Finantsinspektsiooni seadus (FIS)

§ 1. Scope of application of Act

This Act determines the objective of state financial supervision and financial crisis resolution, and the legal status, the bases for the activities, including the organisation of international cooperation, and the bases and procedure for the financing of the Financial Supervision Authority.

§ 2. State financial supervision and resolution

(1) For the purposes of this Act, state financial supervision (hereinafter financial supervision) means supervision over the subjects of state financial supervision (hereinafter subjects of financial supervision) and the activities provided for in this Act, the Credit Institutions Act, the Creditors and Credit Intermediaries Act, the Insurance Activities Act, the Investment Funds Act, the Funded Pensions Act, the Securities Market Act, the Motor Insurance Act, the Payment Institutions and E-money Institutions Act, the Covered Bonds Act, the Securities Register Maintenance Act, the Market in Crypto-Assets Act, the Credit Servicers and Credit Purchasers Act, Credit Information Sharing Act, and legislation established on the basis thereof.

(2) For the purposes of this Act, a subject of financial supervision is a person to whom the right to operate in the corresponding field of activity has been granted by a competent authority on the basis of an Act specified in subsection 1 of this section.

(3) The financial crisis resolution for the purposes of this Act shall mean the conducting of the resolution proceedings and the implementation of the resolution tools or powers prescribed by the Financial Crisis Prevention and Resolution Act.

§ 3. Objectives of financial supervision and financial crisis resolution

(1) Financial supervision is conducted in order to enhance the stability, reliability, transparency and efficiency of the financial sector, to reduce systemic risks and to promote prevention of the abuse of the financial sector for criminal purposes, with a view to protecting the interests of clients and investors by safeguarding their financial resources, and thereby supporting the stability of the Estonian monetary system.

(2) The objective of the financial crisis resolution is to avoid adverse effects on financial stability arising from the insolvency of credit institutions, investment firms and central counterparties, to protect public funds and the assets of depositors, investors and other clients, and to ensure the continuity of the critical functions of credit institutions investment firms and central counterparties.

(3) Financial supervision is conducted and financial crisis is resolved only in the public interest.

§ 4. Financial Supervision Authority

(1) The Financial Supervision Authority (hereinafter Supervision Authority) is an agency with autonomous competence and a separate budget, which operates at Eesti Pank and the directing bodies of which act and submit reports pursuant to the procedure provided for in this Act.

(2) The Supervision Authority conducts financial supervision and crisis resolution functions in the name of the state.

(3) The Supervision Authority is independent in the conduct of financial supervision and performance of crisis resolution functions.

(4) The Supervision Authority shall ensure independence of the financial supervision and crisis resolution functions to a necessary extent.

§ 5. Principles of activities of Supervision Authority

(1) The Supervision Authority shall operate pursuant to legislation and the internationally recognised principles relating to financial supervision and shall act openly and transparently and apply the principles of sound administration. The Supervision Authority shall use the assets at its disposal prudently.

(2) The frequency of supervisory activities and the methodology applied by the Supervision Authority take account of the size of the subject of financial supervision, the effect of its activity on the financial system as well as the type, extent and complexity of the activity, based on the principle of proportionality. Upon application of administrative coercion, the Supervision Authority takes into account the nature, duration and repetition of risks and potential violation, amount of liability, previous violations of law, the economic potential of the person responsible for a violation of law, including the total turnover of the legal person, the amount of the profit gained or losses avoided, or the annual income of the natural person, as well as the amount of damage that has been incurred or may have been incurred and the potential effect on the stability of the financial system, and the scope of cooperation with the supervisory authority.

(3) The Supervision Authority in performing the supervision and implementation of the resolution tools and powers shall consider the potential effect of its decisions and acts on the stability of the financial system of other states which are contracting parties to the EEA agreement (hereinafter Contracting State), primarily in connection with systemic risks.

§ 5¹. Financial crisis resolution unit and its functions

(1) The duties of the financial crisis resolution unit formed in the Supervision Authority consist of the resolution preparation and planning and the implementation of the resolution tools and powers pursuant to the provisions of the Financial Crisis Prevention and Resolution Act, the Credit Institutions Act or Regulation (EU) 2021/23 of the European Parliament and of the Council of 16 December 2020 on a framework for the recovery and resolution of central counterparties and amending Regulations (EU) No 1095/2010, (EU) No 648/2012, (EU) No 600/2014, (EU) No 806/2014 and (EU) 2015/2365 and Directives 2002/47/EC, 2004/25/EC, 2007/36/EC, 2014/59/EU and (EU) 2017/1132 (OJ L 22, 22.01.2021, pp. 1–102) with regard to the following persons:

1) credit institutions;

2) investment firms;

3) persons belonging to the same consolidation group with credit institutions or investment firms;

4) central counterparties.

(2) The employees of the Supervision Authority who perform the duties arising from subsection 1 of this section shall form a separate structural unit. The Supervision Authority shall ensure that there is operational independence between the resolution function and the supervisory function. The Supervision Authority shall prevent a possibility of conflicts of interest between the financial crisis resolution function and other functions.

(3) The persons performing the financial crisis resolution functions and the supervisory functions of the Supervision Authority shall closely cooperate in the preparation, planning and implementation of recovery and resolution.

(4) The structural separation and operational independence of the financial crisis resolution unit, and the management of conflicts of interests which may arise and the exchange of information shall be specified in more detail in the relevant internal rules of the Supervision Authority.

§ 7. Competence of supervisory board

(1) The activities of the Supervision Authority shall be planned and the management thereof shall be monitored by the supervisory board of the Supervision Authority (hereinafter the supervisory board).

(2) The supervisory board shall:

1) approve the operating strategy of the Supervision Authority at the proposal of the management board of the Supervision Authority (hereinafter the management board);

2) approve, on the proposal of the management board, the budget of the Supervision Authority and, in the case specified in § 37 of this Act, the supplementary budget, and make a proposal to the minister in charge of the policy sector concerning the rate of the share of the supervision fee calculated on the basis of assets for the following budgetary year;

2¹) approve of the use of the budgetary surplus;

3) approve, on the proposal of the management board, the bases for developing the structure of the Supervision Authority and for the payment of remuneration, and the internal rules provided for in subsection 4 of § 5¹ of this Act;

4) approve of the size of the membership of the management board, appoint the members of the management board and elect the chairman of the management board from among the members;

5) remove members of the management board;

5¹) approve, on the proposal of the management board, the internal auditor of the Supervision Authority and entry into or termination of an employment contract with the internal auditor;

5²) approve, on the proposal of the management board, the procedure for the conduct of the internal audit of the Supervision Authority;

6) decide on entry into, amendment and termination of contracts of service with the chairman and members of the management board, and conditions for applying a waiting period;

7) approve the size of the remuneration and additional sums payable and the social guarantees applicable to the chairman and members of the management board;

8) decide on the filing of claims against the chairman or a member of the management board concerning compensation for damage caused by him or her to the state through violation of a legal act or his or her obligations;

9) approve the annual report of the Supervision Authority submitted by the management board;

10) approve the rules for the activities of the supervisory board;

11) decide on other matters placed in the competence of the supervisory board by law;

12) establish internal rules for the avoidance of conflicts of interest among members of the management board and for the disposal of financial instruments.

§ 8. Members of supervisory board

(1) The supervisory board shall consist of six members, two of whom are members by virtue of office and four of whom are appointed members.

(2) The minister in charge of the policy sector and the President of Eesti Pank are members of the supervisory board by virtue of office.

(3) One-half of the appointed members of the supervisory board shall be appointed and removed by the Government of the Republic on the proposal of the minister in charge of the policy sector and one-half by the Supervisory Board of Eesti Pank on the proposal of the President of Eesti Pank.

§ 9. Requirements for members of supervisory board

(1) Appointed members of the supervisory board shall be Estonian citizens with active legal capacity, an academic degree recognised by the state or education corresponding to such level, an impeccable professional and business reputation, and the experience necessary to manage an agency in the financial or public sector.

(2) The following shall not be appointed as members of the supervisory board:

1) persons under preliminary investigation for or accused of a criminal offence for which the law prescribes imprisonment or persons with a criminal record for criminal official misconduct or any other intentionally committed criminal offence;

2) persons whose previous unlawful act or omission has resulted in the bankruptcy, compulsory dissolution or revocation of the activity licence of a company;

3) bankrupts or persons who are subject to a prohibition on business or from whom the right to engage in economic activity has been taken away pursuant to law.

(3) The provisions of subsections 1 and 2 of § 32 and subsections 1 and 2 of § 32¹ of this Act concerning the avoidance of conflicts of interests and the provisions of § 34 of this Act concerning the duty to maintain confidentiality apply to members of the supervisory board.

§ 10. Term of authority of members of supervisory board

(1) The authority of a member of the supervisory board specified in subsection 2 of § 8 of this Act shall expire upon the expiry of his or her authority in the office by virtue of which he or she belongs to the supervisory board.

(2) The term of the authority of appointed members of the supervisory board shall be three years as of their appointment.

(3) Upon expiry of the term of the authority of an appointed member, he or she shall perform his or her duties until the appointment of a new member.

(4) Upon expiry of the term of the authority or the removal or death of an appointed member of the supervisory board, the person who initially appointed the member shall appoint a new member of the supervisory board within a reasonable period of time.

§ 11. Removal of member of supervisory board

(1) An appointed member of the supervisory board is removed before the expiry of his or her term of authority within three months after receipt of a corresponding written application from the member.

(2) An appointed member of the supervisory board shall be immediately removed before the expiry of his or her term of authority if:

1) a judgment of conviction made against him or her in a criminal matter enters into force;

2) they violate the provisions of subsection 1 or 2 of § 32 or subsections 1 and 2 of § 32¹ or § 34 of this Act;

3) a bankruptcy order enters into force or a prohibition on business is applied with regard to him or her or the right to engage in economic activity is taken away from him or her pursuant to law;

4) he or she does not comply with the requirements established by this Act for appointed members or submits false information concerning compliance with such requirements.

(3) An appointed member of the supervisory board may be removed before the expiry of his or her term of authority if he or she suffers from an illness lasting for more than four months or if there is any other good reason due to which he or she is unable to perform his or her duties.

§ 12. Chairman of supervisory board

(1) The minister in charge of the policy sector shall be the chairman of the supervisory board.

(2) The chairman of the supervisory board shall organise the activities and administration of the supervisory board, call and chair the meetings of the supervisory board, organise the taking of minutes at the meetings and disclosure of the resolutions of the supervisory board and enter into, amend, suspend and terminate contracts of service with the chairman and members of the management board on the basis of a resolution of the supervisory board.

(3) In the absence of the chairman of the supervisory board, the duties of the chairman shall be performed by the eldest member of the supervisory board present at the meeting.

§ 13. Calling meetings of supervisory board

(1) Regular meetings of the supervisory board shall be held at least once every three months.

(2) Extraordinary meetings of the supervisory board shall be called on the initiative of the chairman of the supervisory board, at the request of at least two members of the supervisory board or the chairman of the management board. The request shall set out the matters to be decided and a proposal concerning the time of the meeting.

(3) A notice concerning an ordinary meeting of the supervisory board shall be sent to the members of the supervisory board at least ten days before the date of the meeting. Members of the supervisory board shall be notified of an extraordinary meeting of the supervisory board at least one working day in advance.

(4) A notice calling a meeting of the supervisory board shall set out the time and place of the meeting and the agenda together with the names of the persons presenting reports.

§ 14. Organisation of activities of supervisory board

(1) Members of the supervisory board shall personally participate in the activities of the supervisory board.

(2) Meetings of the supervisory board shall be closed unless the supervisory board decides otherwise.

(3) Members of the management board have the right to participate in the meetings of the supervisory board unless the chairman of the supervisory board decides otherwise.

(4) Issues relating to meetings of the supervisory board shall be provided for in the rules for the activities of the supervisory board, including:

1) the procedure for the election of the chairman of the management board;

2) the procedure for giving notice of meetings of the supervisory board;

3) the procedure for communicating documents concerning the agenda of a meeting to the members of the supervisory board;

4) the information to be recorded in the minutes of a meeting, including the content of the resolutions of the supervisory board and issues relating to the recording of voting results;

5) the procedure for adoption of resolutions of the supervisory board without calling a meeting, the information to be entered in records of votes and the procedure for preservation of draft resolutions and the positions and dissenting opinions of the members of the supervisory board.

(5) Members of the supervisory board shall receive monthly remuneration in the amount of twice the minimum monthly wage. The minister in charge of the policy sector shall not receive remuneration.

(6) The technical administration of the activities of the supervisory board shall be ensured by the management board.

§ 15. Resolutions of supervisory board

(1) Each member of the supervisory board shall have one vote. Unless otherwise provided by this Act, members of the supervisory board do not have the right to abstain from voting or to remain undecided.

(2) A resolution of the supervisory board is adopted if at least four members of the supervisory board vote in favour. In matters specified in clauses 3 and 10 of subsection 2 of § 7 of this Act, a resolution of the supervisory board is adopted if all members of the supervisory board vote in favour.

(3) A member of the supervisory board gives notice to the supervisory board if he or she is directly or indirectly personally interested in a resolution to be debated. A member of the supervisory board is required to give notice if his or her child, parent, sister, brother, spouse, registered partner or cohabitee, or a parent, child, brother or sister of his or her spouse, registered partner or cohabitee is:

1) a member of the management board or a person to be appointed as a member of the management board, before voting on issues provided for in clauses 4–8 of subsection 2 of § 7 of this Act;

2) a person required to pay the supervision fee specified in subsections 2 and 3 of § 38 of this Act or a shareholder with a qualifying holding in such person or a person who exercises dominant influence on the management thereof in any other manner or is a member of its management body, before voting on issues provided for in clause 2 of subsection 2 of § 7 of this Act.

(4) If circumstances specified in subsection 3 of this section become evident, the member of the supervisory board shall abstain from voting unless all other members of the supervisory board who participate in the vote agree to his or her voting.

(5) A member of the supervisory board who votes against a resolution of the supervisory board has the right to submit his or her dissenting opinion.

§ 16. Minutes of meetings of supervisory board

(1) Minutes shall be taken of a meeting of the supervisory board.

(2) The chairman of the supervisory board and the secretary shall sign the minutes.

(3) Written dissenting opinions submitted by members of the supervisory board shall be annexed to the minutes. A notation shall be made in the minutes concerning the annexing of a dissenting opinion, and the member of the supervisory board who submitted the opinion shall confirm the notation with his or her signature.

(4) Minutes of meetings of the supervisory board shall be preserved in the Supervision Authority indefinitely. The management board shall organise storage of the minutes and annexes thereto and shall be responsible for their preservation.

§ 17. Adoption of resolution without calling meeting

(1) The supervisory board has the right to adopt resolutions without calling a meeting of the supervisory board if all members of the supervisory board consent thereto and hold a certificate for giving digital signatures issued pursuant to the requirements of the Electronic Identification and Trust Services for Electronic Transactions Act.

(2) The supervisory board does not have the right to adopt resolutions on issues specified in clauses 1, 4 or 10 of subsection 2 of § 7 of this Act without calling a meeting of the supervisory board.

(3) Upon adoption of a resolution of the supervisory board in the manner provided for in subsection 1 of this section, all proposals, positions and decisions shall be certified by digital signatures.

(4) The chairman of the supervisory board shall send a draft resolution to all members of the supervisory board and specify the term by which the members of the supervisory board must present their positions. If a member of the supervisory board fails to present his or her position within the specified term, he or she is deemed to have voted against the resolution.

(5) The provisions of § 15 of this Act apply to the adoption of resolutions.

(6) Minutes shall be taken of voting results and shall be sent immediately to all members of the supervisory board and to the management board.

§ 19. Members of management board

(1) The management board shall consist of three to five members.

(2) The members of the management board are appointed and removed by the supervisory board. As a general rule, a member of the management board is appointed through an open competition. A targeted offer to appoint a member of the management board is permitted if holding an open competition is not appropriate.

§ 20. Requirements for members of management board

(1) Members of the management board must be Estonian citizens with active legal capacity and an academic degree recognised by the state or education corresponding to such level, the expertise necessary to manage the Supervision Authority, professional suitability, an impeccable professional and business reputation and a total of at least five years’ work experience in the fields of finance, law, auditing or information technology or in public service in a position relating to such fields.

(2) The following shall not be appointed as members of the management board:

1) members of the supervisory board;

2) members of the Supervisory Board of Eesti Pank or the Executive Management of Eesti Pank;

3) auditors of Eesti Pank;

4) persons under preliminary investigation for or accused of a criminal offence for which the law prescribes imprisonment or persons with a criminal record for criminal official misconduct or any other intentionally committed criminal offence;

5) persons whose previous unlawful act or omission has resulted in the bankruptcy, compulsory dissolution or revocation of the activity licence of a company;

6) bankrupts or persons who are subject to a prohibition on business or from whom the right to engage in economic activity has been taken away pursuant to law.

(3) Members of the management board shall not be public servants nor work for any other employer or in a structural unit or independent division of Eesti Pank.

(4) The provisions of §§ 31–32¹ and § 34 of this Act apply to members of the management board.

(5) Before a person is appointed as a member of the management board, they must submit to the supervisory board in writing the information specified in subsections 7 and 8 of § 32 of this Act and their confirmation that no circumstances exist which according to this Act would preclude their appointment as a member of the management board. A member of the management board must notify the supervisory board immediately of any changes in the information submitted.

(6) A person who, within six months prior to taking office, has served as a member of the management board or supervisory board of a subject of financial supervision, or as the head of an organization representing the interests of the financial sector, may not be appointed as the chairman of the management board.

§ 21. Term of authority of members of management board

(1) The term of the authority of members of the management board is four years.

(2) The term of the authority of the member of the management board who is the chairman of the management board is five years.

(3) The authority of a member of the management board shall commence as of the date specified in the resolution concerning his or her appointment.

(4) The chairman of the supervisory board shall enter into contracts of service with the chairman and the members of the management board for the term of their authority and the contracts shall specify the rights and duties of the members of the management board and the remuneration for the performance of the duties of chairman or members of the management board.

(5) The terms specified in subsections 1 and 2 of this section may be extended by the decision of the supervisory board by up to one year in total if the corresponding member of the management board agrees to it. The term of office of the chairman and members of the management board as provided in this section may not exceed 14 years.

§ 22. Removal of member of management board

(1) A member of the management board is removed before the expiry of his or her term of authority not later than within three months after receipt of a corresponding written application from the member.

(2) A member of the management board shall be immediately removed before the expiry of his or her term of authority if:

1) a judgment of conviction made against him or her in a criminal matter enters into force;

2) he or she violates the provisions of subsection 1 or 2 of § 32 or § 34 of this Act;

3) a bankruptcy order enters into force or a prohibition on business is applied with regard to him or her or the right to engage in economic activity is taken away from him or her pursuant to law;

4) he or she does not comply with the requirements established by this Act for members of the management board or submits false information concerning compliance with such requirements.

(3) A member of the management board may be removed before the expiry of his or her term of authority if he or she suffers from an illness lasting for more than four months or if there is any other good reason due to which he or she is unable to perform his or her duties.

(4) Upon expiry of the term of the authority or the removal or death of a member of the management board, the supervisory board appoints a new member of the management board within a reasonable period of time. If a member of the management board is removed before the end of their term of authority for the reasons specified in subsections 1 or 3 of this section, the specific reasons for the removal may be disclosed if the removed member of the management board has given their consent thereto.

§ 22¹. Competence of management board members

(1) A member of the management board shall give orders on behalf of the Supervision Authority for:

1) requesting information relevant to financial supervision procedure from subjects of financial supervision and third persons;

2) requesting the appearance of subjects of financial supervision and third persons at the offices of the Supervision Authority in connection with provision of information relevant to financial supervision procedure;

3) conducting on-site inspection of financial supervision subjects.

4) suspension or cessation of trading in securities pursuant to the provisions of the Securities Market Act.

(2) If a person specified in clauses 1–3 of subsection 1 of this section fails to perform a task assigned thereto with an order, by the date specified in the order, a non-compliance levy in the amount specified in the order may be imposed on the person.

§ 23. Chairman of management board

(1) The supervisory board shall elect the chairman of the management board from among the members of the management board pursuant to the procedure provided for in the rules for the activities of the supervisory board. In the absence of the chairman of the management board, the duties of the chairman shall be performed by the eldest member of the management board unless otherwise ordered by a directive of the chairman of the management board.

(2) The chairman of the management board shall:

1) organise the activities of the management board;

2) call and chair the meetings of the management board and organise the taking of minutes at the meetings;

3) organise the administration of the Supervision Authority and the disclosure of the activities of the Supervision Authority;

4) organise the accounting of the Supervision Authority;

5) decide on the making of expenditure necessary for the activities of the Supervision Authority according to and to the extent of the budget approved by the supervisory board;

6) enter into, amend and cancel employment contracts with employees, and decide on the conditions for establishing a waiting period.

(3) The chairman of the management board shall represent the Supervision Authority in court and in relations with other state agencies, Eesti Pank, other persons, international organisations for financial supervision, foreign financial supervision authorities and other competent authorities, organisations and persons, unless stipulated otherwise in this Act.

(4) On the basis of a resolution of the management board, the chairman of the management board shall issue authorisation documents to other members of the management board, employees and third parties for representing the Supervision Authority.

§ 24. Calling meetings of management board

(1) Meetings of the management board shall be held when necessary but not less frequently than once a month.

(2) Meetings of the management board shall be called by the chairman of the management board on his or her own initiative or on the proposal of a member of the management board.

§ 25. Organisation of meetings of management board

(1) Meetings of the management board shall be closed unless the chairman of the management board decides otherwise.

(2) Issues relating to meetings of the management board shall be provided for in the rules for the activities of the management board, including:

1) the procedure for giving notice of meetings of the management board;

2) the procedure for communicating documents concerning the agenda of a meeting to the members of the management board;

3) the information to be recorded in the minutes of a meeting, including the content of the resolutions of the management board and issues relating to the recording of voting results;

4) the procedure for the adoption of resolutions of the management board without calling a meeting, the information to be recorded in records of votes and the procedure for preservation of draft resolutions and the positions and dissenting opinions of the members of the management board.

§ 26. Resolutions of management board

(1) Each member of the management board has one vote. Members of the management board do not have the right to abstain from voting or to remain undecided.

