Legislation

Table of content

Legislation

Finnvera's and its subsidiaries' operations are governed by and organised according to the Limited Liability Companies Act and the Acts pertaining specifically to Finnvera as well as by the industrial and ownership policy goals determined by the State. In addition to the legislation and the company’s own Articles of Association, Finnvera complies with the recommendations of the Financial Supervisory Authority and the Finnish Corporate Governance Code, whenever applicable. Bank regulation defined in the EU's credit institutions directive is not applied to Finnvera's operations.

Since the decisions made by Finnvera on financing are bound by the legislation, the same predetermined criteria are used to assess each financing decision. These criteria are based on the assessment of the various components of profitability in the enterprise’s business. Acting within this framework, Finnvera applies independent discretion when carrying out its tasks. Finnvera’s financing decisions, or the assessment of the credit risk and the profitability of the applicant’s business, are not subject to the right of appeal. However, the client always has the option of applying for financing again.

Furthermore, anyone who suspects that a body discharging public administrative duties, such as Finnvera, has acted unlawfully or has not fulfilled its duties is entitled to lodge an administrative complaint in accordance with Chapter 8a of the Administrative Procedure Act. The complaint is submitted in writing to the Ministry of Economic Affairs and Employment, which supervises Finnvera’s activities. In its decision, the Ministry of Economic Affairs and Employment may draw Finnvera's attention to the requirements of good governance or may inform of the Ministry’s understanding of the lawful procedure.

Any suspicions of malpractice or breach of operating principles can also be confidentially brought to the knowledge of Finnvera’s Risk Management via whistleblowing channel.

Acts concerning Finnvera's operations

You can browse the Acts concerning Finnvera’s operations via the links below:

Act on the State-Owned Specialised Financing Company, 18.6.1998/443
Act on the State Guarantee Fund, 18.6.1998/444
Act on Credits and Guarantees Provided by the State-Owned Specialised Financing Company, 18.6.1998/445
Act on the State's Export Credit Guarantees, 23.5.2001/422
Act on State Guarantees Granted to Companies Engaged in Shipbuilding or Shipowning Operations, 24.7.1972/573
Act on State Guarantees for Ensuring the Supply of Basic Raw Materials, 26.7.1985/651
Act on State Guarantees and Export Guarantees Granted to Industry for Investments Promoting Environmental Protection 13.7.1973/609

State aid rules

As a publicly owned financing company, Finnvera must comply with the EU rules on State aid when providing financial services.

Loans and guarantees granted by Finnvera are considered to include State aid if the enterprise is granted financing at a rate below the reference rate determined by the EU Commission. In connection with each financing decision, Finnvera checks whether the financing can include imputed State aid or not and selects a form of aid that may be suitable for the case. However, due to State aid rules, export guarantees must always be rated in such a way that they do not include any aid.

When a loan or guarantee provided by Finnvera includes aid, it must be based on grounds compliant with State aid rules, under which the aid is permitted as an instrument compatible with the Single Market.

Financing granted by Finnvera for investment purposes may include project-specific investment and employment aid granted to SMEs in accordance with the EU’s General Block Exemption Regulation (so-called SME aid). Alternatively, Finnvera's financing may include so-called de minimis aid, granted for a single undertaking, the maximum amount of which is EUR 200,000 for each undertaking over a three-year period. In addition, Finnvera can use the SME Rescue and Restructuring Aid Scheme that is suitable for financing enterprises in difficulty.

Additional information on the EU rules on State aid.

The most important rules under which the aid included in financing can be considered to be compatible with the Single Market and which are relevant to financing provided by Finnvera are:

  • Commission Regulation on de minimis aid (Regulation (EU) No 1407/2013)
  • General block exemption Regulation issued by the Commission (Regulation (EU) No 651/2014)
  • Communication from the Commission on reference rates (Commission Communication 2008/C 14/02)
  • Commission Notice on guarantees (Commission Notice 2008/C 155/02
  • Community guidelines on rescuing and restructuring aid (Commission Communication 2014/C 249/01)

The aid schemes used by Finnvera:

Finnvera’s Corona Aid Scheme

In certain circumstances, it may happen that the primary form of State aid in Finnvera’s financing, de minimis aid, cannot be granted. This refers especially to circumstances in which the enterprise is about to reach or has reached the maximum total aid amount or if the enterprise meets the requirements of the definition of an enterprise in difficulties according to the de minimis decree.

