Financial Markets Lecture 9 - PDF

**Fundamentals of Financial Markets and Institutions** **05.02.2025 -- Lecture 9** Finnish financial supervisory authorithy (FIN-FSA): Finlands authority for superivison of financial and insurance sectors. - Banks, insurance, pension companies. Supervised by the parliamentary supervisory co...

**Fundamentals of Financial Markets and Institutions** **05.02.2025 -- Lecture 9** Finnish financial supervisory authorithy (FIN-FSA): Finlands authority for superivison of financial and insurance sectors. - Banks, insurance, pension companies. Supervised by the parliamentary supervisory council. Objective: safeguard stability and confidence, protect customers, investors and insured benefots -\> regulation + supervision. FIN-FSA supervises: 1. Capital markets supervision 2. Banking supervision 3. Digitalisation and analysis 4. Insurance supervision 5. Legal unit 1. [Capital markets supervision] - Investment service providers - Fund management companies - Investment based crowdfunding intermediaries - Securitisation auditors - Stock exchange Checking information, disclosure, reporting, trading and investigates market abuses. 2. [Banking supervision] - Credit institutions Checking for capital adaquecy, liqudiity, risk management, reporting. 3. [Digitalisation and analysis] - All FIN-FSA supervised entities Checking fiinancial analysis, anti money laundering, payment services and IT supervision 4. [Insurance supervision ] - Employee pension insurance providers, pension, unemployment funds. Checking for protection of insured benefits, solvency, risk-taking, stable operations. 5. [Legal unit] Preapres administrative sanctions, regulations and guildlines, maintains register. European supervisory cooperation, meaning they work with the EBS and other european supervisory authorities. Single supervisory mechanism (SSM): - ECB holds main responsibility for common banking supervision. - National level supervisory authorities oversee banks according to the same principles and regulations. - While the largest banks are still supervised by the ECB. Overall the FIN-FSA monitors at national level according to ECB regulations, make sure activities of supervised entities are of sound level, and conducts regular inspections. A graph of different colored lines AI-generated content may be incorrect. The number and size of funds in Finland has been growing.  Consequently, the number of assets under management has been growing. Fund regulation - Harmonized fund regulation across Europe - UCITS directive sets standards and requirements for UCITS managers and funds. - Strong focus on investor protection and product regulation. - Open ended as they are marketed to retail investors and open to daily subscriptions and redemptions. Altnerative Investment Fund Directive (AIFMD) - After the GFC, the concerns of hedge funds and other alternative funds became apparent -\> regulation (AIFMD). AIF: comllective investmetment undertaking, raising capital, from a number of investors, with a view to invest in accordance with a defined investment policy. Sustainable finance regulation - Must has SFDR to prevent green washing, increase transparency. Packaged retail and insurance based investment products (PRIIP) regulation: - Offered to retail investors. Supervision in fund manangement - Supervision - Annual questionnaire - Thematic reviews - On-site inspections - Authorisation and registration processes - Fund rules and changes in them - Reporting