(2) A resolution of the management board is adopted if at least half of the members of the management board vote in favour. Upon an equal division of votes, the vote of the chairman of the management board governs.

(3) A member of the management board who votes against a resolution of the management board has the right to submit his or her dissenting opinion.

(4) A member of the management board gives notice to the management board if his or her child, parent, sister, brother, spouse, registered partner or cohabitee, or a child, parent, sister or brother of his or her spouse, registered partner or cohabitee is a member of the management body, procurator, other representative, head of the internal audit unit, chairman of the audit committee or auditor, or shareholder with a qualifying holding in a relevant subject of financial supervision, or a person exercising dominant influence over the management of such company in any other manner or a director or representative of an Estonian branch of a foreign company.

(5) Members of the management board specified in subsection 4 of this section may participate in voting if all other members of the management board participating in the vote are in favour thereof.

§ 27. Minutes of meetings of management board

(1) Minutes shall be taken of meetings of the management board.

(2) Written dissenting opinions submitted by members of the management board shall be annexed to the minutes. A notation shall be made in the minutes concerning the annexing of a dissenting opinion, and the member of the management board who submitted the opinion shall confirm the notation with his or her signature.

(3) The chairman of the management board and the secretary shall sign the minutes.

(4) Minutes of meetings of the management board shall be preserved in the Supervision Authority indefinitely.

§ 28. Adoption of resolution without calling meeting

(1) The management board has the right to adopt resolutions without calling a meeting of the supervisory board if all members of the management board consent thereto and hold a certificate for giving digital signatures issued pursuant to the requirements of the Electronic Identification and Trust Services for Electronic Transactions Act.

(2) Upon adoption of a resolution of the management board in the manner provided for in subsection 1 of this section, all proposals, positions and decisions shall be certified by digital signatures.

(3) The chairman of the management board shall send a draft resolution to all members of the management board and specify the term by which the members of the management board must present their positions. If a member of the management board fails to present his or her position within the specified term, he or she is deemed to have voted against the resolution.

(4) The provisions of § 26 of this Act apply to the adoption of resolutions.

(5) Minutes shall be taken of voting results and shall be sent immediately to all members of the management board.

§ 30. Employees of Supervision Authority

(1) Employees of the Supervision Authority (hereinafter employees) and members of the management board of the Supervision Authority shall be subject to labour laws unless otherwise provided by this Act.

(2) Persons may be employed by the Supervision Authority if they have the necessary education, sufficient experience and professional qualifications to perform their duties and an impeccable professional and business reputation.

(3) The following shall not be employed:

1) persons under preliminary investigation for or accused of a criminal offence or persons with a criminal record for criminal official misconduct;

2) persons whose previous unlawful act or omission has resulted in the bankruptcy, compulsory dissolution or revocation of the activity licence of a company;

3) bankrupts or persons who are subject to a prohibition on business or from whom the right to work in a particular position or operate in a particular area of activity has been taken away pursuant to law.

(4) Before an employment contract is entered into with a person applying for employment, they are required to submit to the management board a written overview of their education, qualifications, in-service training, professional experience and business activities, the information specified in subsection 7 of § 32 of this Act, and their confirmation that no circumstances exist which according to this Act would preclude their right to be an employee.

(5) Upon entry into an employment contract, a probationary period of up to six months may be applied.

§ 31. Duties of employees

(1) An employee is required to perform his or her duties in good faith, adhere to good practice and act with the conscientiousness necessary for the exercise of public authority, with the prudence and competence expected of him or her and according to the requirements for his or her position.

(2) An employee shall refrain from acts which are or may be detrimental to the objectives, functions or reputation of the Supervision Authority.

§ 32. Avoiding conflicts of interest

(1) An employee must avoid conflicts of interest while performing their duties.

(2) A conflict of interest is a situation in which the work-related activities of an employee are directly affected or may be affected by the interests of the employee or of a connected person as provided in § 7 of the Anti-corruption Act.

(3) An employee may not use confidential supervisory information that has come to their knowledge to make investment decisions in their own interest, in the interests of their relatives, or in the interest of any other third persons.

(4) An employee is prohibited from entering into transactions involving securities and other financial instruments of a subject of financial supervision, its parent or subsidiary undertaking, or an associated undertaking, as well as crypto-assets issued by a subject of financial supervision (hereinafter financial instrument). This prohibition does not apply to investments in investment funds or instruments managed by third parties, provided that the owners of such instruments cannot interfere with the management of the portfolio and their investments are diversified.

(5) If a person applying for employment with the Supervision Authority or an employee holds financial instruments that could give rise to a conflict of interest, they must dispose of them within a reasonable period of time. This obligation to dispose of such financial instruments does not apply to a person seeking employment or an employee if their duties at the Supervision Authority do not involve conducting or participating in supervision proceedings and they do not have access to documents or databases related to such proceedings. The Supervision Authority has the right to require a person applying for employment with the Supervision Authority or an employee to dispose of the financial instruments.

(6) The Supervision Authority has the right to establish more specific rules for employees regarding the avoidance of conflicts of interest, both in employment contracts and in internal rules.

(7) A person applying for employment with the Supervision Authority is required to submit to the management board, prior to the entry into an employment contract, their general information, the number of their identification document and any former names, as well as the general information regarding their spouse, partner, or registered partner, children, and parents, and information regarding their own financial obligations and those of these persons to subjects of financial supervision, as well as information regarding financial instruments held by the aforementioned persons. An employee is required to review this information at least once a year and to immediately notify the management board of any material changes to the information submitted.

(8) A more detailed list of the information to be submitted regarding the obligations and financial instruments specified in the first sentence of subsection 7 of this section is established by a regulation of the minister in charge of the policy sector.

§ 32¹. Restrictions on working

(1) An employee may not be connected with any organisation that represents the interests of the financial sector before the Supervision Authority, nor may the employee be a shareholder or partner with a qualifying holding in a subject of financial supervision, or a person otherwise exercising dominant influence on its management, a member of a management body, a procurator, other representative, an auditor, head of the internal audit unit, chairman of the audit committee, the director or representative of an Estonian branch of a foreign company.

(2) An employee may not have, nor may they enter into, any employment contracts or other agreements with any subject of financial supervision, its parent or subsidiary undertaking, or any associated undertaking, or with the persons specified in subsection 1 of this section, the content of which is to provide services to them. This restriction also applies to persons who are not yet subjects of financial supervision but who, according to all indications, will become so within six months.

(3) An employee must comply with the restrictions specified in subsections 1 and 2 of this section for six months following the termination of their employment with the Supervision Authority (hereinafter waiting period). The Supervision Authority may shorten the waiting period of an employee to up to three months, taking into account the following in the event of such shortening:

1) the previous positions and duties of the employee at the Supervision Authority;

2) the future position and duties of the employee, as well as the field of activity of the new employer, including its ties to subjects of financial supervision over which the Supervision Authority exercises supervision;

3) other circumstances.

(4) The restriction provided in subsection 3 of this section does not apply to an employee if their duties at the Supervision Authority did not include conducting or participating in supervision proceedings and the employee did not have access to documents and databases related to such proceedings.

(5) The waiting period for a member of the management board may not be shorter than 12 months. At the request of a member of the management board, and if justified considering the circumstances, the supervisory board may shorten the waiting period for a member of the management board, but it may not be shorter than three months. In shortening the waiting period for a member of the management board, the supervisory board is bound by the provisions of the second sentence of subsection 3 of this section. If, after the end of their term of office, a member of the management board takes up employment, provides services, or otherwise performs contractual duties for a subject of financial supervision or a competitor of its parent or subsidiary undertaking, or associated undertaking, over which the member of the management board has exercised supervision or regarding which they have made decisions, the waiting period may not be shorter than six months.

(6) The waiting period begins after the termination of employment or official relationship, when an employee or member of the management board is no longer able to directly participate in the supervision of a subject of financial supervision, its parent or subsidiary undertaking, or associated undertaking. The Supervision Authority ensures that neither the employee nor the member of the management board has access to confidential information after the termination of the employment or official relationship.

(7) Employees and members of the management board of the Supervision Authority are entitled to compensation for the waiting period. The amount of such compensation for each month of the waiting period may not exceed the maximum amount of the last contractual monthly salary or wages of the employee or member of the management board. Compensation is paid to the employee or member of the management board after the termination of their employment or official relationship. In the event of a breach of the waiting period, the Supervision Authority has the right to reclaim the compensation paid for the waiting period and to demand compensation for any damage caused. The Supervision Authority may agree with an employee or member of the management board on a contractual penalty for a breach of the waiting period.

(8) The Supervision Authority establishes more detailed conditions for the application of a waiting period in its internal rules.

§ 33. Removal

(1) An employee shall not participate in supervision procedure or in the preparation of a resolution of the management board if he or she is directly or indirectly personally interested in the matter.

(2) An employee is required to notify the chairman of the management board immediately if the circumstances specified in subsection 1 of this section exist or if his or her child, parent, sister, brother, spouse, registered partner or cohabitee, or a child, parent, sister or brother of his or her spouse, registered partner or cohabitee is a member of the management body, procurator, other representative, head of the internal audit unit, chairman of the audit committee or auditor, or shareholder with a qualifying holding in a relevant subject of financial supervision, or a person exercising dominant influence over the management of such company in any other manner or a director or representative of an Estonian branch of a foreign company.

(3) If the chairman of the management board has reasonable doubt about the impartiality of an employee, the chairman has the right to remove the employee from supervision procedure or the preparation of a resolution of the management board.

§ 34. Duty to maintain confidentiality

(1) Unless otherwise provided by this Act, employees of the Supervision Authority and the auditors, experts and other persons brought in by the Supervision Authority to participate in the conduct of financial supervision are required to maintain indefinitely the confidentiality of any confidential information which they may receive while performing their duties in the Supervision Authority.

(2) Persons specified in subsection 1 of this section shall not use for their private interests any confidential information which they may receive while performing their duties.

§ 35. Sources of financing

The expenses of the Supervision Authority shall be covered from the compulsory payments made by the subjects of financial supervision pursuant to the provisions of this Act (hereinafter the supervision fee), administrative fees and other sources.

§ 36. Budgetary year of Supervision Authority

The budgetary year of the Supervision Authority begins on 1 January and ends on 31 December.

§ 37. Supplementary budget of Supervision Authority

(1) A supplementary budget is prepared if the income of a financial year is not sufficient to cover the costs or investments of the Supervision Authority during the financial year.

(2) The management board shall prepare a supplementary budget together with proposals concerning the rates of the share of the supervision fee calculated on the basis of assets and shall submit it to the supervisory board for approval.

§ 37¹. Budget surplus

(1) If the income of the financial year of the Supervision Authority exceeds the costs, reserves may be formed, expenses incurred or investments made out of such budgetary surplus, or the surplus may be returned to the supervision subjects on uniform and proportional basis. The exceptions applied on the basis of the second sentence of subsection 2 and 3 of § 40 of this Act shall be taken into consideration into the implementation of the return of the surplus on uniform and proportional basis.

(2) The management board shall prepare a proposal for using the budget surplus and shall submit it to the supervisory board for approval.

§ 38. Supervision Fee

(1) The supervision fee consists of the capital share and the share calculated on the basis of assets.

(2) Investment firms, the central securities depository, the registrar of the pension register, operators of securities settlement systems, operators of regulated securities markets, insurance undertakings, credit institutions, payment institutions, e-money institutions, creditors, management companies, defined-benefit occupational pension funds, crowdfunding service providers, crypto-asset service providers, issuers of asset-referenced tokens, credit servicers, and credit information registrars pay the capital share of the supervision fee and its share calculated on the basis of assets, except in the cases specified in subsections 5–8 of § 43 of this Act. Payment institutions and e-money institutions to which the exemption provided for in subsections 1–3 of § 11 or subsection 1 of § 12 of the Payment Institutions and E-money Institutions Act applies, and data reporting services providers pay a supervision fee only in the amount of the share calculated on the basis of assets. Small fund managers provided in § 453 of the Investment Funds Act pay only the capital share of the supervision fee.

(3) Insurance brokers, credit intermediaries and Estonian branches of foreign companies who operate in the area of activity of investment firms, insurance undertakings, insurance brokers, credit institutions, creditors, credit intermediaries, payment institutions, e-money institutions, management companies, crowdfunding service providers, crypto-asset service providers, issuers of asset-referenced tokens, or credit servicers, credit information registrars, foreign management companies which manage UCITS or alternative UCITS established or founded in Estonia cross-border, and persons who have applied for an authorisation to submit direct bids at an auction on the basis of subsection 1 of § 162 of the Atmospheric Air Protection Act pay a supervision fee only in the amount of the share calculated on the basis of assets, except in the cases specified in subsections 5–8 of § 43 of this Act.

(4) The obligation to pay a supervision fee provided for in subsections 2 and 3 of this section (hereinafter the financing obligation) arises for the persons specified in those subsections or Estonian branches of foreign companies as of the date of entry into force of the decision of the Supervision Authority or date of performance of the act which grants the right to operate in the corresponding area of activity.

(5) The financing obligation of a person specified in subsections 2 and 3 of this section or an Estonian branch of a foreign company expires upon the expiry of the corresponding right to operate.

(6) Upon the expiry of a financing obligation, the supervision fee shall not be refunded.

(7) A supervision subject that operates in several areas of activity pay the supervision fee only as one supervision subject. Unless otherwise provided in this section, a supervision subject pays the supervision fee as such supervision subject or on the basis of such calculation which results in a higher supervision fee.

(8) In application of the provisions of subsection 7 of this section, the following principles are applied:

1) a company operating in the area of activity of credit institutions shall pay a supervision fee as a credit institution;

1¹) a creditor who is not a credit institution shall pay a supervision fee as a creditor;

1²) a credit intermediary who is neither a credit institution nor a creditor shall pay a supervision fee as a credit intermediary;

2) a company operating in the area of activity of management companies and not being a credit institution shall pay a supervision fee as a management company;

3) a company operating in the area of activity of investment firms and not being either a credit institution or a management company shall pay a supervision fee as an investment firm;

4) a company operating as the registrar of the central securities depository and the pension register and not being a credit institution, management company or investment firm shall pay a supervision fee as the registrar of the central securities depository and the pension register;

5) a company operating as an e-money institution and not being a credit institution shall pay a supervision fee as an e-money institution;

6) a company holding an authorisation of a payment institution and a creditor or credit intermediary shall pay the supervision fee as the supervision subject whose supervision fee is larger;

6¹) a company holding an authorisation of a crowdfunding service provider, investment firm, e-money institution or payment institution shall pay the supervision fee as the supervision subject whose supervision fee is larger;

6²) a crowdfunding service provider which is not a creditor or a credit intermediary shall pay the supervision fee as a crowdfunding service provider;

7) an investment firm or market operator acting as a data reporting services provider operating on the basis of an exemption is to pay a supervision fee either as an investment firm or market operator.

(9) A company specified in clause 2 of subsection 8 of this section shall pay the supervision fee on its capital and the assets of the investment funds managed by such person.

(10) The Financial Supervision Authority shall be entitled to require from a person subject to a financing obligation additional information, documents and written explanations for the calculation of the supervision fee.

§ 39. Rate of supervision fee

(1) The capital share of the supervision fee is an amount equal to one per cent of:

1) the minimum amount of the net own funds required pursuant to legislation in the case of a credit institution;

2) the floor of the Minimum Capital Requirement required pursuant to legislation in order to engage in the class of insurance specified in the authorisation in the case of an insurance undertaking;

3) the highest amount of minimum own funds required pursuant to legislation in the case of the registrar of the central securities depository and the pension register or an operator of a clearing and settlement system;

4) the highest amount of the minimum share capital or initial funds required pursuant to legislation in order to operate in the area of activity specified in the authorisation in the case of an investment firm, payment institution, operator of a regulated securities market, e-money institution, creditor, credit servicer, management company and defined-benefit occupational pension fund;

4¹) in the case of a credit information registrar, the highest amount of the minimum share capital required by the legal instrument for the maintenance of a credit information register;

5) in case of a fund manager of a pension fund, the minimum amount of the initial capital required pursuant to legislation;

6) in case of a crowdfunding service provider, the amount specified in Article 11 (1) a) of Regulation (EU) 2020/1503 of the European Parliament and of the Council on European crowdfunding service providers for business, and amending Regulation (EU) 2017/1129 and Directive (EU) 2019/1937 (OJ L 347, 20.10.2020, pp. 1–49);

7) in case of a crypto-asset service provider in accordance with the extent of the authorisation, the amount specified in Annex IV of Regulation (EU) 2023/1114 of the European Parliament and of the Council on markets in crypto-assets, and amending Regulations (EU) No 1093/2010 and (EU) No 1095/2010 and Directives 2013/36/EU and (EU) 2019/1937 (OJ L 150, 09.06.2023, pp 40–205);

8) in case of an issuer of asset-referenced tokens, except in case of a credit institution, the amount specified in Article 35(1) a) of Regulation (EU) 2023/1114 of the European Parliament and of the Council;

9) in case of a small fund manager specified in § 453 of the Investment Funds Act, twice the minimum amount of share capital required under the legislation.

(2) The share of the supervision fee calculated on the basis of assets is an amount equal to:

1) in case of a credit institution or an Estonian branch of a foreign credit institution, 0.005 to 0.05 per cent of the assets of the credit institution or the corresponding Estonian branch;

1¹) in case of a creditor or a branch of a foreign creditor, 0.01–1 per cent of the balance of the consumer credit granted to consumers by the creditor or corresponding Estonian branch;

1²) in case of a credit intermediary or an Estonian branch of a foreign credit intermediary, 0.01–1 per cent of the amount of the consumer credit arranged to consumers by the credit intermediary or corresponding Estonian branch;

1³) in case of a credit servicer or an Estonian branch of a foreign credit servicer, 0.01–1 per cent of the aggregate balance of the credit agreements managed by the credit servicer and the receivables deriving therefrom, or 0.1–0.7 per cent of the operating income;

1⁴) the case of a credit information registrar 0.1–0.7 per cent of the operating income;

2) in the case of an investment firm or an Estonian branch of a foreign investment firm, 0.05 to 0.3 per cent of the assets of the investment firm or the corresponding Estonian branch;

2¹) in case of a crowdfunding service provider or an Estonian branch of a foreign crowdfunding service provider, 0.001–0.1 per cent of the amounts raised by intermediation of the service provider;

2²) in case of a crypto-asset service provider providing the service specified in Article 3(1), point (16) c), d), e) or g) of Regulation (EU) 2023/1114 of the European Parliament and of the Council, or an Estonian branch of a foreign crypto-asset service provider, 0.005–2 per cent of the total amount of transactions initiated and accepted by the crypto-asset service provider;

2³) in case of a crypto-asset service provider providing the service specified in Article 3(1), point (16) a) or i) of Regulation (EU) 2023/1114 of the European Parliament and of the Council, or an Estonian branch of a foreign crypto-asset service provider, 0.005–2 per cent of the funds held for clients;

2⁴) in case of a crypto-asset service provider providing the service specified in Article 3(1), point (16) b), f), h) or j) of Regulation (EU) 2023/1114 of the European Parliament and of the Council, or an Estonian branch of a foreign crypto-asset service provider, 0.005–2 per cent of annual operating income from the service provided by the crypto-asset service provider.

2⁵) in case of an issuer of asset-referenced tokens, or an Estonian branch of a foreign issuer of asset-referenced tokens, 0.005–2 per cent of the value of the issued crypto-assets.

4) in case of a management company managing a pensions fund provided by § 3 of the Funded Pensions Act or an Estonian branch of a foreign management company managing a pensions fund, 0.005 to 0.2 per cent of the assets of the pensions funds managed by the management company or the corresponding Estonian branch;

5¹) in the case of a management company or the Estonian branch of a foreign management company, 0.01 to 0.1 per cent of the assets of the UCITS or alternative funds managed thereby, unless otherwise provided for in clause 5² of this subsection, or of the assets of the UCITS or alternative funds formed or founded in Estonia that are managed by the foreign management company, if these funds are managed cross-border, whereas the assets shall not include alternative funds managed by a small alternative funds manager;

5²) in the case of a management company, 0.001 to 0.01 per cent of the assets of the UCITS or alternative funds formed or founded in a foreign state that are managed thereby, unless the units or shares of the specified funds are publicly offered in Estonia, whereas the assets shall not include alternative funds managed by a small alternative funds manager;

5³) in the case of a defined-benefit occupational pension fund, 0.02 to 0.25 per cent of the total amount of the assets of the fund and the contributions made to the fund;

6) in case of an insurance undertaking engaged in non-life insurance and the Estonian branch of a corresponding foreign insurance undertaking, 0.05 to 0.5 per cent of the gross insurance premiums of the insurance undertaking or corresponding Estonian branch; in this respect, the gross insurance premiums shall not include the reinsurance premiums of the insurance undertaking or the Estonian branch of the corresponding foreign insurance undertaking in case the reinsurance undertaking under the reinsurance contract is an insurance undertaking registered in Estonia;

7) in case of an insurance undertaking engaged in life insurance and the Estonian branch of a corresponding foreign insurance undertaking, 0.02 to 0.25 per cent of the total amount of the assets and gross insurance premiums of the insurance undertaking or corresponding Estonian branch; in this respect, the gross insurance premiums shall not include the reinsurance premiums of the insurance undertaking or the Estonian branch of the corresponding foreign insurance undertaking in case the reinsurance undertaking under the reinsurance contract is an insurance undertaking registered in Estonia;

7¹) in case of an insurance undertaking engaged in reinsurance and the Estonian branch of a corresponding foreign insurance undertaking, 0.05 to 0.5 per cent of the gross reinsurance premiums of the insurance undertaking or corresponding Estonian branch; in this respect, the gross reinsurance premiums shall not include the reinsurance premiums of the reinsurance undertaking in case the reinsurance undertaking under the reinsurance contract is an insurance undertaking registered in Estonia;

8) in the case of an insurance broker or a corresponding Estonian branch of a foreign insurance broker, 0.5 to 5 per cent of the total commissions received by the insurance broker or the corresponding Estonian branch;

9) in the case of the registrar of the central securities depository and the pension register, 0.1 to 0.7 per cent of the operating income;

10) in the case of an operator of a securities settlement system or an operator of a regulated securities market, 0.1 to 0.5 per cent of the operating income;

11) in the case of an e-money institution or an Estonian branch of a foreign e-money institution, 0.05 to 0.5 per cent of the assets of the institution or Estonian branch;

12) in the case of a payment institution or an Estonian branch of a foreign payment institution, 0.0035 to 0.035 per cent of the total amount of payment transactions executed by a payment institution or an Estonian branch and initiated in the course of provision of a payment service specified in clause 7 of subsection 1 of § 3 of the Payment Institutions and E-money Institutions Act;

12¹) in the case of a payment institution to which the exemption specified in subsection 3 of § 11 of the Payment Institutions and E-money Institutions Act applies or in the case of an Estonian branch of a foreign payment institution providing exclusively the payment service specified in clause 8 of subsection 1 of § 3 of the Payment Institutions and E-money Institutions Act, 0.1 to 0.7 per cent of the operating income;

12²) in the case of a payment institution or an Estonian branch of a foreign payment institution providing the payment service specified in clause 5 of subsection 1 of § 3 of the Payment Institutions and E-money Institutions Act, 0.1 to 0.7 per cent of the operating income;

13) in case of a person who applied for an authorisation to submit direct bids at an auction on the basis of subsection 1 of § 162 of the Atmospheric Air Protection Act, 0.01 to 0.5 per cent of the volume of direct bids made by the person.

