Sanctions in the financial markets

In Finland, the sanctions regime in the financial markets is largely based on EU legislation. Member States are obliged to issue provisions on the administrative sanctions that can be imposed in the event of a breach of either the directly applicable provisions of EU regulations or the national provisions transposing EU directives. As a rule, Member States may use their discretion in deciding whether they want to lay down provisions on liability for damages.

In Finland, the sanctions regime in the financial markets is based on the broad scope of application of administrative sanctions under EU legislation. The available administrative sanctions are an administrative fine, a public warning and a penalty payment. The amount of an administrative fine or penalty payment is based on an overall assessment that takes into account the nature, scope and duration of the conduct. The maximum amount of an administrative fine is EUR 100,000 for a legal person and EUR 10,000 for a natural person. A penalty payment may amount to at most 15 per cent of consolidated turnover for legal persons and to EUR 5 million for natural persons.

Administrative sanctions are imposed by the Financial Supervisory Authority. The Financial Supervisory Authority publishes the administrative sanctions that it imposes on its website. A decision of the Financial Supervisory Authority to impose a sanction may be appealed to the Helsinki Administrative Court.

Some of the most serious acts and omissions have been criminalised in legislation governing the financial markets or in the Criminal Code. For example, chapter 51 of the Criminal Code includes provisions on abuse on inside information relating to a financial instrument or crypto-asset and on information offences relating to the securities and crypto-asset markets. Several statutes governing the financial markets also contain provisions on liability for damages.

Read more:

Act on the Financial Supervisory Authority, (chapter 4, Administrative sanctions) Finlex

Criminal Code, (chapter 51, Securities and crypto-asset market offences) Finlex

Contacts

Reima Letto, Senior Ministerial Adviser, Head of Unit
Ministry of Finance, Financial Markets Department, Unit for Banking and Market Infrastructure
Telephone: +358 295 530 426
Email: [email protected]

Anu Ranta, Senior Ministerial Adviser, Head of Unit 
Ministry of Finance, Financial Markets Department, Unit for Capital Markets
Telephone: +358 295 530 510 
Email: [email protected]

Elina Rantakokko, Senior Ministerial Adviser, Head of Unit 
Ministry of Finance, Financial Markets Department, Unit for Preventing Money Laundering and Terrorist Financing
Telephone: +358 295 530 507)
Email: [email protected]