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Only the Estonian version is official FINANCIAL SUPERVISION AUTHORITY ACT[Passed 9 May 2001 with an Act (RT [1] I 2001, 48, 267), entered into force 1 June 2001.
Chapter 1 § 1. Scope of application of Act This Act determines the objective of state financial supervision and the legal status, the bases for the activities and the bases and procedure for the financing of the Financial Supervision Authority. § 2. State financial supervision (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 Insurance Activities Act, the Investment Funds Act, the Funded Pensions Act, the Securities Market Act, the
Motor Third Party Liability Insurance Act, the Paying Institutions and E-money Institutions Act, the Estonian Central Register of Securities
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. Objective of financial supervision 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. § 4. Financial Supervision Authority (1) The Financial Supervision Authority (hereinafter the Supervision Authority) is an agency with autonomous competence and a separate budget, which operates at the Bank of Estonia 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 in the name of the state. (3) The Supervision Authority is independent in the conduct of financial supervision. § 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 of the Supervision Authority and the methodology applied shall take account of the size of the
subject of financial supervision, the effect of its activity to the financial system as well as the type, extent and complexity of the
activity, based on the principle of proportionality. (3) Upon performing its supervision activities, the Supervision Authority shall take into account the possible effect of its
decisions on the stability of the financial system of the other contracting state, primarily in relation with systemic risks, considering the
entire known information as of the moment of making the decision. § 6. Functions and rights of Supervision Authority (1) The
functions of the Supervision Authority in fulfilling the objectives of
financial supervision are to: (2) In the performance of its functions, the Supervision Authority has all the rights provided for in this Act, the Acts specified in subsection 2 (1) of this Act and legislation established on the basis thereof. (3) In the
procedure of financial supervision, the Financial Supervision Authority shall
apply the provisions of the Administrative Procedure Act, taking account of the
specifications arising from this Act, and the Acts specified in subsection 2
(1) of this Act and clause (1) 7) of this section.
Chapter 2 Division 1 § 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: § 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 of Finance and the President of the Bank of Estonia 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 of Finance and one-half by the Board of the Bank of Estonia on the proposal of the President of the Bank of Estonia. § 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: (3) The provisions of subsections 32 (1) and (2) 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 8 (2) 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: (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 of Finance 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: (5) Members of the supervisory board shall receive monthly remuneration in the amount of twice the minimum monthly wage. The Minister of Financial Affairs 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 has 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 clause 7 (2) 10) 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 shall give 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 or cohabitee, or a parent, child,
brother or sister of his or her spouse or cohabitee is: (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 meetings 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 resolutions 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 Digital Signatures Act (RT I 2000, 26, 150; 92, 597; 2001, 56, 338; 2002, 53, 336; 61, 375). (2) The supervisory board does not have the right to adopt resolutions on issues specified in clauses 7 (2) 1), 4) or 10) 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.
Division 2 § 18. Competence of management board (1) The management board shall manage and organise the activities of the Supervision Authority. The management board is competent to adopt all resolutions relating to the performance of the obligations of the Supervision Authority and to perform all obligations and exercise all rights which pursuant to this Act are not in the competence of the supervisory board, the chairman of the supervisory board or the chairman of the management board. The management board shall execute the resolutions made by the supervisory board pursuant to subsection 7 (2) of this Act. (2) In
issues relating to the conduct of financial supervision on the bases provided
for in the Acts specified in subsection 2 (1) of this Act, the management board
shall decide on: (3) In
issues relating to the management and organisation of activities, the
management board shall: § 19. Members of management board (1) The management board shall consist of three to five members. (2) The
members of the management board shall be appointed and removed by the