14) in case of a data reporting services provider operating on the basis of an exemption, 0.01 – 0.5 per cent of the operating income.

(2¹) The share of the supervision fee calculated on the basis of assets for a credit institution with an additional authorisation provided for in the Covered Bonds Act shall be increased by an amount equal to 0.001–0.02 percent of the total nominal value of outstanding covered bonds issued by the credit institution.

(2²) The assets of the clients of an investment firm which are administered by the investment firm in its own name but in the interests of the client, and recognised on its balance sheet, are not included in the asset items on the balance sheet of the investment firm.

(3) For the purposes of this Act, assets are taken to be total assets indicated on the unconsolidated balance sheet as provided by legislation.

§ 40. Establishment of rate of share of supervision fee calculated on basis of assets

(1) The rate of the share of the supervision fee calculated on the basis of assets shall be established for a calendar year as a percentage within the limits provided for in subsection 2 of § 39 of this Act. The rate shall be established by a regulation of the minister in charge of the policy sector within fifteen days after approval of the budget of the Supervision Authority by the supervisory board.

(2) In the case of the investment funds specified in clauses 4 and 5¹ of subsection 2 of § 39 of this Act, the supervisory board may prescribe different rates of share of supervision fee calculated on basis of assets, based on types of investment funds managed or the investment policy prescribed in the terms or statutes of the investment funds.

(3) The rate of the share of the supervision fee calculated on the basis of assets shall be the same for all persons and Estonian branches of foreign companies operating in the same area of activity. In the case of a credit institution or an Estonian branch of a foreign credit institution specified in clause 1 of subsection 2 of § 39 of this Act, which on the basis of Council Regulation (EU) No 1024/2013 conferring specific tasks on the European Central Bank concerning policies relating to the prudential supervision of credit institutions (OJ L 287, 29.10.2013, p. 63–89) is recognised a significant institution, the supervisory board may prescribe different rates of share of supervision fee.

(4) The rate of the share of the supervision fee calculated on the basis of assets shall be applied to calculation of the advance payment and final payment of the supervision fee.

§ 41. Calculation of advance payment of supervision fee

(1) In the case of a credit institution, e-money institution, investment firm, creditor or management company, the advance payment of the share of the supervision fee calculated on the basis of assets shall be calculated on the basis of the arithmetic mean of the assets of the person or the Estonian branch of a foreign company, the assets of the managed investment funds or, in the case of a creditor, the balance of the consumer credit granted to consumers, calculated according to the data on its balance sheet or statements submitted to the Supervision Authority as at 31 December of the preceding year and 31 March and 30 June of the current year.

(1¹) In the case of a defined-benefit occupational pension fund, the advance payment of the share of the supervision fee calculated on the basis of assets shall be calculated on the basis of the arithmetic mean of the assets of the person, calculated according to the data in the balance sheet of the person submitted to the Supervision Authority as at 31 December of the preceding year and 31 March and 30 June of the current year, and twice the total amount of the contributions made to the fund during the first six months of the current year in accordance with the data submitted to the Supervision Authority.

(1²) In the case of a credit institution with an additional authorisation provided for in the Covered Bonds Act, the advance payment of the share of the supervision fee calculated on the basis of assets shall be increased on the basis of the arithmetic mean of the nominal value of the covered bond portfolio of the person, calculated on the grounds of the data on its balance sheet or statements submitted to the Supervision Authority as at 31 December of the preceding year and 31 March and 30 June of the current year.

(2) In the case of an insurance undertaking engaged in life insurance, the advance payment of the share of the supervision fee calculated on the basis of assets shall be calculated on the basis of the arithmetic mean of the assets of the person or the Estonian branch of a corresponding foreign insurance undertaking, calculated according to the data in the balance sheet thereof as at 31 December of the preceding year and 31 March and 30 June of the current year submitted to the Supervision Authority, and twice the total amount of the gross insurance premiums earned during the first six months of the current year according to the data submitted to the Supervision Authority.

(3) In the case of an insurance undertaking engaged in non-life insurance, the advance payment of the share of the supervision fee calculated on the basis of assets shall be calculated on the basis of twice the total amount of the gross insurance premiums earned by the person or the Estonian branch of a corresponding foreign insurance undertaking during the first six months of the current year according to the data submitted to the Supervision Authority.

(3¹) In the case of an insurance undertaking engaged in reinsurance, the advance payment of the share of the supervision fee calculated on the basis of assets shall be calculated on the basis of twice the total amount of the gross reinsurance premiums earned by the person or the Estonian branch of a corresponding foreign insurance undertaking during the first six months of the current year according to the data submitted to the Supervision Authority.

(4) In the case of an insurance broker, the advance payment of the share of the supervision fee calculated on the basis of assets shall be calculated on the basis of the total amount of brokerage fees earned by the insurance broker or an Estonian branch of a foreign insurance broker for the previous year submitted to the Supervision Authority.

(5) In the case of the registrar of the central securities depository and the pension register, an operator of a securities settlement system, an operator of a regulated securities market, a data reporting services provider operating on the basis of an exemption and a payment institution to which an exemption specified in subsection 3 of § 11 of the Payment Institutions and E-money Institutions Act applies or which provides the payment service specified in clause 5 of subsection 1 of § 3 of the same Act, the advance payment of the share of the supervision fee calculated on the basis of assets is determined on the basis of the operating income earned by such persons according to the income statement of the previous year.

(5¹) In the case of a credit intermediary, the advance payment of the share of the supervision fee calculated on the basis of assets shall be calculated on the basis of the total amount of consumer credit arranged to consumers by the credit intermediary or an Estonian branch of a corresponding credit intermediary according to the annual accounts of the previous year submitted to the Supervision Authority.

(5²) In the case of a payment institution, the advance payment of the share of the supervision fee calculated on the basis of assets shall be calculated on the basis of the total amount of executed or initiated payment transactions recorded in the statements with regard to the previous year submitted by this person or an Estonian branch of the respective payment institution to the Supervision Authority.

(5³) In the case of a crowdfunding service provider, the advance payment of the share of the supervision fee calculated on the basis of assets shall be calculated on the basis of the amounts raised by intermediation of this person as recorded in the statements with regard to the previous year submitted to the Supervision Authority.

(5⁴) In case of a crypto-asset service provider providing the service specified in Article 3(1), point (16) c), d), e) or g) of Regulation (EU) 2023/1114 of the European Parliament and of the Council, or an Estonian branch of a foreign crypto-asset service provider, the advance payment of the share of the supervision fee calculated on the basis of assets is calculated on the basis of the total amount of transactions initiated and accepted by the crypto-asset service provider as recorded in the statements with regard to the previous year submitted to the Supervision Authority.

(5⁵) In case of a crypto-asset service provider providing the service specified in Article 3(1), point (16) a) or i) of Regulation (EU) 2023/1114 of the European Parliament and of the Council, or an Estonian branch of a foreign crypto-asset service provider, the advance payment of the share of the supervision fee calculated on the basis of assets is calculated on the basis of the arithmetic mean of the funds held for clients of the crypto-asset service provider, calculated according to the data in the statements submitted to the Supervision Authority as at 31 December of the preceding year and 31 March and 30 June of the current year.

(5⁶) In case of a crypto-asset service provider providing the service specified in Article 3(1), point (16) b), f), h) or j) of Regulation (EU) 2023/1114 of the European Parliament and of the Council, or an Estonian branch of a foreign crypto-asset service provider, the advance payment of the share of the supervision fee calculated on the basis of assets is calculated on the basis of the annual operating income from the service provided by the crypto-asset service provider, as recorded in the statements with regard to the previous year submitted to the Supervision Authority.

(5⁷) In case of an issuer of asset-referenced tokens, or an Estonian branch of a foreign issuer of asset-referenced tokens, the advance payment of the share of the supervision fee calculated on the basis of assets is calculated on the basis of the arithmetic mean of the value of the issued crypto-assets, calculated according to the data in the statements submitted to the Supervision Authority as at 31 December of the preceding year and 31 March and 30 June of the current year.

(5⁸) In case of a credit servicer, the advance payment of the share of the supervision fee calculated on the basis of assets is calculated on the basis of the arithmetic mean of the aggregate balance of the credit agreements managed by the credit servicer or the Estonian branch of a foreign credit servicer, and of the receivables deriving therefrom, calculated according to the data in the statements submitted to the Supervision Authority as at 31 December of the preceding year and 31 March and 30 June of the current year, or the operating income recorded in its income statement for the preceding year.

(5⁹) In the case of a credit information registrar, the advance payment of the share of the supervision fee calculated on the basis of assets is determined on the basis of the operating income earned by such person according to the income statement for the previous year.

(6) In the event of dissolution, calculation shall be based on the balance sheet prepared upon liquidation.

(7) The calculation of the advance payment of the supervision fee on the grounds provided for in subsections 1 and 2 of this section shall be based exclusively on the data as at the end of such quarter when a person subject to a financing obligation held a valid activity licence issued by the Financial Supervision Authority for the corresponding activities.

§ 42. Calculation of final amount of supervision fee

(1) In the case of a credit institution, e-money institution, investment firm, creditor or management company, the final payment of the share of the supervision fee calculated on the basis of assets shall be calculated on the basis of the arithmetic mean of the assets of the person or the Estonian branch of a foreign company, the assets of the managed investment funds or, in the case of a creditor, the balance of the consumer credit granted to consumers, calculated according to the data on its balance sheet or statements submitted to the Supervision Authority as at 31 March, 30 June, 30 September and 31 December of the preceding year.

(1¹) In the case of a defined-benefit occupational pension fund, the final payment of the share of the supervision fee calculated on the basis of assets shall be calculated on the basis of the arithmetic mean of the assets of the person, calculated according to the data on its balance sheet or statements submitted to the Supervision Authority as at 31 March, 30 June, 30 September and 31 December of the preceding year, and the total amount of the contributions made to the fund during the previous year in accordance with the data submitted to the Supervision Authority.

(1²) In the case of a credit institution with an additional authorisation provided for in the Covered Bonds Act, the final payment of the supervision fee calculated on the basis of assets shall be increased on the basis of the arithmetic mean of the nominal value of the covered bond portfolio of the person, calculated according to the data on its balance sheet or statements submitted to the Supervision Authority as at 31 March, 30 June, 30 September and 31 December of the preceding year.

(2) In the case of an insurance undertaking engaged in life insurance, the final payment of the share of the supervision fee calculated on the basis of assets shall be calculated on the basis of the arithmetic mean of the calculated assets of the person or the Estonian branch of a corresponding foreign insurance undertaking, calculated according to the data in the balance sheet thereof as at 31 March, 30 June, 30 September and 31 December of the preceding year submitted to the Supervision Authority, and the total amount of the gross insurance premiums earned during the previous year according to the data submitted to the Supervision Authority.

(3) In the case of an insurance undertaking engaged in non-life insurance, the final amount of the share of the supervision fee calculated on the basis of assets shall be calculated on the basis of the total amount of the gross insurance premiums earned during the previous year by the person or the Estonian branch of a corresponding foreign insurance undertaking according to the data submitted to the Supervision Authority.

(3¹) In the case of an insurance undertaking engaged in reinsurance, the final amount of the share of the supervision fee calculated on the basis of assets shall be calculated on the basis of the total amount of the gross reinsurance premiums earned during the previous year by the person or the Estonian branch of a corresponding foreign insurance undertaking according to the data submitted to the Supervision Authority.

(4) In the case of an insurance broker, the final amount of the share of the supervision fee calculated on the basis of assets shall be calculated on the basis of the total amount of brokerage fees earned by the insurance broker or an Estonian branch of a foreign insurance broker for the previous year submitted to the Supervision Authority.

(5) In the case of the registrar of the central securities depository and the pension register, an operator of a securities settlement system, an operator of a regulated securities market, a data reporting services provider operating on the basis of an exemption and a payment institution to which the exemption specified in subsection 3 of § 11 of the Payment Institutions and E-money Institutions Act applies or which provides the payment service specified in clause 5 of subsection 1 of § 3 of the same Act, the final payment of the share of the supervision fee calculated on the basis of assets is determined on the basis of the operating income earned by such persons according to the income statement of the previous year.

(5¹) In the case of a credit intermediary, the final payment of the share of the supervision fee calculated on the basis of assets shall be calculated on the basis of the total amount of consumer credit arranged to consumers by the credit intermediary or an Estonian branch of a corresponding credit intermediary according to the annual accounts of the previous year submitted to the Supervision Authority.

(5²) In the case of a payment institution, the final payment of the share of the supervision fee calculated on the basis of assets shall be calculated on the basis of the total amount of executed or initiated payment transactions recorded in the statements with regard to the previous year submitted by this person or an Estonian branch of the respective payment institution to the Supervision Authority.

(5³) In the case of a crowdfunding service provider, the final payment of the share of the supervision fee calculated on the basis of assets shall be calculated on the basis of the amounts raised by intermediation of this person as recorded in the statements with regard to the previous year submitted to the Supervision Authority.

(5⁴) In case of a crypto-asset service provider providing the service specified in Article 3(1), point (16) c), d), e) or g) of Regulation (EU) 2023/1114 of the European Parliament and of the Council, or an Estonian branch of a foreign crypto-asset service provider, the final payment of the share of the supervision fee calculated on the basis of assets is calculated on the basis of the total amount of transactions initiated and accepted by the crypto-asset service provider as recorded in the statements with regard to the previous year submitted to the Supervision Authority.

(5⁵) In case of a crypto-asset service provider providing the service specified in Article 3(1), point (16) a) or i) of Regulation (EU) 2023/1114 of the European Parliament and of the Council, or an Estonian branch of a foreign crypto-asset service provider, the final payment of the share of the supervision fee calculated on the basis of assets is calculated on the basis of the arithmetic mean of the funds held for clients of the crypto-asset service provider, calculated according to the data in the statements submitted to the Supervision Authority as at 31 March, 30 June, 30 September and 31 December of the preceding year.

(5⁶) In case of a crypto-asset service provider providing the service specified in Article 3(1), point (16) b), f), h) or j) of Regulation (EU) 2023/1114 of the European Parliament and of the Council, or an Estonian branch of a foreign crypto-asset service provider, the final payment of the share of the supervision fee calculated on the basis of assets is calculated on the basis of the annual operating income from the service provided by the crypto-asset service provider, as recorded in the statements with regard to the previous year submitted to the Supervision Authority.

(5⁷) In case of an issuer of asset-referenced tokens, or an Estonian branch of a foreign issuer of asset-referenced tokens, the final payment of the share of the supervision fee calculated on the basis of assets is calculated on the basis of the arithmetic mean of the value of the issued crypto-assets, calculated according to the data in the statements submitted to the Supervision Authority as at 31 March, 30 June, 30 September and 31 December of the preceding year.

(5⁸) In case of a credit servicer, the final payment of the share of the supervision fee calculated on the basis of assets is calculated on the basis of the arithmetic mean of the aggregate balance of the credit agreements managed by the credit servicer or the Estonian branch of a foreign credit servicer, and of the receivables deriving therefrom, calculated according to the data in the statements submitted to the Supervision Authority as at 31 March, 30 June, 30 September and 31 December of the preceding year, or the operating income recorded in its income statement for the preceding year.

(5⁹) In the case of a credit information registrar, the final payment of the share of the supervision fee calculated on the basis of assets is determined on the basis of the operating income earned by such person according to the income statement for the previous year.

(6) If a financing obligation arises during a calendar year, the final payment of the share of the supervision fee calculated on the basis of assets payable for the forthcoming budgetary year shall be calculated on the basis of the assets, balance of the consumer credit as at 31 December or total amount of gross insurance premiums, contributions made to a defined-benefit occupational pension fund or payment transactions as provided for in subsections 1–3 of this section, taking into consideration the provisions of § 441 of this Act.

(7) In the event of dissolution, calculation shall be based on the balance sheet prepared upon liquidation.

§ 43. Payment of supervision fee

(1) To pay the amount of the supervision fee, the Supervision Authority shall send, without hearing a person, the corresponding order, specifying the applicable rate of the supervision fee, the amount of the payable supervision fee and the due date.

(2) The supervision fee shall be paid as an advance payment and final payment. The size of the final payment of the supervision fee shall be the final amount of the supervision fee to be paid during a particular budgetary year of the Supervision Authority (hereinafter budgetary year) for that year.

(3) If an advance payment of the supervision fee exceeds the final payment, the Supervision Authority shall refund the overpaid amount of the supervision fee by the due date provided for in subsection 2 of § 44 of this Act.

(4) If an advance payment of the supervision fee is less than the final payment, a final payment in the amount of the difference between the final payment and the advance payment shall be made by the due date provided for in subsection 2 of § 44 of this Act.

(5) If a financing obligation arises during the first half of a calendar year, the final payment of the supervision fee shall be made only in the amount of the capital share.

(6) If a financing obligation arises for a branch of foreign investment firm, insurance undertaking, insurance broker, credit institution, creditor, credit intermediary, credit servicer, payment institution, e-money institution, management company, crypto-asset service provider, issuer of asset-referenced tokens or crowdfunding service provider, and a foreign management company which manages a UCITS or alternative fund formed or founded in Estonia cross-border during the first half of a calendar year, the final payment of the supervision fee is made in an amount equal to a half of the capital share of the supervision fee payable by the investment firm, insurance undertaking, insurance broker, credit institution, creditor, credit intermediary, credit servicer, payment institution, e-money institution, management company, crypto-asset service provider, issuer of asset-referenced tokens or crowdfunding service provider.

(7) If a financing obligation arises during the second half of a calendar year, the final payment of the supervision fee shall be made only in the amount of half the capital share.

(8) If a financing obligation arises for a branch of foreign investment firm, insurance undertaking, insurance broker, credit institution, creditor, credit intermediary, credit servicer, payment institution, e-money institution, management company, crypto-asset service provider, issuer of asset-referenced tokens or crowdfunding service provider, and a management company of another EEA country which manages a UCITS founded in Estonia cross-border during the second half of a calendar year, the final payment of the supervision fee is made in an amount equal to a quarter of the capital share of the supervision fee payable by the investment firm, insurance undertaking, insurance broker, credit institution, creditor, credit intermediary, credit servicer, payment institution, e-money institution, management company, crypto-asset service provider, issuer of asset-referenced tokens or crowdfunding service provider.

(9) In the case provided for in subsections 5–8 of this section, the amount of the capital share of the supervision fee payable by an insurance broker and credit intermediary equals 1000 euros.

(10) Supervision fees are paid to the account of the Supervision Authority.

§ 44. Term for payment of supervision fee

(1) Any advance payment of the share of the supervision fee calculated on the basis of assets and the capital share of the supervision fee which is payable for a budgetary year shall be made by 31 December of the preceding year.

(2) The final payment of the share of the supervision fee calculated on the basis of assets shall be made by 1 September of the budgetary year.

(3) If a financing obligation arises during the current year, the capital share of the supervision fee shall be paid within 30 days after the obligation has arisen.

§ 44¹. Specifications of calculation and payment of supervision fee

(1) If a person subject to a financing obligation during the year of imposing the advance payment of the supervision fee has acquired an enterprise or installation, taken over an insurance portfolio or otherwise acquired or taken over the assets or liabilities of another subject of supervision (hereinafter in this section transferee subject of supervision), the advance payment of the supervision fee of the transferee subject of supervision shall be calculated on the basis of the data used for the calculation of the supervision fee and provided for in this Act as at 30 June of the current year and in the calculation of the final payment as at 31 December of the preceding year.

(2) If the transferee subject of supervision specified in subsection 1 of this section has taken over an insurance portfolio or assets and liabilities of a defined-benefit occupational pension fund, the corresponding insurance portfolio or assets and liabilities shall be deemed to be owned by the transferee subject of supervision in the calculation of the total amount of gross insurance premiums or contributions made to the fund as of 31 December of the year preceding the calculation of the advance payment.

(3) In the case specified in subsections 1 and 2 of this section, the final payment of the share of the supervision fee calculated on the basis of assets shall be paid by 28 March of the budgetary year.

§ 45. Consequences of failure to pay supervision fee

If a person required to pay the supervision fee fails to pay the supervision fee within the term prescribed in the order, the Supervision Authority shall have the right to implement compulsory execution pursuant to the procedure provided for in the Code of Enforcement Procedure.

§ 45¹. Processing fee

Processing fee is a mandatory payment in the amount established by this Act to be made by an applicant or person applying for performance of an act for the review of an application or performance of an act prescribed by this Act by the Supervision Authority.

§ 45². Payer of processing fee

For the purposes of this Act, the payer of the processing fee is a natural person, legal person or branch of a foreign company who applies for the review of an application or performance of an act from the Supervision Authority.

§ 45³. Application for initial authorisation

(1) A processing fee of 5000 euros is paid upon application for an authorisation for a credit institution or an authorisation for establishing a branch of a credit institution registered in a country which is not a contracting party to the EEA agreement (hereinafter third country) in Estonia.

(2) A processing fee of 3000 euros is paid upon application for an authorisation for an insurance undertaking, investment firm, operator of a regulated securities market, data reporting services provider, operator of a securities settlement system, payment institution, e-money institution, management company, creditor or credit intermediary, crypto-asset service provider, issuer of asset-referenced tokens, credit servicer, or crowdfunding service provider.

