National regulation of emergency preparedness
is unsuited for the European single market
The uninterrupted provision of financial services is critical for the functioning of the economy, industries and business, and citizens. We must ensure the least possible disruptions in emergency conditions.
In a society that is extensively networked, digitally advanced and interdependent, it is not possible to ensure preparedness with national regulation alone.
Emergency preparedness requires closer cross-sectoral cooperation on the national, Nordic and EU levels.
The financial sector must not be subject to excessive or tighter requirements than the other vital sectors. Extraordinary costs to financial sector entities must be reimbursed and new business solutions should be allowed sufficient transitional periods.
The Ministry of Finance set up a working group in 2017 to prepare a review of the regulations on the preparedness obligation applicable in the financial sector. The working group was established in response to the need to better align the regulations with the requirements and vulnerabilities of the current operating environment. The aim of the project was to tighten the national preparedness obligations.
Recent and ongoing projects:
- The Ministry of Finance legislative project for stricter national preparedness obligations for the financial sector.
- Under FFI’s lead, the financial sector completed an assessment of the continuity of critical financial services in emergency situations in late 2020. The report presented recommendations for enabling the continuity of credit transfers, card payments and securities trade under emergency situations and similar disruptions.
- The Commission’s proposal for a regulation on the digital operational resilience for the financial sector
The Finnish financial sector considers it important and in line with the principle of sincere cooperation that relevant regulatory needs are addressed during the legislative project on the financial sector’s digital and operational resilience.
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