of Estonia, Matti Klaar, Ruut Mägi, Andres Sutt and Veiko Tali.
The list of market participants under FSA supervision is posted on the agency's website at www.fi.ee > Supervised entities .
The Supervisory Board of the EFSA submitted to the Minister of Finance a proposal to impose the following rates for the shares of supervision fee:
- Credit institutions or Estonian branches of foreign credit institutions - 0.018 per cent of the assets of credit institution or corresponding Estonian branch;
- Investment companies or Estonian branches of foreign investment companies - 0.40 per cent of the assets of investment institution or corresponding Estonian branch;
- Fund management companies or Estonian branches of foreign fund management companies: concerning the management of mandatory pension fund assets 0.02 per cent of, and concerning the management of voluntary pension fund and investment fund assets 0.05 per cent of, the assets managed by a fund management company or corresponding Estonian branch.
- Insurers offering non-life insurance or reinsurance thereof and Estonian branches of corresponding foreign companies - 0.15 per cent of gross insurance premiums earned by an insurer or corresponding Estonian branch;
- Insurers offering life insurance or reinsurance thereof and Estonian branches of corresponding foreign companies - 0.05 per cent of calculated assets of an insurer or corresponding Estonian branch;
- Insurance brokers or Estonian branches of corresponding foreign company - 1.2 per cent of gross income received from commission by an insurance broker or corresponding Estonian branch.
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