(3) A processing fee of 1000 euros shall be paid for an authorisation for foundation in Estonia of a branch of an insurance undertaking, investment firm, payment institution, e-money institution, management company, creditor or credit intermediary registered in a third country or for the provision of cross-border services in Estonia by an insurance undertaking, investment firm, payment institution, e-money institution, management company, creditor or credit intermediary registered in a third country.

(4) A processing fee of 150 euros shall be paid upon application for the entry of an insurance broker, or a branch of an insurance broker registered in a third country in the register of insurance intermediaries.

(5) If a payment institution, in the application for an authorisation, applies for the implementation of an exemption provided for in subsections 1–3 of § 11 or subsection 1 of § 12 of the Payment Institutions and E-money Institutions Act, a processing fee of 500 euros shall be paid.

(6) A processing fee of 300 euros shall be paid upon application for an authorisation provided for in subsection 1 of § 162 of the Atmospheric Air Protection Act.

§ 45⁴. Application for additional authorisation or amendment of existing authorisation

A processing fee of 1500 euros is paid upon application for an additional authorisation or extension of the range of services permitted in an existing authorisation by a credit institution, insurance undertaking, investment firm, operator of a regulated securities market, data reporting services provider, management company, payment institution, e-money institution, creditor or credit intermediary, crypto-asset service provider, issuer of asset-referenced tokens, credit servicer, or crowdfunding service provider, or upon application for the termination of the implementation of an exemption provided for in subsections 1–3 of § 11 or subsection 1 of § 12 of the Payment Institutions and E-money Institutions Act.

§ 45⁵. Application for approval of securities prospectus and annex thereto, and application for approval of white paper and notification thereof

(1) A processing fee of 2000 euros is paid upon application for approval of a securities prospectus, except for the initial public offering of units or stocks of investment firms, and a processing fee of 1000 euros is paid upon application for approval of an annex to the prospectus.

(2) A processing fee of 2000 euros is paid upon application for approval of a white paper in accordance with the provisions of Article 17(1) a) of Regulation (EU) 2023/1114 of the European Parliament and of the Council, and a processing fee of 1000 euros is paid upon application for approval of a new version of a white paper in accordance with Article 25 of Regulation (EU) 2023/1114 of the European Parliament and of the Council.

(3) A processing fee of 1000 euros is paid upon notification of a crypto-asset white paper in accordance with Article 8(1) of Regulation (EU) 2023/1114 of the European Parliament and of the Council.

§ 45⁶. Application for approval of takeover bid

A processing fee of 600 euros shall be paid upon application for approval of a takeover bid.

§ 45⁷. Application for approval of fund rules, statutes of a fund founded as a public limited company and amendment thereof, and for registration of offering of units or shares of foreign fund and registration of management company

(1) A processing fee of 600 euros shall be paid upon application for approval of fund rules of a contractual fund or statutes of a fund founded as a public limited company.

(2) A processing fee of 200 euros shall be paid upon application for approval of amendment of fund rules of a contractual fund or statutes of a fund founded as a public limited company.

(3) A processing fee of 600 euros shall be paid upon application for the registration of the public offering of the units or shares of a foreign fund.

(4) A processing fee of 2000 euros is paid upon registration of a small fund manager provided in § 453 of the Investment Funds Act.

§ 45⁸. Application for approval of amendment of rules

A processing fee of 250 euros shall be paid upon application for approval of the amendment of the rules and regulations of a trading venue specified in § 3 of the Securities Market Act.

§ 45⁹. Application for approval of amendment of rules of securities settlement systems

A processing fee of 250 euros shall be paid upon application for approval of the amendment of the rules of a securities settlement system.

§ 45¹⁰. Payment of processing fee

(1) Processing fees are paid before submission of applications and performance of acts.

(2) Processing fees are paid to the account of the Supervision Authority.

(3) Upon payment of a processing fee, the document certifying payment of the processing fee shall set out the name of the act for the performance of which the processing fee is paid or refer to the provision of this Act on the basis of which the fee for the act is paid. The name of the person for whom the processing fee is paid shall also be indicated on the document certifying payment of the fee for the act.

§ 45¹¹. Exemption from payment of processing fee

The processing fee provided by subsection 2 of § 45⁷ and §§ 45⁸ and 45⁹ of this Act is not paid if amendments in the fund rules, statutes, regulations or rules arise from amendments to legislation.

§ 45¹². Refund of processing fee

(1) A person who pays a processing fee has the right to apply for the refund of the processing fee on the basis provided by subsection 6 of this section within two years as of the date on which the fee is paid.

(2) The Supervision Authority shall make a decision concerning an application within twenty calendar days as of receipt of the application.

(3) For application of refund of a processing fee, a written application together with the document in proof of payment of the processing fee shall be submitted to the Supervision Authority.

(4) The Supervision Authority shall refund the processing fee within ten calendar days as of the entry into force of the decision specified in subsection 2 of this section

(5) The Supervision Authority refuses to review an application for refund of a processing fee if the Supervision Authority has made a decision on the application for refund of the processing fee.

(6) A processing fee which has already been paid shall be refunded in part or in whole if:

1) the fee paid exceeds the prescribed amount;

3) the processing fee was paid by a person who pursuant to this Act is exempt from payment of the processing fee;

4) the person who paid the processing fee foregoes the act or submission of the application prior to addressing the Supervision Authority.

§ 46. Cooperation with international organisations

(1) The Supervision Authority shall participate in and cooperate with international organisations within the limits of its competence.

(2) The Supervision Authority shall participate in the work of the following institutions, bodies and committees (hereinafter in this section institutions):

1) the European Banking Authority;

2) the European Securities and Markets Authority;

3) the European Insurance and Occupational Pensions Authority;

4) the Joint Committee of the European Supervisory Authorities;

5) the European Systemic Risk Board.

(3) The Supervision Authority informs the relevant European supervisory authority specified in subsection 2 of this section (hereinafter European supervisory authority) of:

1) grant of authorisation to a subsidiary investment firm, credit institution, management company, payment institution, e-money institution or insurance undertaking (hereinafter financial institution) who is directly or indirectly controlled by a parent undertaking operating on the basis of the legislation of a third country not specified in subsection 7 of this section or located in a third country (hereinafter third country parent undertaking); the Supervision Authority shall also submit, at that time, the structure of the consolidation group to the Commission;

2) acquisition of a holding in a financial institution by a third country parent undertaking as a result of which the financial institution becomes a subsidiary of the third country parent undertaking;

3) all circumstances which prevent the foundation of a financial institution or provision of services in third countries;

4) the relevant third countries where the requirements equivalent to the requirements provided for in the Money Laundering and Terrorist Financing Prevention Act are effective, and the countries where the legislation of the country does not provide an opportunity for the implementation of the measures that are equivalent to the requirements provided for in the abovementioned Act;

4¹) a decision or administrative act which entered into force and imposition of non-compliance levy made in a misdemeanour matter where proceedings were conducted on the basis of the Money Laundering and Terrorist Financing Prevention Act, as well as challenges or appeals filed with regard to the specified judgments;

5) all its decisions pertaining to the grant of authorisation to financial institutions and decisions to revoke such authorisation, including the reasons for the revocation.

(4) The Supervision Authority shall inform the European Commission of:

1) as at 31 December of each calendar year of the number of companies which pursuant to subsection 1 of § 12 of the Payment Institutions and E-money Institutions Act issue e-money, and the total amount of e-money issued and used by the companies;

1¹) as at 31 December of each calendar year of the number of companies which provide payment services pursuant to subsections 1 and 2 of § 11 of the Payment Institutions and E-money Institutions Act, and the total amount of payment transactions executed by them;

2) the grant of authorisation to a branch of a third country e-money institution to be founded in Estonia;

3) any circumstances that prevent foundation of or providing services in a third country by a person engaging in insurance distribution.

(5) At the request of the European Commission, the Supervision Authority shall inform the European Commission of:

1) every application for authorisation submitted by a direct or indirect subsidiary of a third country parent undertaking;

2) every application for acquisition by a third country parent undertaking of a holding in a financial institution as a result of which the financial institution will become a subsidiary of the third country parent undertaking.

(6) The Supervision Authority shall regularly inform the European Commission and the relevant European supervisory authority of the following decisions and agreements:

1) decisions concerning refusal to forward data and documents submitted for foundation of a branch of a financial institution and amendments to aforementioned data to financial supervision authorities of Contracting States;

2) decisions on measures and punishments imposed for prevention of further violations on Estonian branches of Contracting State credit institutions;

3) decisions concerning refusal to forward data and documents submitted for provision of cross-border services by insurance undertakings to financial supervision authorities of Contracting States;

4) agreement on the transfer to the financial supervision authority of the Contracting State of the duties of supervision over the Estonia-based subsidiary credit institution of the credit institution of the Contracting State, and the content of such agreement;

5) a resolution adopted with regard to the Estonian branch of an insurance undertaking of a Contracting State or an intermediary of a Contracting State engaging in insurance distribution in Estonia for issue of a precept specified in subsection 6 of § 237 of the Insurance Activities Act.

5) a resolution adopted with regard to the Estonian branch of an insurance undertaking of a Contracting State for issue of a precept provided for in subsection 6 of § 237 of the Insurance Activities Act.

(7) Upon the circumstances specified in clause 5 of subsection 3 of this section becoming evident, the Supervision Authority shall, at the request of the European Commission, suspend for up to three months the making of a decision in a proceeding related to application for an activity licence for a financial institution or acquisition of a qualifying holding in a financial institution pursuant to the provisions of subsection 3 of this section.

(8) The Supervision Authority immediately notifies the European Commission and the relevant European supervisory authority and the financial supervision authority of the other Contracting State of all agreements that have been entered into for the transfer of the duties of supervision, including the specific terms and conditions of such transfer.

(9) The Supervision Authority shall co-operate with the European Commission in exercising supervision over co-insurance activities. Co-operation shall include the review of such cases where the leading insurance undertaking does not fully perform the duties of the leading insurance undertaking or the participation of several insurance undertakings is irrelevant upon the insurance of certain insured risks.

(10) The Supervision Authority participates in the work of the Oversight Forum provided in Article 32 of Regulation (EU) No 2022/2554 of the European Parliament and of the Council, and informs the Lead Overseer thereof in accordance with paragraph 5 of the same Article.

§ 46¹. Cooperation with European Securities and Markets Authority and associated organisations

(1) The Supervision Authority shall inform the European Securities and Markets Authority and the financial supervision authorities of other Contracting States of:

1) every regulated securities market conforming to the requirements provided by the Securities Market Act and legislation established on the basis thereof, which is regulated by an operator of a regulated securities market registered in Estonia holding a valid activity licence, and shall prepare a list of such markets (hereinafter in this section market list);

2) every amendment to the market list;

3) authorities and persons who exercise financial supervision over compliance with the Securities Market Act, of their functions and right to cooperate with the financial supervision authorities of foreign states, of agreements entered into on the basis of Acts and of the terms and conditions of the agreements pursuant to which third persons are permanently authorised to perform the duties of supervision provided by the Securities Market Act.

(2) The Supervision Authority shall inform the European Securities and Markets Authority of the Estonian procedure for extrajudicial proceedings of the consumers' complaints pertaining to investment services and ancillary services.

(3) The Supervision Authority shall submit to the European Securities and Markets Authority and the European Commission the list of covered bonds and the issuers thereof specified in subsection 9 of § 115 of the Investment Funds Act.

(4) The Supervision Authority shall inform the European Securities and Markets Authority of the securities settlement system and the operator thereof, also notifying of itself as the institution which is informed of the commencement of the bankruptcy proceedings against a member of the securities settlement system or linked system or the operator of such system or linked system for the purposes of subsection 8 of § 228 of the Securities Market Act or the establishment of a moratorium on a credit institution.

(5) The Supervision Authority shall inform the European Securities and Markets Authority of the payment system and its administrator.

(6) The Supervision Authority shall promptly inform the European Systemic Risk Board, the financial supervision authorities of other Contracting States and the European Securities and Markets Authority of the commencement of the bankruptcy proceedings against a member of the securities settlement system or linked system or the operator of such system or linked system for the purposes of subsection 8 of § 228 of the Securities Market Act or the establishment of a moratorium on a credit institution.

(7) The Supervision Authority shall notify the European Securities and Markets Authority of a decision made in a disclosed misdemeanour matter or the administrative act or the administrative contract, its contestation, revocation and a decision on its non-disclosure and a final judgment made in a criminal matter pertaining to the conduct of financial supervision and submit recapitulative information to the latter once a year.

(8) The Supervision Authority notifies the European Securities and Markets Authority of the grant of authorisation to a data reporting services provider operating on the basis of an exemption.

(9) The Supervision Authority shall notify the European Securities and Markets Authority of each demand or proposal for a position held in a commodity derivative or risk mitigation measures and a limit related to taking a position held in a commodity derivative established with regard to a person at least 24 hours before the intended entry into force of the measures. In emergency situations, the Supervision Authority may submit a notification less than 24 hours before the intended entry into force of the measures, if this cannot be performed within the term specified in the first sentence.

(10) If the demand, proposal or limit specified in subsection 9 of this section is related to wholesale energy products, the Supervision Authority shall also notify an Agency for the Cooperation of Energy Regulators established on the basis of Regulation (EC) No 713/2009 of the European Parliament and of the Council establishing an Agency for the Cooperation of Energy Regulators (OJ L 211, 14.08.2009, p. 1–14).

(11) The notification specified in subsection 9 of this section shall set out the following information, if relevant:

1) the details of the demand, including the information on the person to whom the demand has been filed, and the reasons therefor;

2) the scope of the limit established when taking a position held in a commodity derivative, the person to whom the limit has been established, the securities covered by the limit, the limits of the size of a position held by the person at any time, the exceptions made in respect thereto and the reasons for the introduction of the exceptions.

(12) If the Supervision Authority receives the information specified in subsection 9 of this section, it may implement the measures specified in subsection 9 if, in the opinion of the Supervision Authority, these are necessary for the achievement of an objective of a Contracting State financial supervision authority.

(13) The Supervision Authority submits to the European Securities and Markets Authority a list of the branches of third country investment firms, founded in Estonia. In addition, the Supervision Authority submits to the European Securities and Markets Authority, at the request of the latter, information on the following:

1) foundation of an Estonian branch by a third country investment firm and grant of an authorisation to such branch or amendments to the authorisation;

2) activities of the branch and services provided in Estonia;

3) turnover of the indicated services and activities of the branch and the aggregated value of the assets corresponding to the services and activities;

4) name of the consolidation group of the third country investment firm to which the branch belongs.

§ 46². Cooperation with European Banking Authority and associated organisations

(1) The Supervision Authority shall inform the European Commission, the European Banking Authority and the European Banking Committee:

1) of the grant of an authorisation to a branch of a third country credit institution to be founded in Estonia and of any changes made to the authorisation;

2) of the amount of all the assets and liabilities of an Estonian branch of a third country credit institution based on periodic reports;

3) of a third country consolidation group if the Estonian branch of a credit institution belonging to such group has received an authorisation.

(1¹) The Supervision Authority notifies the European Banking Authority of the issuers of covered bonds pursuant to § 58 of the Covered Bonds Act.

(1²) The Supervision Authority submits the following information to the European Banking Authority regarding the third country consolidation group which is subject to its supervision:

1) the names of persons in the third country consolidation group that are subject to supervision by the Supervision Authority, and the total value of assets;

2) the name, total value of assets and activities set out in the activity licence of the branch of a third country credit institution that has been granted an activity license under the Credit Institutions Act, the Securities Market Act, or Regulation (EU) No 600/2014 of the European Parliament and of the Council on markets in financial instruments and amending Regulation (EU) No 648/2012 (OJ L 173, 12.6.2014, pp 84–148);

3) the name of the intermediary undertaking in the European Union in accordance with subsection 1 of § 20⁷ of the Credit Institutions Act, the form under which it operates in the European Union, and the name of the third country consolidation group to which it belongs.

(2) The Supervision Authority shall submit to the European Banking Authority once a year the information concerning the remuneration of the members of the management boards and employees of the credit institutions and investment firms that were granted authorisation in Estonia, to the extent subject to publication pursuant to the p rovisions of the Credit Institutions Act and the Securities Market Act.

(3) If the Supervision Authority establishes during an inspection that a credit institution may have systemic risk for the purposes of Regulation (EU) No 1093/2010 of the European Parliament and of the Council establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC (OJ L 331, 15.12.2010, p. 12 – 47), the Supervision Authority shall promptly notify the European Banking Authority of the inspection results.

(3¹) The Supervision Authority informs the European Banking Authority if the materialisation of the liquidity risk may cause the systemic instability of a credit institution, investment firm or financial system.

(3²) The Supervision Authority submits to the central database of the competent authorities of the European Banking Authority information on a decision made in a disclosed misdemeanour matter or the administrative act or the administrative contract, its contestation, revocation and a decision on its non-disclosure pertaining to the subject of financial supervision.

(4) The Supervision Authority shall notify the European Banking Authority if a financial supervision authority of the Contracting State has refused from cooperation, including exchange of information, or has failed to respond to a respective application within a reasonable period of time.

(5) The Supervision Authority may submit an application and request assistance from the European Banking Authority pursuant to Article 19 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council in case:

1) a financial supervision auth ority of the other Contracting State has failed to perform the obligations arising from the European Union law when exercising supervision over a credit institution which provides cross-border services or has founded a branch in Estonia, and which violates the requirements of the legislation, or if there is an increased risk of non-compliance with the requirements;

2) the Supervision Authority has objections with regard to failure to take into account the relevant information by a financial supervision auth ority of the other Contracting State concerning the branch of a credit institution upon implementation of preventive or other measures or exercising of supervision.

3) the financial supervision authority of another Contracting State does not comply with the obligations arising from Article 26 or Articles 28–31 of Directive 2015/2366/EU of the European Parliament and of the Council on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No 1093/2010, and repealing Directive 2007/64/EC (OJ L 337, 23.12.2015, p. 35–127);

4) it is planned to take a single or several early intervention measures set out in clause 1 of subsection 4 of § 36 of the Financial Crisis Prevention and Resolution Act in relation to the bases specified in clauses 4, 10, 11 and 19 of subsection 1 of § 11 of the same Act, and the measure set out in clause 4 or 5 of subsection 4 of § 36 of the same Act.

(6) If the financial supervision authority of another Contracting State refers the matter to the European Banking Authority on the basis of Article 27(1) of Directive 2015/2366/EU of the European Parliament and of the Council in connection with the pending administrative proceedings of the Supervision Authority, the issue of an administrative act or undertaking an activity shall be postponed by the Supervision Authority until the disagreements have been settled pursuant to Article 19 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council, excluding the case provided for in subsection 8 of § 93 of the Payment Institutions and E-money Institutions Act. The time-limits of proceedings prescribed by law shall be suspended for the term of settlement of the disagreements.

(7) The Supervision Authority shall submit to the European Banking Authority the information regarding:

1) the payment institutions pursuant to the implementing regulation of the European Commission specified in Article 15(5) of Directive 2015/2366/EU of the European Parliament and of the Council;

2) the persons who submitted the notices specified in subsections 1 and 3 of § 4¹ of the Payment Institutions and E-money Institutions Act, specifying the basis for exclusion of the payment transactions executed and services provided by the person from the scope of the Payment Institutions and E-money Institutions Act.

(8) After receiving a notice specified in subsection 1 of § 63⁶ of the Payment Institutions and E-money Institutions Act, the Supervision Authority promptly reports any major operational and security incidents to the European Banking Authority and the European Central Bank. The Supervisory Authority assesses, in cooperation with the European Banking Authority and the European Central Bank, the relevance of the incident for other Member States and informs them where necessary.

(9) The Supervision Authority shall forward to the European Banking Authority and the European Central Bank in an aggregated form the statistical data received pursuant to subsection 3 of § 63⁶ of the Payment Institutions and E-money Institutions Act.

(10) The Supervision Authority forwards to the European Banking Authority information pertaining to all sanctions imposed on the issuers of covered bonds and precepts issued to them pursuant to subsection 1 of § 104 and non-compliance levy imposed pursuant to subsection 1 of § 104¹ of the Credit Institutions Act, including contesting of decisions and results thereof. The Supervision Authority must provide detailed information to other relevant financial supervision authorities about judgments imposing criminal sanctions which have entered into force.

(11) The Supervision Authority informs the European Banking Authority about:

1) the monitoring and assessing process specified in subsection 5 of § 230 of the Securities Market Act;

2) the methodology of making the decisions specified in §§ 235, 236¹¹ and 236¹² of the Securities Market Act;

3) the rates of sanctions for misdemeanours specified in Chapter 25 of the Securities Market Act.

§ 46³. Cooperation with European Insurance and Occupational Pensions Authority and associated organisations

(1) The Supervision Authority shall inform the financial supervision authority of the other Contracting State which exercises financial supervision over an undertaking providing occupational pensions of an undertaking providing cross-border occupational pensions service in Estonia that has received an authorisation from the Supervision Authority for the above activity.

(2) The Supervision Authority shall inform the European Insurance and Occupational Pensions Authority if any prudential ratio requirements are applied to occupational pension schemes which are not included in the national social and labour legislation specified in Article 11 (1) of Directive (EU) 2016/2341 of the European Parliament and of the Council on the activities and supervision of institutions for occupational retirement provision (OJ L 354, 23.12.2016, p. 37–85), and shall update such information at least every two years.

(2¹) The Supervision Authority shall inform the European Insurance and Occupational Pensions Authority about occupational retirement pension funds and defined-benefit occupational retirement pension funds provided in other Member States, and shall specify these Member States.

(2²) The Supervision Authority shall inform the European Insurance and Occupational Pensions Authority of any occupational retirement pension funds, regarding whom the Supervision Authority has deprived the management company of the authorisation of management, and of any defined-benefit occupational retirement pension funds whom the Supervision Authority has deprived of their activity licence.

