Financial Supervision Authority (Finantsinspektsioon)

The Financial Supervision Authority (Finantsinspektsioon) is an independent government agency established in 2002. Operating under the supervision of the Estonian government, it functions autonomously with its own budget and legal authority. Its primary goal is to oversee the stability, transparency, and integrity of Estonia’s financial system, ensuring that financial institutions comply with laws and regulations and protecting the interests of consumers and investors.

The regulator acts as a key pillar in the country’s economic infrastructure, promoting trust and confidence in financial markets. By working closely with European Union mechanisms, Finantsinspektsioon enhances Estonia’s integration into the broader financial ecosystem.

Core functions of the Financial Supervision Authority

• Supervising financial institutions. It oversees banks, insurance companies, investment firms, pension funds, and other entities within the financial sector to ensure compliance with laws and regulations.
• Participating in European supervisory mechanisms. As part of the EU’s Single Supervisory Mechanism (SSM) and Single Resolution Mechanism (SRM), it collaborates on cross-border regulatory matters.
• Combating financial crime. The authority develops and enforces policies to prevent money laundering, fraud, and terrorism financing within Estonia’s financial sector.
• Protecting consumers and investors. It safeguards the interests of individuals and businesses by ensuring financial institutions operate transparently and responsibly.
• Enhancing financial stability. By identifying and mitigating systemic risks, the regulator contributes to a secure and resilient financial system.

Finantsinspektsioon ensures that the financial system operates smoothly, bolstering both domestic and international confidence in Estonia’s financial sector. Its work is crucial to fostering a stable economic environment and maintaining the integrity of financial markets.

By implementing robust regulatory measures and engaging in international cooperation, the Financial Supervision Authority continues to play a pivotal role in Estonia’s financial landscape.