The Supervisory Board of the Financial Supervision Authority approved the Annual Report and the strategy for the subsequent five years
In the meeting on 25 March 2011, The Supervisory Board of the Financial Supervision Authority approved the Annual Report 2010 and the strategy of the Authority that defined the future priorities of the Estonian financial supervision for 2011-2015.
In 2010, the activities of the Financial Supervision Authority were focused inter alia on developing the supervision of the banks’ credit risk area and of pension funds, but also more broadly on the development of the risk-based supervision methodology for funds.
Revenues of the Financial Supervision Authority from supervisory fees and other income totalled 59,4 million kroons, and expenditures totalled 59.2 million kroons in 2010.
The Financial Supervision Authority’s Strategy 2011-2015 sets the following primary objectives for the financial supervisory work: as fast and comprehensive processing as possible of potential infringements occurring in the financial market on the one hand and the improvement of capacities of financial institutions themselves in preventing market abuse on the other hand.
One of the most important priorities for the Financial Supervision Authority in the nearest future will be the establishment of higher standards for the management of risks of market participants, especially in the supervision of pension funds, where it is envisaged inter alia to perform regular risk-based analyses of investment portfolios of pension funds. The Financial Supervision Authority will also focus its attention on the organizational design of financial institutions in order to ensure that supervised entities or their employees have no possibility, provided by the complex organization and unclear division of responsibilities, to prioritize their own interest over the interests of their clients. In addition, the Financial Supervision Authority will continue to pursue towards higher pecuniary punishment rates than those currently applied in the financial sector, in order to ensure the ability of the Financial Supervision Authority to intervene more strongly, if appropriate, and to provide better guidance to the market.
One of the objectives of further actions of the Financial Supervision Authority is to enhance its influence in the cooperation with supervisory authorities of other countries, especially of Nordic and Baltic countries, and in the cooperation network of EU uniform financial supervisory authorities.
The Financial Supervision Authority considers it of utmost importance to ensure the better protection of consumers of financial services through contributing to the establishment of an institution solving extra-judicial disputes as well as to the improvement of general financial literacy.