(3) The Supervision Authority shall forward to the European Insurance and Occupational Pensions Authority once a year the following information:

1) the average amount of a capital add-on provided for in § 234 of the Insurance Activities Act per insurance undertaking;

2) the ratio of the capital add-on imposed in the previous period against the Solvency Capital Requirement with regard to all the insurance undertakings as a whole and with regard to the life insurance undertakings, reinsurance undertakings, non-life insurance undertakings and insurance undertakings specified in subsection 6 of § 16 of the Insurance Activities Act separately;

3) with regard to each disclosure provided for in clause 2 of this subsection, the ratio of the capital add-on imposed pursuant to clauses 1–3 of subsection 1 of § 234 of the Insurance Activities Act;

4) the number of insurance undertakings subject to specifications for submission of regular supervisory reports provided for in subsections 1 and 2 of § 124 of the Insurance Activities Act together with the ratio of the capital requirements, technical provisions, insurance premiums and volume of assets of such insurance undertakings against the capital requirements, technical provisions, insurance premiums and volume of assets of all the insurance undertakings respectively;

5) the consolidated report with regard to decisions or administrative acts made in misdemeanour matters in connection with violation of the obligations referred to in subsection 12 of § 224 of the Insurance Activities Act.

(4) In case the Supervision Authority is the insurance group supervisor, it shall forward to the European Insurance and Occupational Pensions Authority once a year the number of insurance groups subject to specifications for insurance group supervisory reporting provided for in subsection 7 of § 124 of the Insurance Activities Act together with the ratio of the capital requirements, insurance premiums, technical provisions and volume of assets of such insurance groups against the capital requirements, insurance premiums, technical provisions and volume of assets of all the insurance groups respectively.

(5) The Supervision Authority shall forward to the European Insurance and Occupational Pensions Authority the information that the European Insurance and Occupational Pensions Authority requires for the performance of the obligation provided for in Article 3(4) of Directive (EU) 2016/97 of the European Parliament and of the Council on insurance distribution (recast) (OJ L 26, 02.02.2016, p. 19–59).

(6) The Supervision Authority shall notify the European Insurance and Occupational Pensions Authority of a decision or an administrative act made in a misdemeanour matter in connection with violation of the obligation referred to in subsection 1² of § 224 of the Insurance Activities Act and submit the information regarding the disclosure of the decision or non-disclosure on the basis of subsection 1⁵ of § 224 of the Insurance Activities Act.

(7) The Supervision Authority shall notify the European Insurance and Occupational Pensions Authority and the financial supervision authority of another Contracting State if:

1) it appears from the activity plan of the insurance undertaking applying for an activity licence that part of the planned activities of the insurance undertaking prescribe activities in another Contracting State and such activities are likely to be significant for the insurance market of the Contracting State;

2) in the opinion of the Supervision Authority, the financial situation of such Estonian insurance undertaking that engages in insurance activities in another Contracting State has deteriorated or other risks have appeared and such circumstances may have a cross-border effect.

(8) If the Supervision Authority has serious and reasoned concerns regarding the activities of an insurance undertaking of another Contracting State in Estonia, primarily if there is a risk regarding the ensuring of the protection of the clients of insurance, it may immediately notify the financial supervision authority of the other Contracting State about its concerns, regardless the provisions of subsections 4 and 5 of § 237 of the Insurance Activities Act.

(9) The notifications submitted pursuant to subsections 7 and 8 of this section shall be sufficiently detailed to allow for a proper assessment of their contents.

(10) If the Supervision Authority and the financial supervision authority of the other Contracting State do not reach an agreement regarding the measures to be taken in case of the concerns referred to in subsection 8 of this section, the Financial Supervision Authority may refer the matter to the European Insurance and Occupational Pensions Authority and request its assistance.

§ 47. Cooperation with competent foreign authorities

(1) For the performance of its duties and exchange of information, the Supervision Authority shall cooperate with the authorities specified in subsection 2 of § 46 of this Act and foreign financial supervision authorities and other competent foreign bodies and persons, including:

1) persons who carry out liquidation, bankruptcy or other such proceedings in a foreign state;

2) persons who operate schemes for guaranteeing deposits, investor protection or other similar guarantee schemes of foreign countries;

3) persons who supervise the accuracy of the accounting and reporting of foreign issuers and financial institutions;

4) persons who supervise the auditors auditing foreign issuers and financial institutions.

5) persons who supervise the greenhouse gas emissions trading registry and use of emission allowances included in investment plan;

6) persons who supervise the agricultural commodity derivatives market.

(1¹) The Supervision Authority shall promptly submit, based on the corresponding request or reporting form, to the European Securities and Markets Authority the information which is necessary for the performance of its duties pursuant to Article 15 of Regulation (EU) No 1092/2010 of the European Parliament and of the Council on European Union macro-prudential oversight of the financial system and establishing a European Systemic Risk Board (OJ L 331, 15.12.2010, p. 1–11), Article 35 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC (OJ L 331, 15.12.2010, p. 12–47), Article 35 of Regulation (EU) No 1094/2010 of the European Parliament and of the Council establishing a European Supervisory Authority (European Insurance and Occupational Pensions

Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/79/EC (OJ L 331, 15.12.2010, p. 48–83), and Article 35 of Regulation (EU) No 1095/2010 of the European Parliament and of the Council establishing a European Supervisory Authority (European Securities and Markets Authority),

amending Decision No 716/2009/EC and repealing Commission Decision 2009/77/EC (OJ L 331, 15.12.2010, p. 84–119).

(1²) The Supervision Authority shall promptly submit, based on the corresponding request or reporting form, to European Banking Authority the information which is necessary for the performance of the duties of this European supervisory authority pursuant to Article 35 of Regulation (EU) No 1093/2010.

(1³) The Supervision Authority shall promptly submit, based on the corresponding request or reporting form, to European Insurance and Occupational Pensions Authority the information which is necessary for the performance of the duties of this European supervisory authority pursuant to Article 35 of Regulation (EU) No 1094/2010.

(1⁴) If necessary, the Supervision Authority shall promptly submit to the Joint Committee of the European Supervisory Authorities the information which is necessary for the performance of the duties of this European supervisory authority.

(1⁵) If necessary, the Supervision Authority shall promptly submit to the European Systemic Risk Board the information which is necessary for the performance of the duties of this European supervisory authority.

(1⁶) The Supervision Authority shall submit to the Joint Committee of the European Supervisory Authorities:

1) an opinion on the compliance of the consolidation group with the conditions set for financial conglomerates, in case the Supervision Authority determines that a consolidation group to which an Estonian regulated entity belongs is a financial conglomerate;

2) the information specified in clauses 1, 4 and 6 of subsection 4 of § 47⁸ of this Act and the financial conglomerate stress test results in case the Supervision Authority is a financial conglomerate coordinator.

(1⁷) The Supervision Authority co-operates with the financial supervision authorities of other Contracting States, the European Banking Authority and European Securities and Markets Authority in order to conduct financial supervision over the credit institutions issuing covered bonds. In the framework of international cooperation, the Supervision Authority forwards:

1) any relevant information at the reasoned request of the persons specified in this subsection where this is necessary for conducting financial supervision over a credit institution issuing covered bonds;

2) any relevant information, on its own initiative, pertaining to a credit institution issuing covered bonds and its covered bonds portfolio, if the Supervision Authority has grounds to believe that this may have a substantial effect on the assessment of the issue of covered bonds in another Contracting State.

(1⁸) In the course of cooperation, the Supervision Authority, on its own initiative or upon a relevant request, provides the financial supervision authority of another Contracting State with information that is material or relevant to the performance of supervisory functions under this Act, the Credit Institutions Act, the Securities Market Act, and Regulation (EU) No. 575/2013 of the European Parliament and of the Council. Information is considered material if it may significantly affect the assessment of the economic viability of a credit institution or investment firm in another Contracting State.

(1⁹) The Supervision Authority cooperates with the European Banking Authority for the application of this Act, the Credit Institutions Act, the Securities Market Act, and Regulation (EU) No. 575/2013 of the European Parliament and of the Council, in accordance with Regulation (EU) No. 1093/2010 of the European Parliament and of the Council.

(1¹⁰) Where the Supervision Authority exercises supervision on a consolidated basis over a credit institution operating as a parent undertaking in the European Union, a credit institution or investment firm controlled by a financial holding company operating as a parent undertaking in the European Union, or by a mixed financial holding company operating as a parent undertaking in the European Union, the Supervision Authority forwards all relevant information to the competent authority exercising supervision over the subsidiary of such parent undertaking. In assessing the relevance of the information, the Supervision Authority takes into account the significance of the subsidiary to the Estonian financial system.

(2) The Supervision Authority has the right to send confidential information necessary for the performance of its functions to the subjects of cooperation specified in subsection 1 of this section and to obtain such information therefrom and exchange such information therewith pursuant to the procedure provided for in this Act. The provisions of the Personal Data Protection Act and the provisions of Regulation (EU) 2016/679 of the European Parliament and of the Council on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation) (OJ L 119, 04.05.2016, p. 1–88) do not apply to transmission of personal data to foreign states if the terms and conditions specified in subsections 4¹ and 4² of § 54 of this Act are followed in the transmission of personal data.

(2¹) If a request of the Supervision Authority for the receipt of information, commencement of supervision proceedings or performance of any other such action, as well as for the presence of the employees of the Supervision Authority in proceedings organised by the financial supervision authority of the other Contracting State is not performed within a reasonable period of time or if the request is rejected, the Supervision Authority may notify of such rejection or non-performance within a reasonable period of time the relevant European supervisory authority.

(3) The Supervision Authority shall be entitled to use the rights, powers and information granted to it by this Act and other legislation or on the basis thereof in order to fulfil the request of the European supervisory authority, Contracting State and other foreign financial supervision authority for the receipt of information, restriction of a right or performance of another act or activity. If the transmitted information is related to money laundering and terrorist financing or the prevention of such activities originates from the competent authority of another Contracting State, the information may be transmitted only with the permission of this authority or within the boundaries established upon grant of such permission.

(3¹) The Supervision Authority shall fulfil the request of other foreign financial supervision authority provided for in subsection 3 of this section if:

1) it has been agreed upon in a corresponding cooperation agreement;

2) it is inevitably necessary, based on the assessment of the other foreign financial supervision authority, for the supervision activities conducted by the authority and it does not damage the Estonian public order, financial stability or other essential benefits protected by law.

(4) The request of a third country financial supervision authority specified in subsection 3 of this section shall be justified or based on a cooperation agreement.

(5) The Supervision Authority has the right to refuse to fulfil the request of a Contracting State financial supervision authority only in the following cases:

2) a proceeding has been initiated due to the same circumstances or against the same person in an Estonian court;

3) an Estonian court has made a court decision regarding the same person under the same circumstances and the decision has entered into force.

(6) The Supervision Authority shall inform the foreign financial supervision authority who submitted the request and the corresponding European supervisory authority of its refusal to fulfil the request and shall set out the grounds and reasons for such refusal.

(7) The Supervision Authority shall plan and coordinate in cooperation with the financial supervision authorities of other Contracting States and, if necessary, with the central banks and other competent authorities the activities for the prevention of the circumstances that directly endanger financial stability and the activities in case of manifestation of such circumstances, using the previously agreed communication channels for the facilitation of cooperation, if possible. The planning and coordination shall include inter alia the participation in common decision-making procedures, implementation of crisis plans, application of administrative coercion and general notification of the public.

(8) The Supervision Authority shall immediately inform the financial supervision authority of the other Contracting State, which performs financial supervision over the parent undertaking or subsidiary credit institution of a credit institution that was granted authorisation in Estonia or if a credit institution branch of the credit institution founded in the other Contracting State is acknowledged as a branch of significant importance pursuant to § 47⁴ of this Act, in case the Supervision Authority has reasonable doubt that the credit institution has difficulties and it may directly endanger the stability of the financial system or the functioning of the payment and settlement systems or the liquidity of the financial sector of any Contracting State.

(9) If the Supervision Authority exercises supervision on a consolidated basis, it shall immediately inform the appropriate financial supervision authority of the other Contracting State, the relevant European supervisory authority, the European Systemic Risk Board, the central banks of the European System of Central Banks and other bodies exercising the duties of such type if the information is pertinent and if the Supervision Authority has reasonable doubt that an undertaking or entity belonging to the consolidation group of a credit institution has difficulties and it may directly endanger the stability of the financial system or the functioning of the payment and settlement systems or the liquidity of the financial sector of any Contracting State.

(9¹) In addition to the provisions of subsection 9 of this section, the Supervision Authority consults with other appropriate securities market supervisory agencies before making a decision which may be significant for the performance of their duties, regarding the following issues:

1) changes in the composition of shareholders or organisational or governance structure of an investment firm belonging to the consolidation group of the investment firm, which require the approval or authorisation of appropriate securities market supervisory agencies;

2) sanctions imposed on investment firms or other exceptional measures taken by appropriate securities market supervisory agencies;

3) the requirement for additional own funds established pursuant to § 236¹¹ of the Securities Market Act.

(9²) Before imposing a sanction or taking any other measure pursuant to clause 2 of subsection 9¹ of this section, the Supervision Authority consults with the person exercising supervision over the consolidation group.

(9³) As an exception to subsection 9¹ of this section, the Supervision Authority is not required to consult with other securities market supervisory agencies if the situation is urgent or the consultation could prejudice the effectiveness of the decision of the Supervision Authority. In case of deciding not to consult, the Supervision Authority immediately notifies other appropriate securities market supervisory agencies about such decision.

(10) Prior to the notification specified in subsection 8 of this section, the Supervision Authority may, as an exception, apply any measures to protect the interests of the depositors, investors and other such persons. The European Commission, the European Banking Authority and the competent administrative agencies of other relevant Contracting States shall be notified of such measures immediately.

(11) If the Supervision Authority exercises supervision on a consolidated basis, it shall, in addition to the provisions of subsection 9 of this section and taking into consideration the impact of the supervision activities on the financial stability of the other Contracting State:

1) coordinate, based on the principles of continuity, the regular collection and intermediation of important or relevant information for preventing the circumstances that directly endanger the financial stability or in case of the occurrence of such circumstances;

2) plan and coordinate, based on the principles of continuity, the supervision activities in cooperation with the competent authorities of other states based on written cooperation agreements;

3) plan and coordinate the supervision activities and cooperation, including preparatory activities, with the competent authorities of other states and, if necessary, coordinate these with the central banks that constitute part of the European System of Central Banks if exceptional events become evident, if these events concern individual undertakings or the financial market as a whole.

(12) The important information specified in clause 1 of subsection 11 of this section is deemed to be the information regarding:

1) the legal, management and organisational structure of the consolidation group, including all persons, parent undertakings, subsidiaries and branches of significant importance holding an activity licence, as well as subsidiaries operating in areas of activity not requiring an activity licence and the competent authorities exercising supervision over the aforementioned persons;

2) the procedure for collection of information from persons belonging to the consolidation group and approval thereof;

3) the unfavourable developments in undertakings belonging to the consolidation group, which may affect the activities of a credit institution or investment firm or the entire consolidation group;

4) the extraordinary supervisory measures and significant penalties, which are implemented in connection with the violation of the requirements for available solvency margin provided for in Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (OJ L 176, 27.06.2013, pp 1–337).

(12¹) The cooperation agreement referred to in clause 2 of subsection 11 of this section may provide for the assignment of additional tasks to the Supervision Authority when it exercises supervision on a consolidated basis, and specify the decision-making procedure and cooperation with other competent authorities.

(13) The Supervision Authority is not required to consult with the relevant competent authorities for the implementation of the measures provided for in clause 4 of subsection 12 of this section in cases of urgency or in case consultation would reduce the efficiency of the implemented measures. In such case, the Supervision Authority shall notify the competent authorities involved of the implementation of the measures at the earliest opportunity.

(14) The Supervision Authority shall notify the financial supervision authorities of the Member States of the grant of authorisation provided for in clause 1 of subsection 3 of § 46 of this Act to a subsidiary insurance undertaking and submit the structure of the consolidation group together with the notification.

(15) Where the Supervision Authority exercises supervision on a consolidated basis and needs information held by a competent authority of another country that has already forwarded such information to a third competent authority, the Supervision Authority must, where possible, first contact the relevant third competent authority to obtain that information, in order to avoid duplicate reporting.

§ 47¹. Cooperation in conducting financial supervision

(1) A financial supervision authority of Contracting State and, in the case of a corresponding agreement with the Supervision Authority, a third country financial supervision authority which exercises supervisory control over a foreign financial institution who acts through its Estonian branch has the right, after notifying the Supervision Authority, to perform an on-site inspection of the branch in order to verify the information necessary for financial supervision, unless the Supervision Authority refuses to grant permission therefor on the grounds provided in subsection 5 of § 47 of this Act. The Supervision Authority has the right to participate in the on-site inspection of the branch. The Supervision Authority shall direct and monitor supervision proceedings in matters of market abuse within the meaning of the Securities Market Act, committed in Estonia.

(2) In order to verify information necessary to conduct financial supervision, the Supervision Authority has the right to carry out an on-site inspection of a subsidiary of a financial institution located in an Contracting State or, if a corresponding agreement exists, also in a third country, after notifying the corresponding foreign financial supervision authority thereof. The EEA financial supervision authority has the right to participate in the on-site inspection of the subsidiary.

(2¹) In the case of justified need, the Supervision Authority may verify the information, documents or explanations concerning a subject of financial supervision of another Contracting State. For this purpose, the Supervision Authority shall submit an application to the financial supervision authority of the corresponding Contracting State. The Supervision Authority is entitled to participate in the proceedings conducted to verify the information, documents or explanations if the participation in such proceedings is permitted pursuant to the legislation of the Contracting State.

(2²) In case the financial supervision authority of another Contracting State addresses the Supervision Authority in connection with the verification of the information, documents or explanations concerning a subject of financial supervision, the Supervision Authority performs the verification within the limits of its competence, permits the financial supervision authority of the Contracting State which has submitted the application to perform the above or requests an auditor or expert to perform an impartial verification and immediately give notice of the results thereof. The financial supervision authority of the Contracting State which has submitted the application is entitled to participate in the verification, if it does not personally perform the verification.

(2³) If the Supervision Authority has submitted to the financial supervision authority of another Contracting State an application for the verification of the information concerning the subject of financial supervision of this Contracting State belonging to the insurance group and the specified financial supervision authority has failed to respond to the application within two weeks or if the Supervision Authority is not provided with an opportunity to participate in the verification of information, the Supervision Authority may address the European Insurance and Occupational Pensions Authority pursuant to Article 19 of Regulation (EU) No 1094/2010 of the European Parliament and of the Council.

(2⁴) The Supervision Authority shall provide the European Insurance and Occupational Pensions Authority with an opportunity to participate in the verification of information related to the exercise of the insurance group supervision, if this is exercised by the Supervision Authority in cooperation with the other relevant financial supervision authorities.

(3) If a public offer of securities which grant or allow a holding in the share capital of a company is carried out immediately or after the expiry of a term and the registered office of the company is located outside of Estonia in an Contracting State and an application has been submitted for accepting the shares or other such securities of the company for trading at the regulated securities market of the Contracting State, the Supervision Authority shall cooperate with the financial supervision authority of the location of the registered office of the company in registration of the prospectus of the public offer of the securities.

(4) The Supervision Authority shall consult and exchange relevant information and documents with the financial supervision authority of an Contracting State for assessment of the suitability and conformity of shareholders, stockholders, members or managers, if the applicant for the authorisation of a credit institution or the person acquiring a qualifying holding is a credit institution, management company, investment fund, investment firm, insurance undertaking, payment institution, e-money institution or another person subject to financial supervision, registered in an Contracting State, or is a person belonging to the same consolidation group with such person, and shall do so also in the course of the continuous supervision of the operation over credit institutions.

(4¹) The Supervision Authority shall consult and exchange, to enhance financial stability and facilitate prudential supervision, with the financial supervision authorities of Contracting States the information related to branches of credit institutions and documents on liquidity, solvency, concentration of exposures, internal rules and rules of procedure, internal control system and compliance with requirements related to deposit guarantees.

(4²) The Supervision Authority shall promptly inform the financial supervision authority of the other Contracting State if an Estonian credit institution which branch operates in the other Contracting State has come or may come into liquidity difficulties, including the provision of information on the implemented business continuity plan and measures for restoring the financial soundness.

(4³) The Supervision Authority shall cooperate and coordinate its activities with the financial supervision authorities of other Contracting States if administrative coercion is applied or misdemeanour proceedings are carried out in connection with a cross-border incident.

(4⁴) The Supervision Authority shall provide the financial supervision authority of the other Contracting State who has filed a corresponding application or a sworn auditor or expert appointed by financial supervision authority with an opportunity to verify the information related to a financial institution or its subsidiary, including to provide the representatives of the financial supervision authority who has filed the aforementioned application to be present during the verification of the information.

(4⁵) The Supervision Authority shall inform or explain to the competent authority of the Contracting State on the basis of its request, how the Supervision Authority has taken into account in the course of supervision the information provided and the facts established by the aforementioned competent authority of the Contracting State.

(4⁶) While exercising supervision over an Estonian branch of a third country credit institution, the Supervision Authority cooperates with the supervision authority of the credit institution belonging to the consolidation group of such third country, in order to ensure supervision which will function in the entire European Union over the activities of the third country consolidation group, and compliance with the requirements of EU legislation applicable to the third country consolidation group, and to prevent any harmful effect on the financial stability of the European Union. The Supervision Authority will do everything in its power to enter into a cooperation agreement with the relevant supervision authority.

(4⁷) The Supervision Authority cooperates with the supervision authorities of entities belonging to the same consolidation group as a branch of a third country investment firm, the European Securities and Markets Authority, and the European Banking Authority to ensure comprehensive, uniform, and effective supervision of all activities of the consolidation group within the European Union, in accordance with the provisions of applicable legislation, including Regulation (EU) No 575/2013 of the European Parliament and of the Council, Regulation (EU) 2019/2033 of the European Parliament and of the Council, on prudential requirements for investment firms and amending Regulations (EU) No 1093/2010, (EU) No 575/2013, (EU) No 600/2014, and (EU) No 806/2014 (OJ L 314, 5.12.2019, pp 1–63), and as provided in Regulation (EU) No 600/2014 of the European Parliament and of the Council on markets in financial instruments and amending Regulation (EU) No 648/2012 (OJ L 173, 12.6.2014, pp 84–148).

(5) The Supervision Authority shall inform the financial supervision authority of the other Contracting State of a reasonable doubt that a person who does not fall under its supervision has violated the legislation specified in subsection 1 of § 2 of this Act within the territory of the other Contracting State.

