Supervisory Board confirmed the budget of the Financial Supervision Authority and appointed a new Management Board member
On Friday, 9 November 2007, the Supervisory Board of the Financial Supervision Authority confirmed the budget of the Financial Supervision Authority for 2008, approved supervision fees and expanded the membership of the Management Board.
The main purposes of the activities of the Financial Supervision Authority for the next year is increasing the efficiency and professionalism of supervision and enhancing the financial literacy of consumers. As well as developing information technology solutions for supervision, with the aim of identifying possible market violation cases in a more operative manner.
The Supervisory Board of the Financial Supervision Authority extended the terms of contracts of services of two current members of the Management Board, Andres Kurgpõld and Kaido Tropp, by three years, as the term of the contracts ends on 31 December 2007. In addition, the Supervisory Board appointed Kilvar Kessler, who currently works as an attorney at law in the law office of Tark & Co, as the new member of the Management Board as of 1 January 2008. Kilvar Kessler has extensive work experience in developing the legislation in the investment and securities area, including taking the Markets in Financial Instruments Directive (MiFID) over into Estonian legislation. Kilvar Kessler also has experience in securities supervision with the Securities and Exchange Commission (SEC) in the United States of America. Kilvar Kessler will start performing the obligations of a member of the Management Board as of 1 January 2008 and, pursuant to his work experience, his area of responsible shall be supervision and legislative drafting of the securities market field of the Financial Supervision Authority.
As of 1 January 2008, the Management Board of the Financial Supervision Authority will continue with four members: Chairman of the Management Board Raul Malmstein, members of the Management Board Kilvar Kessler, Andres Kurgpõld and Kaido Tropp. According to the Financial Supervision Authority Act the Management Board of the Financial Supervision Authority consists of three to five members.
The budget volume of the Financial Supervision Authority for 2008 is MEEK 60.7. The income of the authority is made up of supervision fees paid by supervised entities, including Estonian subsidiaries of financial institutions of foreign countries.
The Supervisory Board decided to reduce the supervision fees of non-life insurance and life insurance companies, investment firms and management companies. It was decided to make a proposal to the Minister of Finance to establish rate of supervision fees for the next year as follows: 0.0112% of the assets of a credit institution in case of credit institutions; 0.08% of the total amount of gross payments of an insurer in case of non-life insurance companies; 0.02% of the total amount insurance payments in case of life insurance companies; 0.8% of the total amount of commission fees gathered by an insurance broker in case of insurance brokers; 0.01% of the assets of a management company in case of management companies in control of a money market fund, 0.007% of the assets of a management company in case of management companies in control of pension funds and 0.012% of the assets of a management company in case of management companies in control of investment funds: 0.017% of the assets of the venture capital funds in control in case of management companies in control of venture capital funds.
The list of supervised entities supervised by the Financial Supervision Authority is available on the website of the authority www.fi.ee > Supervised entities
The Chairman of the Financial Supervision Authority is the Minister of Finance Ivari Padar and members are the President of the Bank of Estonia Andres Lipstok, expert on insurance activities Matti Klaar, expert on auditory activities Ruut Mägi, Vice President of the Bank of Estonia Andres Sutt and Vice Chancellor of Financial Policy of the Ministry of Finance Veiko Tali.