supervisory board. § 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: (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 the Bank of Estonia. (4) The provisions of § 31, subsections 32 (1) and (2) 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, he or she shall submit the information specified in subsection 32 (3) of this Act to the supervisory board in writing and confirmation that no circumstances exist which according to this Act would preclude his or her appointment as a member of the management board. The member of the management board shall notify the supervisory board immediately of any changes in the information submitted. § 21. Term of authority of members of management board (1) The term of the authority of members of the management board shall be three years. (2) The term of the authority of the member of the management board who is the chairman of the management board shall be four 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 management board member agrees to it. § 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: (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 shall appoint a new member of the management board within a reasonable period of time. § 221. Competence of management board members (1) A member
of the management board shall give orders on behalf of the Supervision
Authority for: (2) If a
person specified in clauses (1) 1)-3) of this section fails to perform a task
assigned thereto by the order by the date specified in the order a penalty
payment 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: (3) The chairman of the management board shall represent the Supervision Authority in court and in relations with other state agencies, the Bank of Estonia, other persons, international organisations for financial supervision, foreign financial supervision authorities and other competent foreign authorities, organisations and persons. (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 who represent 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: § 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 shall give notice to the management board if his or her child, parent, sister, brother, spouse or cohabitee, or a child, parent, sister or brother of his or her spouse 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 of 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 resolutions without calling meeting (1) The management board has the right to adopt resolutions without calling a meeting of the management board if all members of the management board consent thereto and hold a certificate for giving digital signatures issued pursuant to the Digital Signatures 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. § 29. Liability of members of management board (1) Members of the management board shall be solidarily liable for any damage wrongfully caused by their unlawful behaviour. (2) A member of the management board is required to compensate the state for any damage caused by violation of his or her duties intentionally or through gross negligence. Compensation claimed for damage caused through gross negligence shall not exceed six times the monthly remuneration paid to the member of the management board. (3) A member of the management board shall be released from liability if, upon adoption of a resolution which is in conflict with the law, he or she holds a position which is in accordance with the law and submits a corresponding dissenting opinion which is annexed to the minutes. (4) The limitation period for a claim against a member of the management board shall be three years as of the commission of the violation.
Chapter 3 § 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 the 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: (4) Before an employment contract is entered into with a person applying for employment, he or she is required to submit to the management board a written overview of his or her education, qualifications, in-service training, professional experience and business activities, the information specified in subsection 32 (3) of this Act, and confirmation that no circumstances exist which according to this Act would preclude his or her right to be an employee. (5) Upon entry into an employment contract, a probationary period of up to six months may be applied. (6) [Repealed - RT I 2009, 5, 35 - entered into force 1.07.2009] § 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 shall not be a shareholder with a qualifying holding in a subject of financial supervision, a person who exercises dominant influence over the management of such subject in any other manner or a member of the management body or a procurator thereof, a person who holds the right of representation on any other basis, or the auditor, head of the internal audit unit or chairman of the audit committee thereof, or a director or representative of an Estonian branch of a foreign company. (2) An employee shall not enter into agreements with a subject of financial supervision or persons specified in subsection (1) of this section according to which the employee is required to provide investment or consulting services. (3) Before
an employment contract is entered into with a person applying for employment
with the Supervision Authority, he or she shall, in the format established by
the Minister of Finance, submit information to the management board concerning
his or her proprietary obligations and those of his or her spouse or cohabitee,
children and parents to subjects of financial supervision, and information
concerning the securities owned by the abovementioned persons. The employee
shall immediately notify the management board of any relevant changes in the
information submitted. § 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 or cohabitee, or a child, parent, sister or brother of his or her spouse 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 of 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 any confidential information which they may receive while performing their duties for their private interests.
Chapter 4 Division 1 § 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 of Supervision Authority (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. (2) The management board shall prepare a proposal for using the budget surplus and shall submit it to the supervisory board for
approval.