(6) Upon receiving information from a financial supervision authority of the other Contracting State which indicates that a subject of financial supervision has violated the legislation specified in subsection 1 of § 2 of this Act, the Supervision Authority shall initiate supervision proceedings. The Supervision Authority shall inform the financial supervision authority of the other Contracting State who submitted such information of the results and, if possible, also of any significant interim results of the supervision proceedings.

(7) The Supervision Authority shall be entitled to transfer the performance of the supervision functions concerning the Estonian-based subsidiary credit institution of an Contracting State credit institution to the competent financial supervision authority of Contracting State that issued the authorisation to the parent undertaking of the credit institution, on the basis of a written agreement. The European Banking Authority shall be immediately notified of the transfer of the above right.

(8) If the Supervision Authority exercises the option specified in Article 7 (3) of Regulation (EU) No 575/2013 of the European Parliament and of the Council, it shall disclose the following information submitted in non-consolidated form:

1) the criteria applied to make sure that there is no current or foreseen material practical or legal impediment to the prompt transfer of own funds or repayment of liabilities;

2) the number of credit institutions and investment firms which act as parent companies and benefit from exercising the option specified in Article 7 (3) of Regulation (EU) No 575/2013 of the European Parliament and of the Council, and number of such parent companies which have subsidiaries in third countries.

(9) If the Supervision Authority exercises the option specified in subsection 8 of this section, it shall disclose the following information submitted in consolidated form for the Member State:

1) the total amount of consolidated own funds which are at the disposal of the third-country subsidiaries of a credit institution or investment firm that acts as a parent company benefiting from exercising the option specified in Article 7 (3) of Regulation (EU) No 575/2013 of the European Parliament and of the Council in the Member State;

2) the percentage of the own funds which are at the disposal of the third-country subsidiaries of a credit institution or investment firm that acts as a parent company benefiting from exercising the option specified in Article 7 (3) of the same Regulation in the Member State, in the total own funds of the parent company on a consolidated basis;

3) the percentage of the own funds which are at the disposal of the third-country subsidiaries of a credit institution or investment firm that acts as a parent company benefiting from exercising the option specified in Article 7 (3) of the same Regulation in the Member State, in all the own funds required under Article 92 of the same Regulation on a consolidated basis.

(10) If the Supervision Authority is not an authority exercising supervision over a financial holding company operating as parent undertaking as specified in subsection 1 of § 13⁴ of the Credit Institutions Act, a mixed financial holding company operating as parent undertaking in a Contracting State, a financial holding company operating as parent undertaking in the European Union or a mixed financial holding company operating as parent undertaking in the European Union, the Supervision Authority shall enter into a cooperation agreement with the relevant authority exercising supervision. Under the cooperation agreement, the supervisory authorities shall consult to make a common decision of the approval or specification regarding the requirement for approval of a financial holding company or mixed financial holding company or to take supervision measures within two months after obtaining an evaluation of the Supervision Authority for making the respective decision, if the Supervision Authority is the supervisory authority exercising supervision on a consolidated basis.

(11) The Supervision Authority may file an application with the European Commission to hold negotiations with one or several third countries in order to enter into an agreement on how to exercise supervision for compliance with the requirements regarding the group capital test for the purposes of Article 8 of Regulation (EU) 2019/2033 of the European Parliament and of the Council with regard to the following investment firms:

1) investment firms whose parent undertaking has been founded in a third country;

2) investment firms in third countries whose parent undertaking is founded in the European Union.

(12) The Supervision Authority may, in accordance with Article 33 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council or Article 22 of Regulation (EU) No 1095/2010 of the European Parliament and of the Council, in order to perform the duties of supervision and exchange information, to enter into cooperation agreements with third country supervisory authorities that are responsible for one or several following duties:

1) supervision of financial institutions and financial markets, including supervision of such financial sector entities that are authorised to operate as central counterparties, if the central counterparties are recognised under Article 25 of Regulation (EU) No 648/2012 of the European Parliament and of the Council on OTC derivatives, central counterparties and trade repositories (OJ L 201, 27.07.2012, pp 1–59);

2) liquidation and bankruptcy proceedings and other similar proceedings pertaining to investment firms;

3) exercising supervision of bodies responsible for liquidation and bankruptcy proceedings and other similar proceedings pertaining to investment firms;

4) conduct of statutory audits of financial institutions and authorities administering guarantee schemes;

5) exercising supervision of persons conducting statutory audits of the financial statements of financial institutions;

6) exercising supervision of persons operating in the markets of emission allowances with the purpose of obtaining a summary overview of the financial and spot markets;

7) exercising supervision of persons operating in the markets of agricultural commodity derivatives with the purpose of obtaining a summary overview of the financial and spot markets.

(13) Where the Supervision Authority exercises supervision of the consolidation group of a credit institution, the Supervision Authority informs the European Banking Authority about the activities of the supervisory college, including about any emergency situations, and submits to the European Banking Authority all information which is relevant for harmonising the supervision activities.

§ 47³. Common decision-making procedure in ensuring capital adequacy and liquidity

(1) The Supervision Authority shall do everything in its power to reach common decision with the relevant financial supervision authority of Contracting State regarding the implementation of requirements specified in §§ 63¹ and 82¹, subsection 5 of § 96 and § 104² of the Credit Institutions Act with the objective to determine the adequate level of own funds and compliance with the liquidity requirements of the consolidation group of the respective credit institution, and to provide guidance for additional own funds to the consolidation group of the respective credit institution pursuant to § 104³ of the Credit Institutions Act. In this respect, the financial position and risk profile of the consolidation group shall be taken into account on the basis of consolidated and individual data with regard to each subsidiary.

(2) The results of the common decision-making procedure specified in subsection 1 of this section shall also serve as a basis for deciding on the necessity to issue the precepts specified in subsection 4 of § 104 and subsection 1 of § 104² of the Credit Institutions Act and on the necessity to provide the guidance specified in subsection 1 of § 104³ of the Credit Institutions Act in respect of each credit institution that is part of the consolidation group.

(3) Where the Supervision Authority exercises supervision on a consolidated basis, it submits, after conducting the proceeding specified in subsection 1 of this section, to the relevant financial supervision authority of the other Contracting State the report concerning the consolidation group and each subsidiary and containing the risk assessment and the proposal for the common decision. The risk assessment is prepared in accordance with §§ 63¹, 82, 96, 104² and 104³ of the Credit Institutions Act.

(4) Pursuant to the provisions of subsection 1 of this section, the Supervision Authority shall reach the common decision with the relevant financial supervision authority of the other Contracting State regarding the capital adequacy, compliance with the liquidity requirements and necessity for providing guidance for additional own funds within four months after the submission of the report and proposal specified in subsection 3 of this section or after the receipt thereof.

(5) When making the common decision, the financial standing and risks of the subsidiary credit institutions that are part of the consolidation group shall also be taken into account. The relevant financial supervision authorities shall reason the opinions of the common decision as to capital adequacy and compliance with the liquidity requirements.

(6) In case of any differences related to reaching the common decision, the Supervision Authority shall, in case it exercises supervision on a consolidated basis, consult the European Banking Authority on its own initiative or if requested by the relevant financial supervision authority of the other Contracting State. The Supervision Authority shall consider taking into account the opinions of the European Banking Authority or submit reasons in case of not taking into account the significant part thereof.

(7) If no common decision is reached within the term specified in subsection 4 of this section, the Supervision Authority will be entitled, in case it exercises supervision on a consolidated basis, based on the consolidated data after the additional analysis by the relevant financial supervision authority of Contracting State of the risk assessments assigned to the subsidiaries, to decide on the necessity for the issue of a precept provided for in subsection 5 of § 96, subsection 4 of § 104 or subsection 1 of § 104² of the Credit Institutions Act and providing the guidance specified in the second sentence of subsection 1 of § 104³ of the Credit Institutions Act to a credit institution that was granted authorisation in Estonia, on a consolidated or sub-consolidated basis. In making these decisions, the Supervision Authority takes into account the opinions and reservations of the relevant financial supervision authority of the other Contracting State if these are submitted within the term specified in subsection 4 of this section.

(8) If the financial supervision authority of the other Contracting State, within the term specified in subsection 4 of this section, has notified the European Banking Authority of the failure to reach a common decision specified in subsection 7 of this section, and has addressed the European Banking Authority in accordance with Article 19 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council, the Supervision Authority waits for the resolution of the European Banking Authority and thereafter makes its decision, which is in compliance with the resolution of the European Banking Authority. The European Banking Authority is not addressed after the expiry of the term specified in subsection 4 of this section or after a common decision has been reached.

(9) Where the Supervision Authority exercises supervision on a consolidated basis, it shall submit the common decision or a decision specified in subsections 7 and 8 of this section which produces legal consequences and is binding, together with the corresponding reasons to the credit institution which is the parent undertaking of the consolidation group, and to all the relevant financial supervision authorities.

(10) The common decision specified in this section and the decisions specified in subsections 7 and 8 of this section are updated at least once a year or under exceptional circumstances in case this is demanded on the basis of a reasoned request by a financial supervision authority exercising supervision over a subsidiary credit institution of the consolidation group in connection with updating of the precepts provided for in subsection 5 of § 96, subsection 4 of § 104 and subsection 1 of § 104² of the Credit Institutions Act and the guidance specified in subsection 1 of § 104³ of the Credit Institutions Act. The Supervision Authority will do everything in its power to agree on the updating of decisions and guidelines concerning the existence of the exceptional circumstances referred to in the first sentence of this subsection with the financial supervision authority of the other Contracting State concerned.

§ 47⁴. Common decision-making procedure in determining branch of significant importance

(1) The Supervision Authority uses its best endeavours to reach a common decision in cooperation with the financial supervision authority of the other Contracting State in determining the significant importance of a branch of a credit institution or of an investment firm specified in Article 95 of Regulation (EU) No 575/2013 of the European Parliament and of the Council (hereinafter branch of a credit institution) in Estonia or the other Contracting State.

(2) If a branch of a credit institution that was granted authorisation in Estonia and being opened in the other Contracting State is acknowledged as a branch of significant importance pursuant to Article 51 of Directive 2013/36/EU of the European Parliament and of the Council on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC (OJ L 176, 27.06.2013, p. 338–436), the Supervision Authority shall submit to the financial supervision authority of this Contracting State the information necessary for exercising financial supervision over the activities of the branch, including the relevant risk assessments, implemented measures of administrative coercion and measures related to liquidity risks in the currency of this Contracting State.

(3) The Supervision Authority may file an application to the financial supervision authority of the home Contracting State of a credit institution regarding the acknowledgement of a branch of the credit institution founded in Estonia as the branch of significant importance, being primarily governed by one or several of the following conditions:

1) the market share of deposits taken by the branch exceeds two percent of the total scope of deposits taken by credit institutions operating in Estonia;

2) the suspension or termination of the activities of the branch will probably affect the liquidity of Estonia's financial market and the functioning of the payment and settlement system;

3) the number of the clients of the branch constitutes a considerable share of the total number of clients in Estonia using the financial services.

(4) If the Supervision Authority fails to reach within two months a common decision with the financial supervision authority of the other Contracting State on determining the branch of significant importance specified in subsection 3 of this section, the Supervision Authority shall be entitled within the next two months to make an independent decision regarding the significant importance of this branch taking into account the reasoned opinions and reservations of the relevant financial supervision authority of the other Contracting State. The decision of the Supervision Authority on determining the significant importance of a credit institution’s branch founded in Estonia shall be communicated, together with reasons, to the relevant financial supervision authority of the other Contracting State.

(5) If a branch founded in Estonia of a credit institution of the other Contracting State was acknowledged as branch of significant importance pursuant to subsection 3 or 4 of this section, the Supervision Authority shall be entitled to request from the financial supervision authority of the other Contracting State the information, which is necessary for exercising financial supervision over the activities of this branch, and its involvement in the planning and coordination of the co-operation in the field of financial supervision specified in Article 112 (1) (c) of Directive 2013/36/EU of the European Parliament and of the Council.

(6) The provisions of this section regarding the determining of the significant importance of the branch of a credit institution of Estonia or the other Contracting State are also applied in respect of the branch of an investment firm of Estonia or the other Contracting State, excluding the investment firms which comply with the terms and conditions specified in Article 95 (2) or (1) or Article 96 (1) of Regulation (EU) No 575/2013 of the European Parliament and of the Council. In determining a branch of significant importance, the provisions of clause 1 of subsection 3 of this section are not applied in respect of a branch of investment firm.

(5²) If the financial supervision authority of the other Contracting State, within the term specified in subsection 4 of this section, has addressed the European Banking Authority on the issue of determining the branch of significant importance, the Supervision Authority shall postpone the decision-making and wait for the resolution of the European Banking Authority and thereafter make its decision in compliance with the resolution of the European Banking Authority.

(6) The provisions of this section regarding the determining of the significant importance of the branch of a credit institution of Estonia or the other Contracting State are also applied in respect of the branch of an investment firm of Estonia or the other Contracting State, excluding the investment firms which comply with the terms and conditions specified in Article 20 (2) or (3) or Article 46 (1) of the Directive 2006/49/EC of the European Parliament and of the Council on the capital adequacy of investment firms and credit institutions (OJ L 177, 30.06.2006, pp. 201–255). In determining a branch of significant importance, the provisions of clause 1 of subsection 3 of this section are not applied in respect of a branch of investment firm.

§ 47⁵. Cooperation in Colleges of Supervisors

(1) If the Supervision Authority exercises supervision on a consolidated basis, it must form the college of financial supervision authorities (hereinafter the College) to enhance the performance of the tasks specified in Articles 107 and 108 and Article 130 (1) of Directive 2013/36/EU of the European Parliament and of the Council or in Article 48 of Directive (EU) 2019/2034 of the European Parliament and of the Council on the prudential supervision of investment firms and amending Directives 2002/87/EC, 2009/65/EC, 2011/61/EU, 2013/36/EU, 2014/59/EU and 2014/65/EU (OJ L 314, 5.12.2019, pp 64–114) and, where necessary, to coordinate the financial supervision activities and co-operation with the financial supervision authorities of the third countries concerned. The College is formed on the basis of written agreement among the financial supervision authorities concerned.

(1¹) If the Supervision Authority exercises supervision on a consolidated basis to enhance the performance of the tasks specified in Article 112 (1), Article 114 (1) and Article 115 (1) of Directive 2013/36/EU of the European Parliament and of the Council, the Supervision Authority shall form the College also in case the head offices of all the credit institutions operating as parent undertakings in the European Union, of financial holding companies operating as parent undertakings in the European Union or of cross-border subsidiaries of mixed financial holding companies operating as parent undertakings in the European Union are in a third country, applying the confidentiality requirements provided for in § 54 of this Act, and, as necessary, the requirements deriving from Articles 76 and 81 of Directive 2014/65/EU of the European Parliament and of the Council on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (OJ L 173, 12.6.2014, p. 349–496) to the supervisory authority of the third country

(1²) The following may be members of the College:

1) the securities market supervisory agencies responsible for the supervision of subsidiaries of a financial institution operating as a parent undertaking in the European Union or subsidiaries of a financial holding company operating as a parent undertaking in the European Union or subsidiaries of a mixed financial holding company operating as a parent undertaking in the European Union, and the securities market supervisory agency of a Contracting State hosting a branch of a systemically important credit institution;

2) the central banks comprised in the European System of Central Banks;

3) the third country supervisory authorities governed by confidentiality requirements equivalent to those provided in § 54 of this Act.

(1³) Where appropriate, the College may also be established where subsidiaries of a consolidation group of investment firms headed by an investment firm operating in the European Union, an investment holding company operating as a parent undertaking in the European Union or a mixed financial holding company operating as a parent undertaking in the European Union are located in a third country.

(2) If the College has not been formed on the basis of subsection 1 of this section, the Supervision Authority shall form the College also in the case specified in subsection 2 of § 47⁴ of this Act and in case the Supervision Authority has been appointed the financial conglomerate coordinator pursuant to § 1106 of the Credit Institutions Act.

(3) The duties of the College include:

1) exchange of information, including the submission of the information necessary for exercising supervision on a consolidated basis;

2) entry into agreements for the performance of the supervision tasks or outsourcing thereof;

3) determining of common supervisory inspection programmes pursuant to subsection 10 of § 96 of the Credit Institutions Act;

4) improving the efficiency of exercising of financial supervision, primarily reducing duplication in connection with requesting information from the subjects of financial supervision;

5) coordination of uniform application of prudential norms;

6) coordination of necessary activities for preventing the circumstances that directly endanger the financial stability or necessary activities upon the occurrence of such circumstances pursuant to subsection 7 of § 47 of this Act.

7) coordination of information requests where it is necessary for facilitating supervision on a consolidated basis in accordance with Article 7 of Regulation (EU) 2019/2033 of the European Parliament and of the Council;

8) coordination of information requests in cases where several securities market supervisory agencies of investment firms that are part of the same consolidation group need to request either from the securities market supervisory agency of a clearing member’s home Contracting State or from the securities market supervisory agency of the qualifying central counterparty information relating to the margin model and parameters used for the calculation of the margin requirement of the relevant investment firms;

9) the exchange of information among all securities market supervisory agencies and the European Banking Authority in accordance with Article 21 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council, and among all securities market supervisory agencies and the European Securities and Markets Authority in accordance with Article 21 of Regulation (EU) No 1095/2010 of the European Parliament and of the Council.

(3¹) The information specified in clause 1 of subsection 3 of this section includes but is not limited to:

1) information on the legal and governance structure of the investment firm consolidation group, including a description of its organisational structure covering all regulated and unregulated entities, unregulated subsidiaries and parent undertakings, and competent authorities of the regulated entities within the consolidation group of investment firms;

2) information on the procedures for the collection of information from the investment firms in an investment firm consolidation group, and the procedures for the verification of that information;

3) information on any adverse developments in investment firms or in other entities of an investment firm consolidation group, which could seriously affect those investment firms;

4) information on any significant sanctions and exceptional measures taken by the Supervision Authority in accordance with this Act or other laws, or on equivalent measures in another Contracting State;

5) information on the specific own funds requirements imposed pursuant to clause 9 of § 235 of the Securities Market Act or equivalent requirements in another Contracting State.

(3²) If relevant information is not submitted to the Supervision Authority in accordance with clause 1 of subsection 3 of this section, or if a request for cooperation, in particular, for the exchange of relevant information, has been rejected or has not been responded to within a reasonable time, the Supervision Authority may address the European Banking Authority in accordance with Article 19 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council.

(4) If the Supervision Authority does not exercise supervision on a consolidated basis, it shall be entitled to request its involvement in the College in case the Supervision Authority exercises financial supervision over a subsidiary credit institution that is part of a consolidation group or if a branch founded in Estonia and belonging to a credit institution of the other Contracting State is acknowledged as a branch of significant importance.

(4¹) The Supervision Authority may participate in the activities of the relevant College if a financial holding company or mixed financial holding company has received an approval pursuant to § 13⁴ of the Credit Institutions Act and has been established in Estonia.

(5) The Supervision Authority may make a proposal to Eesti Pank to participate in the activities of the College.

(6) In the cases specified in subsections 1 and 2 of this section, the Supervision Authority shall:

1) convene the meetings of the College, submitting the agenda of the meeting to the members of the College before organising the meeting, and direct and organise the activities of the College;

2) decide on which financial supervision authorities or other competent authorities, including central banks and financial supervision authorities of third countries, participate in the meetings of the College or the activities thereof;

3) submit by due time to all the financial supervision authorities concerned the information regarding the activities of the College;

4) notify in due time all the financial supervision authorities concerned and the European Banking Authority of the measures implemented by the College.

(6¹) When conducting consolidated supervision, the Supervision Authority takes into account the significance of the supervision activities planned or coordinated by the financial supervision authorities that are members of the college.

(7) As regards the communication of information, a person participating in the activities of the College shall be governed by the provisions of subsection 4¹ of § 54 of this Act.

(8) Where the Supervision Authority exercises supervision over a subsidiary or branch of a third country credit institution, it must, for the purposes of applying subsection 4⁶ of § 47¹ of this Act, form a college that meets the conditions provided in subsections 1², 1³, 3–4, and 5–7 of this section.

(9) When forming the college, the following is taken into account:

1) where a college has been formed to exercise supervision over a credit institution that is a subsidiary of a third country consolidation group, the supervision must also cover the branches of a third country credit institution classified as Class 1 that belong to the same consolidation group;

2) where a third country consolidation group has established branches of a third country credit institution in more than one Contracting State of the European Union, but has no subsidiaries of such a third country credit institution that would be subject to the supervision by a college provided in this section, a college is formed to exercise supervision over the branches of a third country credit institution classified as Class 1 that belong to the same consolidation group;

3) where a third country consolidation group has established branches of a third country credit institution classified as Class 1 in more than one Contracting State of the European Union and the subsidiary of at least one such third country credit institution, which would not be subject to the supervision by the college provided in this section, a college is formed to exercise supervision over the third country branches and subsidiaries belonging to the same consolidation group.

(10) In addition to as provided in subsections 1², 1³, 3–4, and 5–7 of this section, the college must:

1) prepare a report on the structure and activities of a third country consolidation group within the European Union and update it once a year;

2) share information on the results of the supervisory review and evaluation provided in subsections 1, 5, and 10 of § 96; subsections 1, 3, and 3¹ of § 97², and clause 3 of subsection 3 of § 53 of this Act;

3) do everything in its power to coordinate the application of the supervisory measures provided in clauses 1¹, 5, 16¹, 19, 20, and 22–24 of subsection 1 of § 104 of the Credit Institutions Act;

4) to engage in and coordinate cooperation with the relevant third country supervisory authorities, where appropriate.

§ 47⁶. Insurance group college of supervisors

(1) If the Supervision Authority is designated the insurance group supervisor pursuant to § 241 of the Insurance Activities Act, the Supervision Authority shall form the college of financial supervision authorities (hereinafter insurance group college of supervisors).

(2) The objective of the insurance group college of supervisors is to enhance the performance of the functions specified in subsection 1 of § 242 of the Insurance Activities Act, cooperation, making joint decisions and exchange of information with the financial supervision authorities provided for in subsection 3 of this section and, if necessary, to coordinate the financial supervision activities and cooperation with the relevant third country financial supervision authorities.

