Regulators

Estonian Financial Supervisory Authority (FSA)

The Estonian Financial Supervisory Authority FSA is an independent financial supervisory authority established in 2002.

Forex Regulatory Tips

According to the information on the FSA official website, the Estonian Financial Supervisory Authority ("FSA") regulates leveraged foreign exchange transactions. But the Estonian Supervisory Authority has not authorized any investment company to do business in China.
Estonia's definition of leveraged foreign exchange trading: Instant foreign exchange trading contracts can be renewed indefinitely without actual delivery or handover of currency usually taking place like currency exchange. The fluctuations in the exchange rates of the base currencies of the two sides were thus exposed. Real-time foreign exchange contracts are considered derivative contracts. Gains or losses on such contracts are assessed by changes in the market price of the currency pair. The value of real-time foreign exchange contracts is calculated by the exchange rate of the currency, and currency pairs and currency baskets are also considered.

Organization Profile

Type of organization: government agency
Agency introduction: The Estonian Financial Supervisory Authority is a financial supervisory authority with autonomous authority and an independent budget, supervising in the name of the state and independent of its activities and decision-making.
The Financial Supervisory Authority conducts state supervision of banks, insurance companies, insurance intermediaries, investment companies, management companies, investment and pension funds, as well as authorized payment service providers, electronic money institutions, microfinance institutions and securities markets. Furthermore, they supervise the branches of banks, insurance companies and investment companies opened in the Estonia region by banks, insurance companies or investment companies. The Estonian Financial Supervisory Authority aims to help improve the stability and quality of services provided by companies providing financial services, thereby increasing the reliability of the Estonian monetary system.
A structural change took place in June 2005, and the FSA organized its work by overseeing capital and overseeing services. The solvency and sustainability of market participants are key aspects of their capital regulation, while supervisory services aim to ensure the transparency, reliability and efficiency of financial services. The FSA Management Board is currently led by Kilvar Kessler (Chairman), Andres Kurgpõld and Andre Nõmm.
Regulatory Objectives
(1) To ensure that financial services companies provide stable and high-quality services to promote the reliability of the Estonian monetary system;
(2) The main purpose of regulation is to ensure that financial institutions can meet the future needs of customers, including payment of deposits, insurance losses or pensions, etc. In addition, FSA is also committed to improving the efficiency of Estonia's financial sector, avoiding systemic risks, and preventing the occurrence of criminal crimes in the financial sector;
(3) The agency's work also involves explaining to clients the types of risks and assisting them in choosing appropriate financial services.

Licence application

1. Application Fee
1000 euros
2. Application process
The founder of an investment company or the management committee of a registered public limited liability company applying for an activity license shall submit the following documents and materials to the financial supervision and management agency:
(1) After the establishment of the company, a notarized copy of the basic agreement or resolution
(2) A copy of the articles of association of the company and in the case of operating a company, the decision of the general meeting of shareholders to amend the articles of association together with the revised text of the articles of association of the company
(3) List of shareholders, which shall list the name and personal identification number or registration number and date of birth of each shareholder or member, and the number of shares held by each shareholder and the number of votes should also be marked
(4) Information about the shareholders of the applicant who have qualified shareholdings
(5) Information on the members of the applicant's management committee and supervisory board, as well as members of the administrative management
(6) Information on the company in which the applicant or its managers hold more than 20% of the company, which shall also include the amount of share capital, a list of areas of activity and the percentage of participation of the above-mentioned persons
(7) Information about the applicant's auditors and those who conduct internal control
(8) Applicant's initial balance sheet and income and expense profile, or, for operating companies, balance sheet and profit and loss statement at the end of the month preceding the month in which the application was filed, and the three most recent annual reports, if any

(9) For operating companies, provide documents proving the scale of self-owned funds and audit reports;
(10) If the qualifying holding is owned by a foreign credit institution, management company, investment fund, investment company, insurance company or any other person subject to financial regulation, a certificate from the appropriate national regulatory authority showing that foreign securities firm Possess a valid permit for activities and, finally, determine that their activities do not violate the existing legislation of the authorities
(11) The applicant's three-year business plan, including at least a description of the proposed activities, the applicant's organizational structure, business premises, applicable information systems and other technical equipment and economic indicators
(12) Accounting policies or procedures or drafts thereof
(13) To monitor compliance with the Code of Conduct and Internal Auditing Rules under the Money Laundering and Terrorist Financing Prevention Act
(14) The applicant undertakes the obligation to pay a single donation under the Guarantee Fund Law.
3. Application Duration
2-6 months

Regulatory Rules

1. Regulatory framework: Estonian Securities Market Regulation and EU MIFiD II Regulation
2. Segregation of funds: Estonia requires investment companies to separate client funds from their own funds and keep client funds in trust. Forex dealers fall under the category of investment companies.
3. Leverage limit: Estonia is a member of the EU and follows the EU leverage limit of 30:1.

Regulatory Inquiries

Step 1: Log in to the website: http://www.fi.ee/, click "English" in the upper left corner to select English mode.

Step 2: Enter the company name in the search box in the upper right corner of the interface and click Search. Let's take "AS Inbank" as an example, click it after entering it, and the display will be as follows.

Step 3: Click "AS Inbank" to get detailed information.

Step 4: In addition, if you want to obtain tabulated information on regulated companies, you can do so as follows. After entering the website page and selecting the English mode, click "Supervised Entities", and then you can view each type of supervised institution.

Regulatory complaints

Dispute Resolution
1. Claim Processing Time and Limit
17 days; EUR 100,000
2. Contact Information
Tel: 372 6680 580
Email: [email protected]

FAQs

For details, please click this link: http://www.fi.ee/index.php?id=12252

Contact information

Phone: 372 668 0500
Fax: 372 668 0501
Email: [email protected]
Address: Postal Sakala 4, 15030 Tallinn Estonia

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