Division 2 § 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 registrar of the Estonian Central Register of Securities, operators of securities settlement systems,
operators of regulated securities markets, insurers, credit institutions, paying institutions, e-money institutions and management companies
shall pay the capital share and the share calculated on the basis of assets of the supervision fee, except in the cases specified in
subsections 43 (5) and (6) of this Act. Companies who use the right provided by § 13 of the Paying Institutions and E-money Institutions Act
shall only pay a supervision fee in the amount of the share calculated on the basis of assets. (3) Insurance brokers, or Estonian branches of foreign companies who operate in the area of activity of investment firms, insurers,
insurance brokers, credit institutions, payment institutions, e-money institutions or management companies shall pay a supervision fee only
in the amount of the share calculated on the basis of assets, except in the cases specified in subsections 43 (5) and (6) 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 who operates in several areas of activity shall pay the supervision fee only as one supervision subject. (8) In application of the provisions of subsection (7) of this section, the following principles are applied: § 39. Rate of supervision fee (1) The
capital share of the supervision fee is an amount equal to one per cent of: (2) The
share of the supervision fee calculated on the basis of assets is an amount
equal to: (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 39 (2) of this Act. The rate shall be established by a regulation of the Minister of Finance 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 39 (2) 4) and 5) 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. (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, paying institution, e-money institution, investment firm 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 corresponding foreign subject of supervision, calculated according to the data on its
balance sheet 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 insurer providing 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 insurer, 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 Supervisory Authority. (3) In the case of an insurer providing 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 insurer during the first six months of the current year according to the data submitted to the
Supervisory Authority. (31) In the case of an insurer providing 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 insurer during the first six months of the current year according to the data submitted to the Supervisory
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 according to the annual accounts of the previous year submitted to the Supervision Authority. (5) In the case of the registrar of the Estonian Central Register of Securities, an operator of a securities settlement system or an
operator of the regulated securities market, the advance payment of the share of the supervision fee calculated on the basis of assets shall
be calculated on the basis of the business income earned by such persons according to the income statement of the previous year. (6) In the event of dissolution, calculation shall be based on the balance sheet prepared upon liquidation. § 42. Calculation of final amount of supervision fee (1) In the case of a credit institution, paying institution, e-money institution, investment firm 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 corresponding foreign subject of supervision, calculated according to the data on the
balance sheet thereof as at 31 March, 30 June, 30 September and 31 December of the preceding year submitted to the Supervision
Authority. (2) In the case of an insurer providing 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 insurer, 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
first six months of the current year according to the data submitted to the Supervisory Authority. (3) In the case of an insurer providing 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 insurer according to the data submitted to the Supervisory Authority. (31) In the case of an insurer providing 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 insurer according to the data submitted to the Supervisory 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 corresponding foreign insurance broker according to the annual accounts of the previous year submitted to the Supervision Authority. (5) In the case of the registrar of the Estonian Central Register of Securities, an operator of a securities settlement system or an operator of the regulated securities market, the final amount of the share of the supervision fee calculated on the basis of assets shall be calculated on the basis of the business income earned by such persons according to the income statement of 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 and gross insurance premiums of the previous year provided for in subsections (1)-(3) of this section as at 31 December. (7) In the event of dissolution, calculation shall be based on the balance sheet prepared upon liquidation. § 43. Payment of supervision fee (1) Payment of the supervision fee shall be requested in a corresponding precept sent by the Supervision Authority. (2) The supervision fee shall be paid as an advance payment and final payment. The size of the final payment of the supervision fee to
be paid during a particular budgetary year of the Supervision Authority (hereinafter budgetary year) shall be the final amount of the
supervision fee 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 44 (2) 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 44 (2) 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, insurer, insurance broker, credit institution, paying
institution, e-money institution or management company during the first half of a calendar year, the final payment of the supervision fee
shall be made in an amount equal to a half of the capital share of the supervision fee payable by the branch of the foreign investment firm,
insurer, insurance broker, credit institution, paying institution, e-money institution or management company. (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, insurer, insurance broker, credit institution, paying
institution, e-money institution or management company during the second half of a calendar year, the final payment of the supervision fee
shall be made in an amount equal to a quarter of the capital share of the supervision fee payable by the branch of the foreign investment
firm, insurer, insurance broker, credit institution, paying institution, e-money institution or management company. (9) In the cases provided by subsections (6) and (8) of this section, the amount of the capital share of the supervision fee payable by an insurance broker equals to 1,000
euros. [RT I 2005, 59, 463 - entered into force 15.11.2005] § 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. § 45. Consequences of failure to pay supervision fee If a person
required to pay a supervision fee fails to pay the supervision fee within the
prescribed term, the Supervision Authority has the right, in order to ensure
receipt of the supervision fee, to issue a precept for compulsory execution
pursuant to the procedure provided in the Code of Enforcement Procedure.