As a rule, these circumstances would require that a higher price according to the market price level confirmed by the EU, or pricing without including aid, is determined for financing. Alternatively, Finnvera can use corona aid within the framework of the temporary COVID-19 Aid Scheme that has been confirmed for it by the EU.

The use of the COVID-19 State aid scheme makes it possible to price financing on equivalent terms and conditions as in the case of de minimis aid. Furthermore, it facilitates the accumulation of different forms of aid granted to enterprises, as financing granted by Finnvera within the framework of this scheme is not added up with aid or financing granted by other authorities. As a result, financing granted by Finnvera does not place restrictions on receiving other official aid that the enterprise may apply for. It does not influence the enterprise’s or the Group’s de minimis aid quota either.

  • Please note! If Finnvera's corona-subsidized financing is granted for the same project that ELY grants development assistance for investment, the maximum project-specific support and the maximum amount of public funding of 75 percent must be taken into account.

The use of the COVID-19 State aid scheme entails more specific requirements regarding the maximum financing capital, for instance. In addition, information about the recipients of financing must be reported retrospectively to the European Commission, to be published in the EU’s State Aid Portal. The need for using the COVID-19 State aid scheme and the aid requirements are reviewed with the client in connection with the granting of financing.

Investment aid granted for SMEs

As regards State aid granted by virtue of Finnvera’s programme concerning State aid for SMEs in the form of loans and guarantees, Finnvera complies with the transparency requirements specified in Article 9 Article 9 of General block exemption Regulation issued by the Commission (Regulation (EU) No 651/2014). In accordance with the transparency requirements, the granting authority must publish information on all beneficiaries whose aid exceeds EUR 500,000, as stipulated in the guidelines.

Beneficiary

Company size

Sector

Region (NUTS II level)

Form of aid

Date of granting

Amount of aid

No aid granted

-

-

-

-

-

-

 

State aid granted for rescuing and restructuring

As regards State aid granted by virtue of Finnvera’s programme concerning State aid for rescuing and restructuring, Finnvera complies with the transparency requirements specified in point 96 of the Commission’s Guidelines on State aid for rescuing and restructuring (2014/C249/01). In accordance with the transparency requirements, the granting authority must publish information on all beneficiaries whose aid exceeds EUR 500,000, as stipulated in the guidelines.

Beneficiary

Company size

Sector

Region (NUTS II level)

Form of aid

Date of granting

Amount of aid

No aid granted

-

-

-

-

-

-

Confidentiality of operations

Client information

In its financing operations, Finnvera is bound by law to so-called bank secrecy. The bank secrecy applies to any client relationship information, including the potential existence of a client relationship. Infringement of the confidentiality obligation is punishable by law. (Act on the State-Owned Specialised Financing Company, 443/1998)

However, to fulfil its part in ensuring the best possible services for its clients Finnvera may disclose client information under certain circumstances, based on law or the client’s separate consent, especially to Team Finland parties, e.g. Business Finland Oy and Centres for Economic Development, Transport and the Environment, taking part in the provision of business services.

Insider information

In processing insider information disclosed by listed company clients, Finnvera follows a strictly confidential procedure that is restricted in terms of processors and monitored through an insider register specifically compiled for each financing project.

Data protection

Finnvera complies with the obligations related to the protection of privacy in accordance with the General Data Protection Regulation in all its personal data processing. Finnvera only collects and processes personal data for legal purposes. For more information, please see Finnvera's privacy statement.

Information security

Information security is an essential and irremovable part of Finnvera’s operations.

Finnvera’s operations depend on information, which is why ensuring appropriate and secure processing of data is a key goal in Finnvera’s corporate security.

In its operations, Finnvera is committed to comply with the information security regulations of the state administration, and our information security fulfils the so-called increased-level information security requirements set in legislation. The employees are instructed on secure operations in line with good data processing practices with the help of guidelines and training.

Preventing money laundering and the financing of terrorism

In its financing operations, Finnvera complies with practices against money laundering and the financing of terrorism by utilising the client identification and KYC (Know Your Customer) obligations recommended by the Financial Supervisory Authority, where applicable.

The KYC obligations include verifying the identity of the client, the person acting on behalf of the client and the actual beneficiaries of the client, collecting data on the purpose and nature of the intended client relationship and storing client information.

The objective is to ensure that no funds obtained from illegal sources are transmitted to a financing system through Finnvera and that no obtained funding is used to finance terrorism or other illegal operations. Finnvera also aims to ensure its compliance with international sanctions by utilising the KYC obligations.