(3) If the Supervision Authority is designated the insurance group supervisor, it shall involve in the work of the insurance group college of supervisors:

1) the financial supervision authority of the Contracting State that has issued an authorisation to an insurance undertaking belonging to the insurance group;

2) the European Insurance and Occupational Pensions Authority pursuant to Article 21 of Regulation (EU) No 1094/2010 of the European Parliament and of the Council;

3) the financial supervision authority of the registered office of the branch of significant importance pursuant to the provisions of Article 354(1) of Commission Delegated Regulation (EU) No. 2015/35 supplementing Directive 2009/138/EC of the European Parliament and of the Council on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) (text with EEA relevance) (OJ L 12, 17.01.2015, p. 1–797).

(4) In addition to the provisions of subsection 3 of this section, the Supervision Authority may involve in the work of the insurance group college of supervisors an institution that exercises supervision pursuant to the provisions of Article 354(2) of Commission Delegated Regulation (EU) No. 2015/35.

(5) The institutions specified in clause 3 of subsection 3 and subsection 4 of this section shall participate exclusively in the exchange of information of the insurance group college of supervisors.

(6) The Supervision Authority shall agree with the other financial supervision authorities on the establishment and the functioning of the coordination arrangements of the insurance group college of supervisors pursuant to Article 355 of Commission Delegated Regulation (EU) No. 2015/35.

(6¹) The cooperation arrangement shall include:

1) the description of the process of reaching joint decisions specified in subsection 2 of § 241 and subsection 4 of § 243, and the process of imposing a capital add-on on the insurance group provided for in § 244 of the Insurance Activities Act;

2) the description of the process of consultations on the cooperation arrangement in the insurance group college of supervisors;

3) the description of the process of consultations between the relevant financial supervision authorities, if the insurance group supervisor has submitted a notification provided for in clause 2 of subsection 1 of § 242 of the Insurance Activities Act.

(6²) In addition to the provisions of subsection 6¹ of this section, the cooperation arrangement may include the descriptions of how the consultations or reaching an agreement between the relevant financial supervision authorities are conducted for the implementation of the provisions of subsections 5–7 of § 47⁷ of this Act and subsection 4 of § 88, subsection 2 of § 89, subsection 5 of § 90, subsection 5 of § 92, subsection 7 of § 239, subsections 1 and 1¹ of § 240, subsections 2 and 3 of § 242, subsections 2–4 of § 245, subsections 2 and 4 of § 246, subsection 4 of § 247 and subsections 2 and 9 of § 248 of the Insurance Activities Act, and cooperation with other financial supervision authorities.

(7) To enhance the functioning of the insurance group college of supervisors, certain functions may be performed by the college of supervisors with reduced panel.

(8) If the financial supervision authorities have dissenting opinions with regard to the coordination arrangements specified in subsection 6 of this section, the Supervision Authority may address the European Insurance and Occupational Pensions Authority pursuant to Article 19 of Regulation (EU) No 1094/2010 of the European Parliament and of the Council.

(9) If a financial supervision authority belonging to the insurance group college of supervisors has addressed the European Insurance and Occupational Pensions Authority in the case provided for in subsection 8 of this section and the Supervision Authority is the insurance group supervisor, the Supervision Authority shall adopt a resolution with regard to the coordination arrangements in accordance with the resolution of the European Insurance and Occupational Pensions Authority and deliver it to all the financial supervision authorities belonging to the insurance group college of supervisors.

(10) In addition to the provisions of this section, the Insurance Activities Act and Regulation (EU) No 1094/2010 of the European Parliament and of the Council, the coordination arrangements may envisage additional functions for the insurance group supervisor, other financial supervision authorities belonging to the college and the European Insurance and Occupational Pensions Authority, if these enhance supervision over the insurance group and do not affect the general rights and obligations of the financial supervision authorities belonging to the insurance group college of supervisors related to exercising supervision.

(11) The functions of the insurance group college of supervisors shall include, inter alia, the analysis of the financial condition of the insurance group, if the insurance group supervisor has submitted to the insurance group college of supervisors a notice concerning the non-compliance with the Solvency Capital Requirement of the insurance group or risk thereof.

(12) As regards the communication of information, a person participating in the activities of the insurance group college of supervisors shall be governed by the provisions of subsection 4¹ of § 54 of this Act.

(13) The provisions of Article 357 of Commission Delegated Regulation (EU) No. 2015/35 shall also apply to the exchange of information in the insurance group college of supervisors.

(14) If, in the opinion of the Supervision Authority, the insurance group supervisor fails to duly perform its duties or if the cooperation in the insurance group college of supervisors does not function, the Supervision Authority may address the European Insurance and Occupational Pensions Authority pursuant to Article 19 of Regulation (EU) No 1094/2010 of the European Parliament and of the Council.

(15) In case the Supervision Authority is the insurance group supervisor, it shall provide the European Insurance and Occupational Pensions Authority with information about the activities of the insurance group college of supervisors and the difficulties encountered, as necessary for development of the guidelines of the colleges of said Authority.

§ 47⁷. Cooperation in exercising supervision over insurance group and exchange of information

(1) The Supervision Authority shall cooperate with the other relevant financial supervision authorities, especially in case an insurance undertaking belonging to the insurance group has fallen into financial difficulties.

(2) The Supervision Authority shall promptly transmit to the relevant financial supervision authorities the information which is essential in exercising supervision over an insurance undertaking or the insurance group or is otherwise significant for the financial supervision authority or exchange other information with the relevant financial supervision authorities at their request.

(3) If the other relevant financial supervision authority has failed to transmit to the Supervision Authority the relevant information or request for cooperation, e.g. for exchange of relevant information, the request has been rejected or no response thereto has been given within two weeks, the Supervision Authority may address the European Insurance and Occupational Pensions Authority pursuant to Article 19 of Regulation (EU) No 1094/2010 of the European Parliament and of the Council.

(4) The Supervision Authority shall promptly require the convening of the other relevant financial supervision authorities at least in the following cases:

1) material violation of the Solvency Capital Requirement or the Minimum Capital Requirement by an individual insurance undertaking has become known;

2) material violation of the Solvency Capital Requirement by the insurance group has become known;

3) other extraordinary circumstances take place.

(5) If the Supervision Authority must adopt a resolution concerning an Estonian insurance undertaking belonging to the insurance group and this resolution has an impact on the supervision over an undertaking of another Contracting State belonging to the insurance group, the Supervision Authority shall consult, prior to adoption of the resolution, the insurance group college of supervisors on the following issues concerning the Estonian insurance undertaking:

1) changes in the composition of shareholders, management structure and organisation of work, which require the approval or authorisation of the Supervision Authority;

2) applicable major sanctions and exceptional measures, including the imposing of a capital add-on and establishment of restrictions on the use of the internal model;

3) extension of the recovery period pursuant to subsection 4 of § 93 or subsection 1 of § 94 of the Insurance Activities Act.

(6) In the adoption of the resolutions specified in clauses 2 and 3 of subsection 5 of this section, the Supervision Authority must consult the insurance group supervisor. If the resolution of the Supervision Authority is based on the information received from another relevant financial supervision authority, the Supervision Authority must also consult the respective financial supervision authority.

(7) The Supervision Authority may decide not to consult the insurance group college of supervisors on issues specified in subsection 5 of this section in cases of urgency or where such consultation may jeopardise the effectiveness of the resolution of the Supervision Authority. In such case, the Supervision Authority shall inform the relevant financial supervision authority immediately after the entry into force of the resolution.

(8) If the Supervision Authority is the insurance group supervisor, it may, for the performance of the obligations provided for in § 242 of the Insurance Activities Act, submit to the financial supervision authority of the location of the leading undertaking of the insurance group a request for the receipt of relevant information concerning the leading undertaking of the insurance group.

(9) If the Supervision Authority is the insurance group supervisor and it requires for the supervision the information which an undertaking belonging to the insurance group has submitted to its financial supervision authority, the Supervision Authority shall request the specified information primarily from such financial supervision authority.

(10) If the Supervision Authority exercises supervision over the leading undertaking of the insurance group, but the Supervision Authority is not the insurance group supervisor, it is required, at the request of the insurance group supervisor, to submit thereto the information concerning the leading undertaking of the insurance group.

(11) The Supervision Authority is entitled to request the necessary information from a related undertaking of an insurance undertaking specified in subsection 1 of § 239 of the Insurance Activities Act, an undertaking who is participating in an insurance undertaking and a subsidiary of a participating undertaking directly, unless the insurance undertaking transmits to the Supervision Authority the information within a reasonable period of time.

§ 47⁸. Cooperation in exercising supplementary supervision over financial conglomerates and exchange of information

(1) The Supervision Authority shall, in the identification of a financial conglomerate provided for in subsection 1 of § 110¹ of the Credit Institutions Act, cooperate with the financial supervision authorities which have granted an authorisation to the relevant regulated entity specified in subsection 1 of § 110² of the Credit Institutions Act (hereinafter regulated entity) and provide to them its opinion on the compliance of the consolidation group in question with the conditions established for financial conglomerates.

(2) When exercising supplementary supervision at financial conglomerate level (hereinafter supplementary supervision), the Supervision Authority shall cooperate with the relevant financial supervision authorities specified in subsection 2 of § 110² of the Credit Institutions Act.

(3) The Supervision Authority shall provide the other relevant financial supervision authorities with the information which is necessary for exercising supplementary supervision over the activities of a regulated entity in a financial conglomerate or which is otherwise important for the financial supervision authority.

(4) The Supervision Authority shall collect and exchange with the other relevant financial supervision authorities the information concerning at least the following circumstances and persons:

1) legal structure of a financial conglomerate, all of its entities, including subsidiaries and significant branches, and the organisational structure and management scheme of a financial conglomerate;

2) the strategy of the financial conglomerate;

3) the financial situation of the financial conglomerate, including compliance of the available solvency margin with the requirements, the intra-group transactions of the financial conglomerate, risk concentration and profitability;

4) persons who have the total holding of at least 10 per cent in all the entities in a financial conglomerate;

5) the internal control system and risk management principles of the financial conglomerate;

6) the financial supervision authorities exercising supervision over the activities of regulated entities in a financial conglomerate;

7) procedures for the collection of information from the entities in a financial conglomerate, and the verification of the collected information;

8) events related to an Estonian regulated entity or another entity, which may materially affect the regulated entities;

9) major sanctions and other exceptional measures taken by the Supervision Authority regarding an Estonian regulated entity.

(5) In case the Supervision Authority exercises supervision over a regulated entity in a financial conglomerate, but the Supervision Authority is not the financial conglomerate coordinator, it shall, at the request of the coordinator, submit to the latter the information concerning the regulated entity. In case the Supervision Authority makes a decision on the approval or specification with regard to the requirement for approval of or supervision measures concerning a mixed financial holding company and the Supervision Authority is not the coordinator of the mixed financial holding company appointed pursuant to § 110⁶ of the Credit Institutions Act, the consent of such coordinator is required for making a decision or a common decision.

(5) In case of disagreements related to the consent of the coordinator provided in subsection 5 of this section, the Supervision Authority may address the European Banking Authority or the European Insurance and Occupational Pensions Authority. A decision made pursuant to this subsection does not affect the obligations provided in Chapter 9¹ of the Credit Institutions Act or performance thereof.

(6) In case the Supervision Authority adopts a resolution regarding an Estonian regulated entity in a financial conglomerate, which influences the supervision over an entity of another Contracting State in the financial conglomerate, the Supervision Authority shall, before the adoption of the resolution, consult the financial supervision authority of such Contracting State on the following issues concerning the Estonian regulated entity:

1) changes in the shareholder, management or organisational structure, which require the approval or authorisation of the Supervision Authority;

2) applicable major sanctions and exceptional measures.

(7) The Supervision Authority may decide not to consult the financial supervision authority of another Contracting State on issues specified in subsection 6 of this section in cases of urgency or where such consultation may jeopardise the effectiveness of the resolution of the Supervision Authority. In such case, the Supervision Authority shall inform the relevant financial supervision authority of another Contracting State immediately after the entry into force of the resolution.

(8) The Financial Supervision Authority shall annually assess, in cooperation with other relevant financial supervision authorities, the waiver of the application of supplementary supervision and review the rates and risk-based assessments provided for in § 110³ of the Credit Institutions Act.

§ 47⁹. Cooperation in prevention of money laundering and terrorist financing

(1) In case of credit and financial institutions belonging to a consolidation group, the Supervision Authority shall cooperate in prevention of money laundering and terrorist financing, where appropriate, with the competent authorities of the Member States where the permanent business establishments of the consolidation group are located.

(1¹) The Supervision Authority cooperates with the Financial Intelligence Unit and exchanges with it relevant information related to the prevention of money laundering and terrorist financing in the course of exercising supervision over a branch of a third country credit institution.

(1²) The cooperation and exchange of information specified in subsection 11 of this section must not prejudice any proceedings conducted by either authority pursuant to this Act, the Credit Institutions Act, the Money Laundering and Terrorist Financing Prevention Act, the Administrative Procedure Act, the Investment Funds Act, and the Penal Code.

(2) If a payment institution or e-money institution of another Member State provides services in Estonia through an agent, branch or other permanent business establishment, the Supervision Authority shall cooperate in prevention of money laundering and terrorist financing with the competent authority of said Member State.

(3) The confidential information received by the Supervision Authority while performing the obligations deriving from the Money Laundering and Terrorist Financing Prevention Act, shall be used by the Supervision Authority only for performance of its obligations in the area of prevention of money laundering and terrorist financing, appropriate regulation of prudential requirements and supervision of credit and financial institutions, including in judicial proceedings.

(4) The Authority has the right to submit proposals pursuant to Regulation (EU) 2024/1620 of the European Parliament and of the Council establishing the Authority for Anti-Money Laundering and Countering the Financing of Terrorism and amending Regulations (EU) No 1093/2010, (EU) No 1094/2010 and (EU) No 1095/2010, (OJ L, 2024/1620, 19.6.2024), a reasoned request to the Authority for Anti-Money Laundering and Countering the Financing of Terrorism established pursuant to that Regulation for access to the central database on the prevention of money laundering and terrorist financing referred to in Article 11 of the same Regulation and for obtaining the information collected therein, where such information is necessary for exercising financial supervision.

§ 47¹⁰. Collaboration platform

(1) Upon appearance of the circumstances referred to in subsections 7 and 8 of § 46³ of this Act, the Supervision Authority may make a proposal to the European Insurance and Occupational Pensions Authority to set up and coordinate a collaboration platform, or to set it up on its own in cooperation with the relevant financial supervision authorities to enhance exchange of information and collaboration among the relevant financial supervision authorities.

(2) The setting up of a collaboration platform is without prejudice to the functions and rights of the Supervision Authority in carrying out financial supervision.

(3) At the request of the European Insurance and Occupational Pensions Authority, the Supervision Authority shall immediately submit the information necessary for proper functioning of the collaboration platform.

§ 47¹¹. Cooperation in area of cybersecurity

(1) The Supervision Authority cooperates with the Information System Authority. This cooperation includes, inter alia:

1) consultation with the Information System Authority in accordance with Article 42(5) of Regulation (EU) 2022/2554 of the European Parliament and of the Council;

2) requesting technical advice and assistance from the Information System Authority and entering into a cooperation agreement, in particular in accordance with Article 47(3) and (4) of Regulation (EU) No 2022/2554 of the European Parliament and of the Council;

3) exchange of information between the Supervision Authority and the Information System Authority, including on cyber incidents and cyber threats and on issues concerning subjects of financial supervision providing vital services;

4) coordinating cooperation in relation to advanced testing of the digital operational resilience of subjects of financial supervision.

(2) The Supervision Authority cooperates, where appropriate, with the competent authority responsible for oversight of cybersecurity of the other Contracting State, in particular upon consultation in accordance with Article 42(5) of Regulation (EU) No 2022/2554 of the European Parliament and of the Council.

(3) Where the notification and reports referred to in Article 19(4) of Regulation (EU) 2022/2554 of the European Parliament and of the Council are submitted to the Supervision Authority by a provider of a vital service as specified in subsection 1 of § 38 of the Emergency Act, the Supervision Authority immediately forwards the notification and the reports to Eesti Pank.

(4) The cooperation of the Supervision Authority with the European Banking Authority, the European Securities and Markets Authority, the European Insurance and Occupational Pensions Authority and the European Central Bank includes, in addition to the provisions of this Chapter, the cooperation and exchange of information provided in Article 48(2) and Article 49(2) of Regulation (EU) No 2022/2554 of the European Parliament and of the Council.

§ 47¹². Contribution to the reimbursement of expenses incurred by the institutions of the European Union in connection with supervision and membership

The Supervisory Authority is entitled to reimburse the European Central Bank, the European Banking Authority, the European Securities and Markets Authority, the European Insurance and Occupational Pensions Authority, and the Authority for Anti-Money Laundering and Countering the Financing of Terrorism for expenses related to financial supervision or the fulfillment of obligations undertaken before these authorities, and to pay membership fees and other charges.

§ 48. Provision of information

(1) The Supervision Authority has the right to obtain, based on a request, information necessary for the performance of its functions from Eesti Pank, the Ministry of Finance, the Financial Intelligence Unit and other authorities of executive power.

(2) The Supervision Authority is required to provide, based on a request, Eesti Pank, the Ministry of Finance, the Guarantee Fund and the Financial Intelligence Unit with information necessary for the performance of their functions, unless it is prohibited by law. Such cooperation must also not harm any ongoing taking of evidence, investigation or proceeding.

§ 48¹. Obligation to assist Supervision Authority

(1) State agencies and local governments are required to provide assistance to the Supervision Authority within the limits of their competence.

(2) The Supervision Authority has the right to examine evidence collected in criminal proceedings and misdemeanour proceedings which indicate a violation of the legislation specified in subsection 1 of § 2 of this Act.

§ 49. Cooperation of Supervision Authority with Eesti Pank , Ministry of Finance and other state agencies in field of legislative drafting

(2) The Supervision Authority has the right to submit proposals for the preparation, amendment or repeal of legislation, reviews concerning the activities of the financial sector, and reviews concerning the effect and application of legislation dealing with financial supervision to Eesti Pank, the Government of the Republic, the Ministry of Finance and other state authorities, and to publish such proposals and reviews.

(3) If a legal act to be drafted or amended by Eesti Pank, the Ministry of Finance or any other state agency regulates the activities of a subject of financial supervision or the Supervision Authority or has any other impact on the attainment of the objectives of financial supervision, the draft act shall be coordinated with the Supervision Authority.

§ 50. Cooperation agreements

(1) The Supervision Authority may enter into a bilateral or multilateral agreement for cooperation with Eesti Pank, the Ministry of Finance or any other state agency if such cooperation is necessary to promote attainment of the objectives of financial supervision.

(2) The Supervision Authority, the Ministry of Finance and Eesti Pank shall, on the basis of a written agreement, cooperate in the collection and analysis of reports, the drafting of legislation, and the planning and implementation of the resolution tools or powers and the exchange of information in case of events which have a substantial impact on the situation in the financial sector.

§ 50¹. Cooperation with subjects of financial supervision and other persons

Before issuing advisory guidelines, the Supervision Authority shall send the draft of such guidelines, and before approving legislation submitted to the Supervision Authority for approval pursuant to subsection 3 of § 49 of this Act, the Supervision Authority shall send the draft of such legislation to the relevant subjects of financial supervision, the issuers of securities accepted for trading on the regulated securities market and where possible, also to the organisations representing the interests of investors or the clients of the subjects of financial supervision for obtaining their opinion.

§ 50². Reporting of violations of law

(1) The Supervision Authority establishes internal rules with regard to violation or potential violation of an obligation provided in legislation regulating the activities of a subject of financial supervision for the receipt and processing of reports submitted to the Supervision Authority (hereinafter in this section report), taking into account the provisions of the Act on Protection of Persons Who Report Work-Related Breaches of European Union Law and the legislation enacted on the basis thereof. The provisions of the first sentence of this subsection do not apply to submission of information to the Supervision Authority in the cases prescribed by other legislation.

(2) The internal rules specified in subsection 1 of this section shall determine:

1) the employees responsible for the receipt of the reports, follow-up, and providing feedback and explanations;

2) the independent communication channels used for the receipt of the reports and providing feedback and explanations;

3) the procedure for the receipt and processing of the reports and for follow-up;

4) the procedure for providing feedback regarding the report, including the manner, content and timeframe of the feedback;

5) the manner in which the Supervision Authority may require the reporting person to provide explanations or additional information regarding the report;

6) the procedure for ensuring confidentiality of the reporting person and the violator in transmission of data in the Supervision Authority and to other persons, including the list of bases for disclosure of the confidential information provided for in a legal instrument, which is sufficient in order to understand when the disclosure of the confidential information is ne c essary and proportionate for performance of investigative activities, conducting judicial proceedings or protection of the rights and freedoms of other persons.

(3) The Supervision Authority shall provide the reporting person with the information provided in subsection 3¹ of § 53 of this Act prior to the receipt of the report, but no later than at the moment of the receipt of the report. The Supervision Authority is entitled to provide the information specified in clause 9 of subsection 3¹ of § 53 of this Act with a delay, i f the disclosure of such information may jeopardise the protection of the confidentiality of the fact of reporting.

(4) The Supervision Authority shall organise the targeted training of the personnel responsible for the receipt and processing of the reports.

(5) The Supervision Authority shall update the internal rules specified in subsection 1 of this section according to the supervision and market practice and the development of technology at least once every two years.

(6) The minister in charge of the policy sector shall establish by a regulation the requirements for the communication channels used for the receipt of the reports and providing feedback and explanations, for the receipt and preservation of the reports and ensuring data confidentiality.

§ 50³. Protection of reporting person and violator

(1) The confidentiality of the fact of the reporting specified in subsection 1 of § 50² of this Act shall be ensured. The fact of reporting a violation may be disclosed only with the written consent of the reporting person.

(2) The confidentiality of the fact of reporting a violation shall not be ensured, if the reporting person intentionally provides false information.

(3) If the reporting person is involved as a witness in the proceedings concerning the offence, the provisions of proceedings concerning the offence apply without violating the confidentiality of the fact of reporting a violation.

(4) A court or labour dispute committee shall apply the shared burden of proof for the protection of the reporting person and the violator. A plaintiff or petitioner shall state in his or her application the factual circumstances based on which it may be presumed that he or she has been subject to unequal treatment. Unless a person against whom the petition was filed does not prove otherwise, it is presumed that the unequal treatment of the reporting person or the violator was caused by reporting a violation. An agreement which derogates from the provisions of this subsection is void.