Division 3 § 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 1500 euros shall be 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 1,000 euros shall be paid upon application for an authorisation for an
insurer, investment firm, operator of a regulated securities market, operator of a securities settlement
system, paying institution, e-money institution or management company. (3) A processing fee of 1000 euros shall be paid for an authorisation for foundation of a branch of a third country insurer, investment firm, paying institution, e-money institution
or management company or for the provision, in Estonia, of cross-border services by an insurer, investment firm, paying institution, e-money institution or management company 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) A processing fee of 300 euros shall be paid upon application for a licence provided for in § 13
of the Paying Institutions and E-money Institutions Act. § 454. Application for additional activity licence A processing fee of 500 euros shall be paid upon application for an additional authorisation for a credit institution, insurer, investment firm, operator of the regulated securities
market or management company. § 455. Application for registration of public offer of securities A processing fee of 600 euros shall be paid upon application for registration of a prospectus for the public offer, trading or listing of securities, except for units or stocks
of investment funds. § 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 registration or amendment of fund rules, or offering of units or stocks of a foreign fund (1) A processing fee of 600 euros shall be paid upon application for approval for registration of fund rules of a contractual fund or foundation of a fund to be founded as a public limited company. (2) A processing fee of 200 euros shall be paid upon application for registration of an amendment of the 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 a public offer of units or stocks of a foreign fund. § 458. Application for approval of amendment of rules of regulated market A processing fee of 250 euros shall be paid upon application for approval of an amendment of the rules of a regulated market or an amendment of the rules of a multilateral trading
system. § 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 an 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 457 (2) 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 § 6 of this Act 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:
Chapter 5 § 46. Co-operation with international organisations (1) The Supervision Authority shall participate in and co-operate with international organisations within the limits of its competence. (2) The
Supervision Authority shall inform the European Commission of: (3) At the
request of the European Commission, the Supervision Authority shall inform the European Commission of: (31) The Supervision Authority shall inform the European Commission and the European Banking Committee of the grant of authority to a subsidiary of a third country credit institution to be founded in Estonia. (4) The
Supervision Authority shall inform the European Commission and other states
which are contracting parties to the EEA agreement (hereinafter EEA countries) of: (5) The Supervision Authority shall inform the European Committee of the
following decisions on a regular basis: (6) At the request of the European Committee, the Supervision Authority shall suspend for up to three months the making of a decision in proceedings for issuing an authorisation for a financial institution or for acquiring a qualifying holding in a financial institution pursuant to subsection (3) of this section, if a circumstance provided for in clause (2) 3) arises. § 47. Co-operation with foreign financial supervision authorities (1) For the performance of its duties and exchange of information, the Supervision Authority shall co-operate with foreign financial supervision authorities and other competent foreign bodies or persons, including bodies conducting dissolution and bankruptcy proceedings or similar proceedings in a foreign state, bodies organising deposit securing and investor protection schemes, bodies conducting supervision over the correctness of accounting and reporting of foreign issuers and financial institutions, and bodies conducting supervision over auditors auditing foreign financial institutions. (2) The Supervision Authority has the right to send confidential information necessary for the performance of its functions to the subjects of co-operation specified in subsection (1) of this section and to obtain such information therefrom and exchange such information therewith. Information sent, received or exchanged in this manner is deemed to be confidential. Provisions of § 18 of the Personal Data Protection Act shall not apply to the forwarding of personal data to foreign states, if the conditions provided in subsection (3) of this section are followed. (3) The Supervision Authority has the right to communicate confidential information to a foreign financial supervision authority or other competent foreign body or person only if the receiver of the confidential information is obliged to maintain the confidentiality of the information received and the information is necessary for the purposes of financial supervision. The Supervision Authority has the right to allow disclosure of the confidential information forwarded to a foreign financial supervision authority or to other competent foreign authority or person, on the bases provided in clauses 54 (4) 1)-10) and subsection (5) of this Act. (31) Information forwarded, received or exchanged on the basis of subsection (2) of this section shall be deemed confidential and the Supervision Authority may use such information only for the purposes of financial supervision. (4) Information received as a result of the co-operation specified in subsection (1) of this section may be disclosed in the cases provided for in clauses 54 (4) 1)-10) of this Act if a corresponding agreement has been entered into with the foreign financial supervision authority or other competent foreign authority or person. (5)-(6) [Repealed - RT I 2005, 13, 64 - entered into force 18.03.2005] (7) The Supervision Authority has the right to use the competence and rights granted thereto by this Act and other legislation in order to fulfil the request of a foreign financial supervision authority submitted for the receipt of information, restriction of a right or performance of another act or activity if, in the opinion of the foreign financial supervision authority, this is essential for the performance of its supervision activities. (8) The request of a supervision authority provided by subsection (7) of this section must be reasoned unless it is a request by a financial supervision authority of an EEA country. (9) The
