Finantsinspektsioon operating strategy 2026–2029

This strategy sets the main priorities for the activities of Finantsinspektsioon in 2026–2029, reflecting the new expectations of financial supervision. The priorities set for the previous strategy horizon of 2022–2025 were improving the digital skills of the organisation, automating supervision, and positioning Finantsinspektsioon within the single European supervision and resolution structures. We have moved forward towards those targets, and we will continue to work on them during the new strategy horizon as well. In the changing environment, we continue to concentrate on the capacity for resilience of significant financial institutions and on protecting the interests of consumers of financial services and investors.

The new strategy will build on what Finantsinspektsioon has already achieved so far, but will redirect the emphasis because of three changes in circumstances in particular.

Main strategic focus areas of Finantsinspektsioon for 2026–2029

A. We are an open and decisive supervisor

Our supervisory activities are open and predictable and our expectations of market participants are clear

• We are independent in our decision-making. We explain requirements and regulations to market participants in a way that is certain and supportive.
• Our supervisory practices are transparent and guide market participants and promote clarity. We set priorities to achieve this, publish targeted regular supervisory expectations, and give constant feedback.
• We develop our administrative procedures and processes so we can provide them as a clear, effective and predictable public service. This reduces the time spent on such procedures.
• We focus public attention on the biggest challenges in the financial sector. We are actively involved in shaping those areas of focus in Estonia that affect the structure and competitiveness of the national financial sector and we present those topics internationally.

Finantsinspektsioon carries out risk-based and proportional supervision that does not become too complex

• Proportional risk-based assessments and the culture that goes with them are a part of decision making and must consider whether and how decisions can be implemented.
• Dialogue is what matters. We involve stakeholders from the financial market in shaping regulations and supervisory choices so that we can find a balance and reach reasonable solutions.
• We are looking now and will continue to look for ways of simplifying the existing regulations and supervisory practices

B. We believe in a financial sector that is resilient and can stand up to crises

Supervision focuses on the areas of highest risk and significant entities, and the financial and organisational resilience of market participants is at a high level

• We assess financial strength with ever more thorough riskbased methodologies and we develop models to identify and handle risks and possible breaches of the rules at early stages by using early warning indicators and data-based analysis.

• Our inspections focus on entities that are systemically important and have the highest risks. We run regular analysis and stress tests of the most material financial risks, some in cooperation with the European Central Bank.

• We focus on the governance and risk management systems of supervised entities and on how appropriate their working culture is.

• We strengthen the cyber and operational resilience of the financial sector and promote the effective management of cyber risks. We focus on the risks arising from outsourcing critical IT services. We conduct supervisory activities, penetration tests and exercises.

• We assess risk profiles as a basis for the additional capital requirements to make sure that supervised entities are sufficiently capitalized.

Finantsinspektsioon and the financial sector are crisis-ready

• In cooperation with the Single Resolution Board (SRB), we simplify resolution plans and ensure their practical implementability in order to strengthen the resilience of credit institutions to financial crises and to safeguard financial stability and depositor confidence.

• We organise crisis exercises and simulations and we test the framework of cooperation for resolving financial crises by working with partner institutions in Europe, the Nordic and Baltic states, and Estonia.

• We establish and implement a financial crisis resolution framework and function for the insurance sector.

• Together with Eesti Pank, we strengthen the capacity to carry out effective supervision of institutions providing vital payment and cash services, with the aim of ensuring the continuity of these services under various crisis scenarios, including possible national security crises. We actively participate in relevant national and regional crisis exercises and test our own crisis management frameworks and capabilities.

• We keep our crisis management plans up to date and strengthen internal crisis awareness to ensure fast and uninterrupted decision making under any crisis scenario.

C. We safeguard fair financial services and the market 

Care and expertise must be demonstrated when financial services are provided. Financial services and products are sold fairly with consideration of the circumstances of the customer

• Our inspections focus on making sure that the service provider considers whether the content of their products and services is appropriate for the circumstances, interests and needs of the customer. Clients and investors must be given accurate and balanced information, which means that services may not have hidden or unknown features that could unexpectedly put the client in a difficult position.

• We guide the supervised entities so that the involvement of third parties in providing services through outsourcing does not harm the quality of the service.

• We stand for responsible lending to consumers.

• We are engaged in preparation of the operational processes of financial services and products and the risks of the financial market.

The financial sector may not be abused for criminal goals

• We are engaged in preparing the work processes of the Anti-Money Laundering Authority (AMLA). We will bring our supervisory practices and organisational capacity into line with the expectations of AMLA.

• We strive to prevent the financial sector from being abused for money-laundering, breaches of financial sanctions, or other criminal goals. We inspect whether the systems that counter money-laundering and terrorist financing and ensure compliance with financial sanctions, including new technology-based business models, function efficiently and in a risk-based manner.

• We explain our expectations to market participants about management of risks relating to financial fraud and we supervise those expectations.

• We work with our partner institutions to stop criminal activity more effectively.

D. We support the risk-aware use of technology

Finantsinspektsioon supports innovation and the risk-aware use of new technology

• We work to provide supportive supervision in Estonia for those who want to establish innovative and risk-aware financial institutions.

• We support responsible innovation, explaining our supervisory expectations for new business models, technologies and solutions and allowing early adoption.

Our technological capacity is at a high level

• We develop automated and data-based supervision. We assess the best technological solutions from our European cooperation partners and we apply them.

• We design digital services aimed at market participants to make communication and data exchange with Finantsinspektsioon as simple as possible.

• We develop the supervisory skills needed for understanding and assessing new technologies, including artificial intelligence, so that we can support the reasonable adoption of the opportunities they bring.

The digital skills of Finantsinspektsioon are strong

• We strengthen our own operational resilience to cope with cyber incidents.

• We improve our supervisory capacity to assess digital and technological risks.

E. We are an open organisation and we represent Estonia

Our organisational culture is open and inclusive and supports development

• We are developing a management culture that supports trust and responsibility at all levels of the organisation.

• We have a culture of open and honest communication where information moves transparently, the working environment is inclusive, alternative viewpoints are valued and listened to, and staff are able to take part in decision-making processes.

• We believe in constant development for our employees and offer them opportunities for self-development. We are strengthening our internal cooperation to achieve this.

Estonia is actively represented within the European Union financial supervisory framework

• We contribute to the supervisory convergence in the European Union and promote well-functioning financial sector and markets in Europe and Estonia.

• We take an active part in the work of the joint supervisory and resolution teams of the European Union.

• We make sure that the EU-wide supervisory frameworks and methodologies are applied smoothly, proportionally and in good time in Estonia.

• We strengthen the regional cooperation with partner supervisory institutions that takes account of the structure of the Estonian financial sector to ensure efficient supervision, financial stability and resilience of the financial sector.