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In July 1997 a special one man taskforce was appointed by the Ministry of Finance to prepare a proposal for the reorganization of the supervision of Finland's financial and insurance markets. Particular attention was to be paid to the integration and technical development of the financial and insurance markets.

  • The proposal suggests that a new Finance Supervision should be established to oversee banking, investment services and insurance. Combined supervision is intended as the cheapest way to prevent grey market industries forming between the traditional business areas. The practical experience of countries that have already adopted this system is positive.
  • The new authority will be independent of the state personnel administration and budget. It will be organized according to function and not by the institutions or firms providing the service.
  • The proposal emphasizes the division between the supervision and the drafting of legislation and the issuance of lower provisions. This division exists in banking and capital markets, but insurance supervision is carried out by the same authority that drafts the laws. The concentration of these two opposing tasks within one authority does not, according to the proposal, comply with good administrative practice and it is not well suited to the purpose of supervision.

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