Supervision Authority has the right to refuse to fulfil the request of an EEA country financial supervision authority only in the following cases: (10) The Supervision Authority shall inform the foreign financial supervision authority who submitted the request of its refusal to fulfil the request and set out the grounds and reasons for such refusal. (11) [Repealed - RT I 2010, 7, 30 - entered into force 26.02.2010] § 471. Cooperation in conducting financial supervision (1) A EEA country financial supervision authority and, in the case of a corresponding agreement with the Supervision Authority, also a third country financial supervision authority exercising supervisory control over a foreign financial institution who acts through its Estonian subsidiary has the right, after notifying the Supervision Authority, to perform an on-site inspection of the subsidiary in order to verify the information necessary for financial supervision, except if the Supervision Authority refuses on the bases provided for in subsection 47 (9) of this Act. The Supervision Authority has the right to participate in the on-site inspection of the subsidiary. The Supervision Authority shall direct and monitor supervision procedure 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 EEA country 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. (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 EEA country 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 EEA country, 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 EEA country for assessment of the suitability and conformity of shareholders, unit-holders, 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, insurer, paying institution, e-money institution or another person subject to financial supervision registered in an EEA country, 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. (5) The Supervision Authority shall notify the financial supervision authority of another contracting state if it has reasonable suspicion that a person not subject to its supervision has violated legislation specified in subsection 2 (1) of this Act in the territory of the other contracting state. (6) The Supervision Authority shall initiate supervisory proceedings upon receiving such information from a financial supervision authority of another contracting state that indicates that a subject of financial supervision has violated legislation specified in subsection 2 (1) of this Act. The Supervision Authority shall notify the financial supervision authority of another contracting state which has submitted the information, about the results of the supervisory proceedings and, if possible, about significant intermediate results. § 472. Procedure for making common decisions with competent authorities of EEA countries (1) For the grant, by way of common decision-making procedure, of the authorisation provided by §§ 867and 8641of the Credit Institutions Act, the Supervision Authority shall enter into an agreement with the financial supervision authority of the EEA country exercising supervision over the parent company concerning the details of processing the application for authorisation and the time-scheme to be applied. (2) The Supervision Authority shall hear the opinion of the Estonian subsidiary of the parent company operating within the European Economic Area and exchange relevant information with the competent authority specified in subsection (1) of this section. (3) In the course of the common decision-making procedure, the Supervision Authority shall submit, on solo and consolidated basis, its reasoned opinion and reservations necessary in the matter to the competent authority specified in subsection (1) of this section. (4) The Supervision Authority and the EEA financial supervision authority shall make a common decision concerning the grant of authorisation or refusal to grant authorisation specified in subsection (1) which shall contain the factual and legal basis of the decision and set out the necessary reservations for both the parent company and the subsidiary separately. (5) In the case of
consolidated supervision on the basis of subsection 97 (3) of the Credit
Institutions Act, the Supervision Authority shall submit a draft of the
agreement specified in subsection (1) of this section to the competent
authority of the EEA country who exercises supervision over the subsidiary of an Estonian company. § 48. Provision of information (1) The Supervision Authority has the right to obtain information necessary for the performance of its functions from the Bank of Estonia, the Ministry of Finance and other state agencies. (2) The Supervision Authority is required to provide the Bank of Estonia and the Ministry of Finance with information necessary for the performance of their functions. § 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 2 (1) of this Act. § 49. Co-operation of Supervision Authority with Bank of Estonia, Ministry of Finance and other state agencies in field of legislative drafting (1) [Repealed - RT I 2005, 59, 463 - entered into force 15.11.2005] (2) The Supervision Authority has the right to submit proposals for the preparation, amendment or repeal of legislation, and reviews concerning the effect and application of legislation dealing with activities of the financial sector and with financial supervision to the Bank of Estonia, 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 the Bank of Estonia, 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 co-ordinated with the Supervision Authority. § 50. Co-operation agreements (1) The Supervision Authority may enter into a bilateral or multilateral agreement for co-operation with the Bank of Estonia, the Ministry of Finance or any other state agency if such co-operation is necessary to promote attainment of the objectives of financial supervision. (2) The Supervision Authority, the Ministry of Finance and the Bank of Estonia shall, on the basis of a written agreement, co-operate in the collection and analysis of reporting, the drafting of legislation and the exchange of information in the 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 49 (3) 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.
Chapter 6 § 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 auditors 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 annual statement of revenue and expenditure of the Supervision Authority shall be audited by an auditor of the Bank of Estonia. (4) The annual report of the Supervision Authority approved by the supervisory board shall be submitted to the Riigikogu[2] together with the annual report of the Bank of Estonia. 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 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 shall publish the resolutions of the supervisory board on its web site. Resolutions containing information specified in clauses 7 (2) 7) or 8) or subsection 54 (2) of this Act, with the exception of information concerning circumstances relating to the termination of the contract of service of the chairman of the management board, are not public information. (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: (4) On its website, the Supervision Authority shall publish, pursuant to the procedure and to the extent established by the Minister of Finance, information on: § 54. Confidentiality of information received during supervision (1) Proceedings conducted by the Supervision Authority for the conduct of financial supervision shall not be public. (2) Information obtained in the course of financial supervision from the subjects of financial supervision or other persons or agencies, including data, documents and other information, certificates, reports and precepts prepared in the course of financial supervision, and other documents and any type of data media containing information on the results of financial supervision shall be confidential. (3) Information is not confidential if it has been published pursuant to the procedure prescribed in the Acts specified in subsection 2 (1) of this Act or legislation established on the basis thereof or if the information disclosed does not enable data concerning specific persons to be ascertained. (4) Confidential
information specified in subsection (2) of this section and documents
containing information on the results of financial supervision may be disclosed to: (5) The Supervision Authority has the right to disclose, in full or in part, a decision, administrative act or contract under public law as of the date of its issue or conclusion if this is necessary for the protection of investors, clients of financial supervision subjects or the public, or for ensuring the lawful or regular functioning of the financial market. (6) The Supervision Authority has the right to disclose systematised or statistical data about financial supervision subjects, which reflect in a generalised way the financial state of the financial supervision subjects, the services provided or the activities performed by the financial supervision subjects and changes thereof. Disclosure of such data is allowed only if the data do not allow identifying the data of any individual client of a financial supervision subject and do not allow identifying any individual client of a financial supervision subject belonging to a set characterised by the summary data.
Chapter 7 § 55. Decisions and precepts of management board and orders of members of management board (1) The management board makes decisions and issues precepts on behalf of the Supervision Authority. (11) Under the
common decision-making procedure, the management board shall make common
decisions with the financial supervision authorities on EEA countries 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 221 (1) 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. § 56. Precepts 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 53 (3) of this Act. § 58. Liability of Supervision Authority (1) The liability of the Supervision Authority for rights violated or damage caused in the conduct of financial supervision, and the bases of and procedure for the restoration of violated rights and the payment of compensation for damage caused shall be provided by law. (2) The Supervision Authority shall be liable for damage not related to the conduct of financial supervision pursuant to the provisions of private law and within the limits of the funds prescribed in its budget. If the funds prescribed in the budget of the Supervision Authority are not sufficient, the damage shall be compensated for by the Bank of Estonia.
Chapter 8 § 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 Board of the Bank of Estonia 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 61 (1) 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 the Bank of Estonia, 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 86 3) 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 21 (3) of this Act. (3) Until the term of the authority of the members of the management board provided for in subsection 60 (4) 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 the Bank of Estonia 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 an 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 the Bank of Estonia 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 86 3) 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 the Bank of Estonia, 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 the Bank of Estonia shall be liable with the budgetary funds thereof for proprietary obligations which arise out of the activities of the Banking Supervision of the Bank of Estonia 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 the Bank of Estonia 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 2 (1) 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 the Bank of Estonia 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 the Bank of Estonia 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 the Bank of Estonia 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. (7) [Repealed - RT I 2010, 22, 108 - entered into force 01.01.2011] § 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 the Bank of Estonia which is recorded or documented in any manner on any data media shall be transferred to the Supervision Authority. (2) A member of the management board or an employee of the Supervision Authority may disclose confidential information obtained in the course of the supervision activities of the Securities Inspectorate, the Insurance Supervision Authority or the Banking Supervision to other members of the management board or employees of the Supervision Authority if this is necessary for the performance of their duties. § 66. Entry into force of Act (1) This Act enters into force on 1 June 2001. (2) Clauses 7 (2) 4)-7), subsection 14 (5), subsection 18 (2), clauses 18 (3) 3), 4), 8), 10) and 13)-15), §§ 20-22, 29, 51 and 52, subsection 53 (3) and §§ 54, 55, 57 and 58 of this Act enter into force on 1 January 2002. (3) Subsection 53 (4) of this Act enters into force on 1 July 2002. [1] RT = Riigi Teataja = the State Gazette |