(5) Reporting a violation to the Supervision Authority in good faith and not notifying thereof the persons associated with the violation shall not be considered vi olation of the confidentiality or other requirement or obligation provided for by a legal instrument or contract, and a person who reported to the Supervision Authority in good faith shall not be subject to the liability prescribed by a legal instrument or contract. Any agreement which derogates from the provisions of the first sentence of this subsection is void.

(6) If necessary, the Supervision Authority shall provide explanations regarding the procedure for the receipt and processing of the reports and the information disclosed pursuant to the procedure provided for in subsection 3¹ of § 53 of this Act and issue, at the request of the reporting person or the violator, a confirmation regarding the involvement of the reporting person or the violator in super vision proceedings.

§ 51. Annual report

(1) The annual report of the Supervision Authority consists of the management report, the statement of revenue and expenditure, and the sworn auditor’s report.

(2) The supervisory board shall approve the annual report of the Supervision Authority within three months as of the end of the budgetary year.

(3) The statement of revenue and expenditure of the Supervision Authority shall be audited by an auditor of Eesti Pank.

(4) The annual report of the Supervision Authority approved by the supervisory board shall be submitted to the Riigikogu together with the annual report of Eesti Pank. The Riigikogu shall hear the report of the chairman of the management board concerning the annual report of the Supervision Authority pursuant to the procedure prescribed by the Riigikogu Internal Rules Act and the Riigikogu Rules of Procedure Act.

§ 52. Yearbook of Supervision Authority

(1) Every year, the Supervision Authority shall publish a yearbook of the Supervision Authority.

(2) The yearbook of the Supervision Authority shall contain the annual report of the Supervision Authority approved by the supervisory board, a list of the advisory guidelines issued by the Supervision Authority and the relevant explanations, and a summary report of the activities of the subjects of financial supervision during the previous calendar year.

§ 53. Disclosure of activities of Supervision Authority

(1) The Supervision Authority publishes the resolutions of the supervisory board on its website. Resolutions containing information specified in clauses 7 and 8 of subsection 2 of § 7 and subsection 2 of § 54 of this Act, with the exception of information concerning circumstances relating to the termination of the contract of service with the chairman of the management board, are not public information, considering the restriction provided in the second sentence of subsection 4 of § 22.

(2) Resolutions of the management board are not public information and they shall be disclosed only in the cases and pursuant to the procedure provided in the Acts specified in § 2 of this Act.

(3) The Supervision Authority shall publish on its webpage:

1) the advisory guidelines issued on the basis of § 57 of this Act;

1¹) the general orders issued on the basis of subsection 1 of § 55 of this Act;

1²) the supervisory objectives, main functions and principles of activities of the Supervision Authority;

2) provision by Estonian legislation for the choices which, according to the legislation of the European Union, are to be decided by the Member States on the national level;

3) the general criteria and methods used by the Supervision Authority in the supervisory review and evaluation process and in the supervision of insurance activities, including the measures for conducting a stress test and sensitivity analysis of an insurance undertaking;

3¹) those parts of the internal rules which ensure the prevention of a conflict of interests, independent performance of different functions, maintenance of professional secrecy and following the rules for information exchange between different functional areas;

4) the information regarding the general requirements which a Contracting State insurance undertaking and insurance intermediary must follow for engaging in insurance activities and insurance distribution in Estonia;

5) the website link to the register specified in Article 3(4) of Directive (EU) 2016/97 of the European Parliament and of the Council;

6) the aggregate statistical data pursuant to Article 316 of Commission Delegated Regulation (EU) No. 2015/35, Regulation (EU) 2019/2033 of the European Parliament and of the Council, the Securities Market Act, including the requirement for additional own funds provided pursuant to clause 9 of § 235 of the Securities Market Act, and the number and type of sanctions imposed pursuant to the provisions of Chapter 25 of the Securities Market Act, and the aggregate statistical data pertaining to the prudential requirements for credit institutions;

7) other information, the publication whereof on the website of the Supervision Authority is provided for in the Acts specified in subsection 1 of § 2 of this Act.

(3¹) The Supervision Authority shall publish on its website in an easily discoverable separate section at least the following information regarding the receipt of the reports specified in subsection 1 of § 50² of this Act:

1) the information specified in subsection 2 of § 50² of this Act;

2) an explanation that the report may be submitted in writing and in a format which can be reproduced in writing, by phone or through other voice messaging systems and during a meeting with a designated employee of the Supervision Authority;

3) a confirmation that the reporting person has the right to remain anonymous;

4) a reference to a phone with information recording function if this has been determined;

5) a reference to the confidentiality preservation measures provided for in subsections 1–3 of § 50³ of this Act;

6) a reference to the protection provided for in subsection 4 of § 50³ of this Act in connection with the repression, discrimination or other unfair treatment taking place as a result of reporting a violation;

7) references to cooperation between the Supervision Authority and other persons in cases specified in clause 6 of this subsection;

8) a reference to the provisions of subsections 5 and 6 of § 50³ of this Act;

9) the statistics of the receipt and processing of the reports in non-personalised format;

10) a reference to the protection measures provided in the Act on Protection of Persons Who Report Work-Related Breaches of European Union Law and the legislation enacted on the basis thereof.

(3²) The Supervision Authority publishes on its webpage the links through which the legislation specified in subsection 1 of § 2 of this Act are available in the Riigi Teataja.

(4) For the purpose of transparency in the financial sector, the Supervision Authority publishes on its website, pursuant to the procedure and to the extent established by the minister in charge of the policy sector, information on:

1) Estonian subjects of financial supervision, their subsidiaries, branches and representations located in foreign countries, and the provision of cross-border services by them;

2) the Estonian branches and representations of foreign persons or institutions holding the right to operate in Estonia based on the Acts specified in subsection 1 of § 2 of this Act, and concerning the provision of cross-border services by them in Estonia;

2¹) a resolution on commencement of resolution proceedings and information regarding a resolution tool or power;

4) covered bonds issued in Estonia and the issuers thereof in accordance with the provisions of the Covered Bonds Act.

(4¹) While publishing information as provided in subsection 4 of this section, the following general data may be published regarding a natural person who is a subject of supervision and a professional investor:

1) given name and surname;

2) personal identification code or, if none, the date of birth;

3) address, telephone number and e-mail address.

(5) On its website, the Supervision Authority publishes data on the gender balance of the management bodies of Estonian issuers of shares in accordance with the provisions of the Securities Market Act.

(6) The information specified in clauses 1, 1¹, 2, 3, and 6 of subsection 3 of this section is published in a uniform format and updated regularly. The information must be sufficiently comprehensive and accurate to allow for a substantive comparison of the information specified clauses 2, 3, and 6 of subsection 3 of this section as published by the financial supervision authorities of the various Contracting States.

§ 54¹. Classification of resolution proceedings

The resolution proceedings carried out by the Supervision Authority shall not be public and the provisions of the Financial Crisis Prevention and Resolution Act shall apply thereto.

§ 54². Processing of personal data in supervision proceedings

(1) The Supervision Authority is entitled to process personal data, including personal data of special categories to the extent deriving from the Acts specified in subsection 1 of § 2 of this Act and from legislation issued pursuant to these Acts for the purpose of financial supervision or financial crisis prevention and resolution. The Supervision Authority is entitled, in relevant cases, to process personal data across borders, and to transfer data to international organisations in cases prescribed by legislation.

(2) In the case specified in subsection 1 of this section, the provisions of point (f) of Article 13 (1), point (a) of Article 13 (2), Article 13 (3) and Articles 15–19 and 21 of Regulation (EU) 2016/679 of the European Parliament and of the Council on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation) (OJ L 119, 04.05.2016, p. 1–88) do not apply.

(3) The personal data processed in supervision proceedings specified in subsection 1 of this section are retained for the term provided by an Act or legislation issued pursuant to an Act or for as long it is necessary for achievement of the purposes thereof.

(4) The personal data processed in the supervisory procedures provided in Regulation (EU) 2022/2554 of the European Parliament and of the Council are retained in accordance with Article 56 of said Regulation.

§ 54³. Publication of investor alerts

(1) The Supervision Authority may alert the public in case financial services are provided without an activity licence or in case of other activities which are not in compliance with the legislation specified in subsection 1 of § 2 of this Act or a suspicion thereof (hereinafter investor alert).

(2) Before publication of an investor alert, the Supervision Authority may make an inquiry regarding the circumstances important for issuing the investor alert to a person who is an offender or who can be regarded as an offender based on the information known to the Supervision Authority, or to any other person.

(3) An investor alert shall be published on the website of the Supervision Authority and it shall contain at least the evaluation of the Supervision Authority regarding the activities of the person, and the data of the persons involved in the activities, if any. The Supervision Authority may publish the investor alert also through other channels.

(4) If the circumstances set out in the investor alert will later turn out to be unfounded or if the circumstances underlying the investor alert have ceased to exist, the Supervision Authority shall publish a respective notice in the same format.

(5) An investor alert may remain publicly available for up to five years. If it is justified, this term may be extended.

(6) For compelling reasons, the personal data of natural persons involved in the activity may remain undisclosed in an investor alert if such publication would be unproportionate with regard to the persons involved or would be unnecessary on other grounds, considering the circumstances.

(7) The Supervision Authority may publish also warnings of the institutions specified in subsection 2 of § 46 of this Act, financial supervisory authorities of foreign states or international organisations.

§ 55. Decisions and precepts of management board, and orders of management board and members of management board

(1) The management board shall adopt resolutions and issue precepts, and shall issue orders and general orders in the name of the Supervision Authority.

(1¹) Under the common decision-making procedure, the management board shall make common decisions with the financial supervision authorities of Contracting States in the cases provided by law.

(2) Members of the management board shall issue orders on behalf of the Supervision Authority in the matters specified in subsection 1 of § 22¹ of this Act.

(3) An appeal may be filed with an administrative court against a resolution or precept of the management board, an order of the management board or a member of the management board, or a financial supervision operation on the bases and pursuant to the procedure prescribed by law.

(4) As an exception, an administrative act of the Supervision Authority may be in force as of the notification or delivery of only the resolution thereof to the addressee, if prompt action is required for prevention of damage arising from delay or for the protection of the interests of clients or investors in preserving their funds and the objective of issuing the administrative act is to:

1) prohibit transactions, operations or payments from profit or restrict these, in full or in part, including to establish a prohibition on the use or disposal of assets or a restriction to ensure the preservation of assets;

2) suspend or cease executing transactions in securities on a trading venue;

3) establish special regime, moratorium or specific monitoring or decide on filing of bankruptcy petition;

4) revoke the authorisation of the subject of financial supervision due to inability to perform its obligations to clients or other creditors, or to demand the removal of the manager of the subject of financial supervision;

5) request information from a subject of financial supervision or other person to verify the performance of prudential requirements, financial standing or continuity of economic activities of the subject of financial supervision, and to verify market abuse or acquisition or transfer of holding in issuer of securities or other subject of financial supervision or circumstances of dominant influence.

(5) An administrative act of the Supervision Authority subject to publication in a daily national newspaper shall be in force as of the publication of the resolution of the act in a daily national newspaper, unless this administrative act has not previously entered into force in respect of the addressee.

(6) In the cases specified in subsection 4 of this section, the addressee is notified, together with the notification or delivery of the resolution of the administrative act, about the time of notification of the administrative act as a whole, which shall not be longer than three working days as of the entry into force of the resolution of the administrative act. The term for contesting an administrative act of the Supervision Authority commences to run as of the notification or delivery to the addressee of the administrative act as a whole.

(7) If the Supervision Authority issues a precept for the removal of a person under an Act specified in subsection 1 of § 2 of this Act, the rights and obligations of the person deriving from his or her capacity in the management body of the subject of financial supervision shall be suspended as of the notification or delivery of the precept.

§ 55¹. Guidance of the management board

(1) The management board shall issue guidance of an advisory nature on behalf of the Supervision Authority if it is provided for in an Act specified in subsection 2 of § 2 of this Act or in the legislation of the European Union.

(2) The management board shall approve the guidance by its resolution, and the guidance shall be delivered electronically or by post. If the guidance is not observed, the Supervision Authority shall be informed within ten working days after the delivery of the guidance, and relevant reasons shall be submitted.

§ 56. Directives of chairman of management board

The chairman of the management board shall issue directives to regulate matters relating to the internal organisation of the activities and the management of the Supervision Authority.

§ 57. Guidelines of Supervision Authority

(1) The Supervision Authority has the right to issue advisory guidelines to explain legislation regulating the activities of the financial sector and to provide guidance to subjects of financial supervision.

(2) The Supervision Authority has the right to involve experts and representatives of the subjects of financial supervision in the drafting of advisory guidelines.

(3) The advisory guidelines of the Supervision Authority shall be approved by a resolution of the management board and the guidelines shall be disclosed as provided for in subsection 3 of § 53 of this Act.

§ 59. Commencement of activities of Supervision Authority

The Supervision Authority shall commence activities on 1 January 2002.

§ 60. Appointment of members of supervisory board and management board

(1) The Government of the Republic and the Supervisory Board of Eesti Pank shall appoint the members of the supervisory board within one month after the entry into force of this Act.

(2) The Minister of Finance shall call the first meeting of the supervisory board within twenty days after all members of the supervisory board have been appointed.

(3) The agenda of the first meeting of the supervisory board shall include at least the election of the chairman of the management board from among the persons specified in subsection 1 of § 61 of this Act.

(4) The supervisory board shall appoint the members of the management board pursuant to the procedure provided by this Act not later than by 30 June 2002.

§ 61. Commencement of activities of Supervision Authority

(1) The Director General of the Securities Inspectorate, the Director General of the Insurance Supervision Authority and the Head of the Banking Supervision of Eesti Pank, or the persons performing their duties, shall perform the duties of a member of the management board provided by this Act if, by 10 June 2001, they have granted corresponding written consent to the person or body who appointed them. If one of the aforementioned persons refuses to consent, he or she shall be released from service on the basis of § 116 of the Public Service Act or the employment contract with him or her shall be terminated on the basis of clause 3 of § 86 of the Republic of Estonia Employment Contracts Act.

(2) The term of the authority of the persons specified in subsection 1 of this section commences on the day following the date of the first meeting of the supervisory board and ends upon commencement of the term of the authority of the members of the management board pursuant to the procedure provided for in subsection 3 of § 21 of this Act.

(3) Until the term of the authority of the members of the management board provided for in subsection 4 of § 60 of this Act commences, the management board shall consist of three members.

(4) The management board consisting of the persons specified in subsection 1 of this section (hereinafter the management board) has a quorum if all members of the management board are present. A resolution of the management board is adopted if at least two members of the management board vote in favour.

(5) The management board shall, pursuant to the procedure established by the supervisory board, report to the supervisory board on the implementation of the action plan for commencement of the activities of the Supervision Authority.

§ 62. Continuation or termination of service or employment relationships

(1) Officials of the Securities Inspectorate and the Insurance Supervision Authority and employees of the Banking Supervision of Eesti Pank who meet the requirements for employees provided by this Act and who submit a corresponding application to the management board by 1 November 2001 shall be employed by the Supervision Authority as of 1 January 2002. In such case, the service relationship of the official of the Securities Inspectorate or the Insurance Supervision Authority shall be deemed to terminate as of 31 December 2001 on the basis of § 114 of the Public Service Act.

(2) Officials of the Securities Inspectorate and the Insurance Supervision Authority and employees of the Banking Supervision of Eesti Pank who do not meet the requirements for employees provided by this Act or who do not submit the application specified in subsection 1 of this section shall be released from service on the basis of § 116 of the Public Service Act or the employment contracts with such persons shall be terminated on the basis of clause 3 of § 86 of the Republic of Estonia Employment Contracts Act.

(3) The length of service of a person at the Financial Supervision Authority shall be calculated as of the commencement of his or her employment or service at Eesti Pank, the Insurance Supervision Authority or the Securities Inspectorate.

§ 63. Transfer of assets and performance of proprietary obligations

(1) State assets in the possession and at the disposal of the Securities Inspectorate or the Insurance Supervision Authority which are necessary for the activities of the Supervision Authority shall be transferred by the administrator of state assets to the Supervision Authority free of charge not later than by 1 January 2002.

(2) The state shall be liable with the budgetary funds thereof for proprietary obligations which arise out of the activities of the Securities Inspectorate or the Insurance Supervision Authority before 1 January 2002, and Eesti Pank shall be liable with the budgetary funds thereof for proprietary obligations which arise out of the activities of the Banking Supervision of Eesti Pank before 1 January 2002.

§ 64. Application of Act

(1) Administrative matters and administrative offence matters which are subject to processing by the Securities Inspectorate, the Insurance Supervision Authority or the Banking Supervision of Eesti Pank on 1 January 2002 and petitions which have been submitted but not accepted by that date shall be transferred to the Supervision Authority who shall conclude the proceedings pursuant to this Act and the Acts specified in subsection 1 of § 2 of this Act.

(2) In matters arising from the conduct of supervision over securities markets or insurance activities, which are subject to court proceeding as at 1 January 2002 and in which the state is represented by the Securities Inspectorate or the Insurance Supervision Authority on the basis of law or general or special authorisation or in which one of the participants in the proceedings is Eesti Pank in a dispute concerning the exercise of banking supervision, the state shall be thereafter represented by the Supervision Authority or the Supervision Authority shall substitute for Eesti Pank as a participant in the proceedings.

(3) Activity licences and authorisations, other permits and administrative legislation of specific application issued by competent bodies on the basis of an Act specified in § 2 of this Act before the commencement of the activities of the Supervision Authority shall be valid until the expiry thereof or until their revocation.

(4) In 2002 and 2003, the expenses of the Supervision Authority may be partially covered from the funds prescribed in the budget of Eesti Pank or from the appropriations prescribed in the state budget.

(5) If the expenses of the Supervision Authority are partially covered on the basis of subsection 4 of this section, rates of the supervision fee lower than the rates provided for in § 37 of this Act may be applied.

(6) In the case of management of the assets of mandatory pension funds, the rate of 0.02–0.1 per cent shall be applied to the share of the supervision fee calculated on the basis of assets until the end of the budgetary year 2005.

(6¹) If the common decision-making procedure specified in § 47³ of this Act has been commenced before 31 December 2012, the period of time provided for in subsection 4 of § 47³ of this Act amounts to six months.

(6²) The rates of share of calculated on basis of assets provided for in clause 12 of subsection 2 of § 39 of this Act shall apply to payment institutions with regard to the budgetary year 2018 and the following budgetary years.

(7¹) The term limit requirement specified in the second sentence of subsection 5 of § 21 of this Act applies to contracts of service entered into with members of the management board on or after 11 January 2026.

(7²) The members of the management board and supervisory board of the Supervision Authority must bring their activities into compliance with the requirements provided in §§ 32 and 32¹ of the wording of this Act adopted on 17 June 2026, by 1 October 2026.

(8) The obligation of a creditor and credit intermediary to make the advance payment and final payment based on the rate of the share of the supervision fee calculated on the basis of assets shall apply as of the budgetary year 2017.

(9) The rates of the share of the supervision fee calculated on the basis of assets established in respect to management companies by the version of this Act passed on 14 December 2016 shall apply with regard to the budgetary year 2018.

(10) The obligation of a credit information registrar to make the advance payment and final payment based on the rate of the share of the supervision fee calculated on the basis of assets applies as of the budgetary year 2029.

§ 65. Information relating to supervision activities

(1) Information relating to the supervision activities of the Securities Inspectorate, the Insurance Supervision Authority or the Banking Supervision of Eesti Pank which is recorded or documented in any manner on any data media shall be transferred to the Supervision Authority.

(2) Confidential information obtained in the course of the supervision activities of the Securities Inspectorate, the Insurance Supervision Authority or the Banking Supervision may be disclosed by a member of the management board, or an employee of the Supervision Authority, to other members of the management board, or employees of the Supervision Authority, if this is necessary for the performance of their duties.

§ 65¹. Information to be submitted to European Insurance and Occupational Pensions Authority

The Supervision Authority shall submit until 2021 to the European Insurance and Occupational Pensions Authority once a year the following information concerning the Estonian insurance market:

1) existence of long-term guarantees in insurance contracts and behaviour of insurance undertakings in long-term investments;

2) the number of the insurance undertakings that implement the matching adjustment provided for in § 46, the volatility adjustment provided for in § 47, and the transitional adjustment and the transitional deduction provided for in § 267 of the Insurance Activities Act;

3) the number of the insurance undertakings subject to the extension of the recovery period provided for in § 94 of the Insurance Activities Act;

4) the effect of the matching adjustment provided for in § 46, the volatility adjustment provided for in § 47, the symmetric adjustment provided for in subsection 4 of § 67 and the transitional measures provided for in § 267 of the Insurance Activities Act on the financial condition of the insurance undertakings with regard to all the insurance undertakings as a whole and with regard to each insurance undertaking separately without specifying the name of an insurance undertaking;

5) the consequences of the implementation of the matching adjustment provided for in § 46, the volatility adjustment provided for in § 47 and the symmetric adjustment provided for in subsection 4 of § 67 of the Insurance Activities Act for the investment behaviour of an insurance undertaking and an assessment whether this involves an excessive liberation of capital;

6) the effect of the extension of the recovery period provided for in § 94 of the Insurance Activities Act on the ability of the insurance undertaking to restore the level of the eligible own funds to cover the Solvency Capital Requirement or change its risk profile;

7) the assessment of the ability of the insurance undertakings subject to § 268 of the Insurance Activities Act to implement a plan for the employment of the own funds and reduction of the risk profile and the assessment of the prospects to reduce the necessity of using the transitional measures, including the description of the measures which the insurance undertaking or the Supervision Authority has implemented or intends to implement.

§ 66. Entry into force of Act

(1) This Act enters into force on 1 June 2001.

(2) Clauses 4–7 of subsection 2 of § 7, subsection 5 of § 14, subsection 2 of § 18, clauses 3, 4, 8, 10 and 13–15 of subsection 3 of § 18, §§ 20–22, 29, 51 and 52, subsection 3 of § 53 and §§ 54, 55, 57 and 58 of this Act enter into force on 1 January 2002.

(3) Subsection 4 of § 53 of this Act enters into force on 1 July 2002.

Extract from the Law Enforcement Act Amendment and Implementation Act (RT I, 13.03.2014, 4) with regard to the implementation of the Financial Supervision Authority Act: