Chapter II
Supervisory and Directing Bodies of Eesti Pank and their Competence

[Extract from the Eesti Pank Act (consolidated text, January 2011)]

§ 6. Supervisory Board of Eesti Pank

The supervisory body of Eesti Pank is the Supervisory Board of Eesti Pank, which consists of a Chairman and seven members.
[RT I 2010, 22, 108 - entered into force 01.01.2011]

§ 7. Chairman of Supervisory Board of Eesti Pank

(1) The Chairman of the Supervisory Board of Eesti Pank is appointed to office for a term of five years by the Riigikogu on the proposal of the President of the Republic.

(1¹) The Chairman of the Supervisory Board of Eesti Pank shall notify the President of the Republic of his or her resignation from office at least four months in advance.
[RT I 2003, 21, 121 - entered into force 15.03.2003]

(2) The Chairman of the Supervisory Board of Eesti Pank must be an Estonian citizen and have a university degree. The Governor of Eesti Pank or the Minister of Finance shall not be appointed as the Chairman of the Supervisory Board of Eesti Pank.
[RT I 2008, 14, 93 - entered into force 06.04.2008]

(3) The Chairman of the Supervisory Board of Eesti Pank shall organise the activities of the Supervisory Board, chair the meetings of the Supervisory Board, monitor the implementation of the Supervisory Board's decisions, represent the Supervisory Board of Eesti Pank and respond to interpellations concerning the activities of the Supervisory Board of Eesti Pank submitted to him or her in the Riigikogu.

§ 8. Members of Supervisory Board of Eesti Pank

(1) The members of the Supervisory Board of Eesti Pank are appointed by the Riigikogu on the proposal of the Chairman of the Supervisory Board of Eesti Pank.

(2) Members of the Supervisory Board of Eesti Pank must be Estonian citizens and have a university degree.

(3) Members of the Government of the Republic and employees of Eesti Pank shall not be members of the Supervisory Board of Eesti Pank.

(4) A member of the Supervisory Board of Eesti Pank shall not be an employee of any management institution, investment fund, investment company, credit institution, insurance company or other subject of financial supervision, nor be a member of the decision-making body of any such institution.

(5) The members of the Supervisory Board of Eesti Pank shall be appointed for a term of five years.

(6) The authority of a member of the Supervisory Board of Eesti Pank shall terminate upon the expiry of his or her term of authority, upon his or her resignation or, pursuant to the procedure prescribed in § 12 of this section, dismissal, or in the event of his or her death.

(6¹) A member of the Supervisory Board shall notify the Chairman of the Supervisory Board of his or her resignation from office at least four months in advance.

(7) If a member of the Supervisory Board of Eesti Pank is appointed as a member of the Government of the Republic or commences work at Eesti Pank, the Riigikogu shall, on the proposal of the Chairman of the Supervisory Board of Eesti Pank, appoint an alternate member of the Supervisory Board whose authority terminates when the member of the Supervisory Board of Eesti Pank leaves the office which precludes his or her membership of the Supervisory Board of Eesti Pank or when he or she ceases to be employed at Eesti Pank.

(8) The authority of members appointed to the Supervisory Board of Eesti Pank at a later time terminates at the same time as the authority of the given composition of the Supervisory Board of Eesti Pank.
[RT I 2006, 29, 219 - entered into force 08.07.2006]

§ 9. Competence of Supervisory Board of Eesti Pank

(1) The Supervisory Board of Eesti Pank shall exercise supervision over all the activities of Eesti Pank.

(2) The following issues are within the exclusive competence of the Supervisory Board of Eesti Pank:
1) [Repealed - RT I 2003, 15, 88 - entered into force 01.05.2004]
2) making a proposal to the President of the Republic for appointment of the Governor of Eesti Pank;
3) [Repealed - RT I 2001, 59, 358 - entered into force 01.01.2002]
4) appointment to office and release of Deputy Governors of Eesti Pank, the heads of the independent divisions and representative offices of Eesti Pank, and the head of the internal audit department of Eesti Pank and for the appointment and removal of members of the Supervisory Board of the Financial Supervision Authority on the proposal of the Governor of Eesti Pank;
5) approval of the statute of Eesti Pank, the statutes of the independent divisions and representative offices of Eesti Pank and the statutes of the internal audit department;
6) supervision of the implementation of the budget of Eesti Pank;
7) appointment of internal auditors of Eesti Pank and approval of the work schedule for internal audits.
7¹) appointment of the independent auditors of Eesti Pank pursuant to the procedure provided in subsection 31 (1) of this Act;
8) approval of Eesti Pank's annual report on the proposal of the Governor;
9) passing decisions on the design of the national side of Estonian euro coins and on the nominal value and design of collector coins, pursuant to the legislation of the European Union;
[RT I 2010, 22, 108 - entered into force 01.01.2011]
10) deciding, on the proposal of the Governor of Eesti Pank, on the establishment, reorganisation and liquidation of independent divisions of Eesti Pank;
11) review and approval of written proposals and other documents submitted to the Riigikogu in the name of Eesti Pank.

(2¹) The Supervisory Board of Eesti Pank shall regularly obtain information from the Governor of Eesti Pank concerning Estonia's economy and monetary policy, the situation in the financial sector and the implementation of Eesti Pank's budget.

(3) Decisions concerning the activities of Eesti Pank shall be formulated as decisions of the Supervisory Board of Eesti Pank.

(4) Meetings of the Supervisory Board of Eesti Pank shall be held as necessary but not less frequently than eight times a year.

(5) Meetings of the Supervisory Board of Eesti Pank shall be closed unless otherwise decided by the Chairman of the Supervisory Board rs of Eesti Pank participate in the meetings with the right to speak. The Minister of Finance of the Republic of Estonia may participate in the meetings, taking account of the provisions of Article 130 of the Treaty establishing the European Community.
[RT I 2010, 22, 108 - entered into force 01.01.2011]

(6) The Supervisory Board of Eesti Pank shall pass decisions and issue statements. The Governor of Eesti Pank shall be responsible for the implementation of decisions of the Supervisory Board of Eesti Pank.

(7) The Supervisory Board of Eesti Pank has a quorum if at least five members participate in the meeting. In the absence of the Chairman, a member of the Supervisory Board elected from among those present shall chair the meeting.

(8) Decisions on issues specified in clauses (2) 2), 5), 6) and 8) of this section shall only be passed by a majority vote of the members of the Supervisory Board. Other decisions shall be passed by a majority vote of those members of the Supervisory Board present at the meeting. If the votes are equally divided, the Chairman of the Supervisory Board shall have the deciding vote.

(9) Decisions of the Supervisory Board of Eesti Pank which are of a regulatory nature shall be published in the Riigi Teataja.
[RT I 2006, 29, 219 - entered into force 08.07.2006]

§ 10. Governor of Eesti Pank
[RT I 2006, 29, 219 - entered into force 08.07.2006]

(1) The Governor of Eesti Pank is appointed to office for a term of seven years by the President of the Republic on the proposal of the Supervisory Board of Eesti Pank.The Governor of Eesti Pank shall not be appointed to office for more than one consecutive term.
[RT I 2006, 29, 219 - entered into force 08.07.2006]

(1¹) The Governor of Eesti Pank shall notify the Supervisory Board of Eesti Pank of his or her resignation at least four months in advance.

(2) The Governor of Eesti Pank must be an Estonian citizen and have a university degree. Deputy Governors of Eesti Pank must be Estonian citizens and have a university degree.
[RT I 2008, 14, 93 - entered into force 06.04.2008]

(2¹) Deputy Governors of Eesti Pank shall be appointed to office by the Supervisory Board of Eesti Pank for a term of five years on proposal of the Governor of Eesti Pank.
[RT I 2006, 29, 219 - entered into force 08.07.2006]

(3) The Governor and Deputy Governors of Eesti Pank shall be independent in the performance of their functions. They shall not hold any other office, be in service or be party to any activities which, by their nature, restrict or may restrict the autonomy of Eesti Pank or adversely affect or may adversely affect Eesti Pank in the achievement of its objectives or the performance of its functions.
[RT I 2006, 29, 219 - entered into force 08.07.2006]

(4) In the absence of the Governor of Eesti Pank, a Deputy Governor shall substitute for him or her and the Governor of Eesti Pank shall transfer his or her authority temporarily to the Deputy Governor by a regulation. If it is not possible to transfer the authority to a Deputy Governor, the Supervisory Board of Eesti Pank shall designate the person to substitute for the Governor from among the Deputy Governors. If the Supervisory Board has not designated a person to substitute for the Governor, the Deputy Governor who is senior in age shall substitute for the Governor. The person substituting for the Governor of Eesti Pank shall, during his or her term of authority, have the full authority of the Governor of Eesti Pank.
[RT I 2006, 29, 219 - entered into force 08.07.2006]

§ 11. Competence of Governor of Eesti Pank

(1) The following issues are within the exclusive competence of the Governor of Eesti Pank:
1) designing of banking policies, general management of Eesti Pank's activities and organisation of the performance of the tasks of the European System of Central Banks;
2) organisation of the implementation of decisions of the Supervisory Board of Eesti Pank and the application of measures (including sanctions) necessary to ensure their implementation;
3) [Repealed - RT I 2003, 15, 88 - entered into force 01.05.2004]
4) representation of Eesti Pank without special authorisation in all matters and instances both in Estonia and abroad;
5) grant of authorisation to represent Eesti Pank in certain cases or in certain matters;
6) making proposals to the Supervisory Board of Eesti Pank for the appointment to office and release of the Deputy Governors and the head of the internal audit department of Eesti Pank and the heads of the independent divisions of Eesti Pank, and for the appointment and removal of members of the Supervisory Board of the Financial Supervision Authority;
7) approval of Eesti Pank's budget;

(2) The Governor of Eesti Pank shall report to the Riigikogu and respond to interpellations concerning Eesti Pank's activities submitted to him or her in the Riigikogu.

(3) If the Governor of Eesti Pank does not agree with a decision of the Supervisory Board of Eesti Pank, he or she shall report to the President of the Riigikogu not later than within three working days and make a proposal to submit an interpellation in the matter to the Chairman of the Supervisory Board of Eesti Pank.

(4) The Governor of Eesti Pank shall report regularly on his or her activities to the Supervisory Board of Eesti Pank.

(5) The Governor of Eesti Pank shall issue regulations and decrees.

(6) The regulations of the Governor of Eesti Pank shall be published in the Riigi Teataja.
[RT I 2006, 29, 219 - entered into force 08.07.2006]

§ 11¹. Access of Governor of Eesti Pank and Chairman and members of Supervisory Board of Eesti Pank to state secrets and classified information of a foreign state

(1) The Governor of Eesti Pank and the Chairman and members of the Supervisory Board of Eesti Pank have the right by virtue of office to access state secrets and classified information of foreign states in order to perform duties which have been assigned to them by the Constitution or Acts of the Republic of Estonia and by legislation issued on the basis thereof.

(2) If, under an international agreement, performance of security vetting is a mandatory prerequisite for granting right for access to classified information of a foreign state, security vetting shall be performed with respect to the Governor of Eesti Pank, Chairman and members of the Supervisory Board of Eesti Pank, except a member of the Riigikogu being a member of the Supervisory Board of Eesti Pank.

(3) Security vetting with respect to the Governor of Eesti Pank, Chairman and member of the Supervisory Board of Eesti Pank shall be performed by the Security Police Board as provided by the State Secrets and Classified Information of Foreign States Act.

(4) For passing security vetting, the Governor of Eesti Pank, Chairman or member of the Supervisory Board of Eesti Pank is required to complete the application form for a Personnel Security Clearance and sign a consent that shall entitle an agency competent to conduct security verification to obtain information concerning the person from natural and legal persons and from institutions and bodies of local government, submitting the documents to the Security Police Board.

(5) The Security Police Board shall perform security vetting with respect to the Governor of Eesti Pank, Chairman and member of the Supervisory Board of Eesti Pank within three months as of the receipt of documents, specified in subsection (4) of this section. A Personnel Security Clearance Certificate for Access to Foreign Classified Information shall be issued under the procedure specified in the State Secrets and Classified Information of Foreign States Act.
[RT I 2007, 16, 77 - entered into force 01.01.2008]

§ 11². Security clearance of candidates for Governor of Eesti Pank and for Chairman and members of Supervisory Board of Eesti Pank

(1) Candidates for the position of Governor of Eesti Pank, Chairman and member of the Supervisory Board of Eesti Pank must pass security vetting before being appointed Governor of Eesti Pank, Chairman or member of the Supervisory Board of Eesti Pank, except when holding a valid Personnel Security Clearance classified as 'top secret' or if holding an office, when becoming a candidate, granting access to all the classification levels of state secrets by virtue of office.
[RT I 2007, 16, 77 - entered into force 01.01.2008]

(2) The status of candidate for Chairman of the Supervisory Board of Eesti Pank is acquired by a person to whom the President of the Republic makes a proposal to apply for the office and who agrees thereto in writing. The status of candidate for member of the Supervisory Board of Eesti Pank is acquired by a person to whom the Chairman of the Supervisory Board of Eesti Pank makes a proposal to apply for the office and who agrees thereto in writing. The status of candidate for Governor of Eesti Pank is acquired by a person to whom the Supervisory Board of Eesti Pank makes a proposal to apply for the office and who agrees thereto in writing.

(3) The security vetting of candidates for Governor of Eesti Pank and for Chairman and member of the Supervisory Board of Eesti Pank shall be performed by the Security Police Board pursuant to the procedure provided for in the Security Authorities Act.
[RT I 2007, 16, 77 - entered into force 01.01.2008]

(4) In order to pass the security check, candidates for Governor of Eesti Pank and for member of the Supervisory Board of Eesti Pank shall submit through Eesti Pank and candidates for Chairman of the Supervisory Board of Eesti Pank shall submit through the Office of the President of the Republic a completed application form for a permit to access state secrets to the Security Police Board, and also written consent which permits the agency performing security checks to obtain information concerning the person from natural and legal persons and from state and local government agencies and bodies during the performance of the security check.
[RT I 2007, 16, 77 - entered into force 01.01.2008]

(5) Within three months as of receipt of the documents specified in subsection (4) of this section, the Security Police Board shall present the information gathered as a result of the security check on a candidate for Governor of Eesti Pank to the Supervisory Board of Eesti Pank, the information gathered as a result of the security check on a candidate for Chairman of the Supervisory Board of Eesti Pank to the President of the Republic and the information gathered as a result of the security check on a candidate for member of the Supervisory Board of Eesti Pank to the Chairman of the Supervisory Board of Eesti Pank and shall provide an opinion concerning the compliance of the candidate with the conditions for the issue of a permit for access to state secrets.

(6) If the authority of the Chairman of the Supervisory Board of Eesti Pank or the Governor of Eesti Pank terminates prematurely, a security vetting on the candidate for Chairman of the Supervisory Board of Eesti Pank or for Governor of Eesti Pank shall be performed within one month as of receipt of the documents specified in subsection (4) of this section. With the permission of the Security Committee of the Government of the Republic, the term for performing the security vetting may be extended by one month if circumstances specified in clause 33 (4) 1) or 2) of the State Secrets and Classified Information of Foreign States Act arise or if it is possible that circumstances specified in clause 33 (4) 3) or 4) of the State Secrets Act may arise within one month.
[RT I 2007, 16, 77 - entered into force 01.01.2008]

(7) A candidate may be appointed for office, supported by data collected as the result of security vetting, within nine months as of the communication of information collected as the result of security vetting to a competent authority or constitutional institution by an agency performing security vetting. A candidate may be appointed to the office after the expiry of this term only after passing another security vetting.
[RT I 2007, 16, 77 - entered into force 01.01.2008]

§ 11³. Extension of authority

If a new Governor of Eesti Pank or a new Chairman or member of the Supervisory Board of Eesti Pank has not been appointed by the due date for termination of the authority of the Governor of Eesti Pank or the Chairman or a member of the Supervisory Board of Eesti Pank, the authority of the person in office shall extend until the entry into force of a corresponding decision on appointment to office.
[RT I 2003, 15, 88 - entered into force 27.02.2003]

§ 12. Dismissal

(1) The Chairman and members of the Supervisory Board of Eesti Pank may be dismissed upon the entry into force of a judgment of conviction.

(2) The Governor and a Deputy Governor of Eesti Pank may be dismissed only on the basis specified in Article 14.2 of the Statute of the European System of Central Banks and of the European Central Bank.
[RT I 2006, 29, 219 - entered into force 08.07.2006]

§ 13. Executive Board of Eesti Pank

(1) Eesti Pank's activities are managed by the Executive Board of Eesti Pank, the Chairman of which by virtue of office shall be the Governor of Eesti Pank.The Executive Board of Eesti Pank is composed of the Governor of Eesti Pank and the Deputy Governors.

(1¹) The Executive Board shall be responsible for planning and organising Eesti Pank's activities.The Governor of Eesti Pank may assign additional functions to the Executive Board. The Executive Board passes decisions for performance of the functions thereof.

(2) The division of tasks and bases for the organisation of work of the Executive Board of Eesti Pank shall be provided for in the statute of Eesti Pank.
[RT I 2006, 29, 219 - entered into force 08.07.2006]