ESTONIA: FSA and Guarantee Fund merged together

9 January 2020 —
From the beginning of 2020, the Financial Supervision Authority (FSA) and the Guarantee Fund of Estonia will operate under one roof. The merger will help the Guarantee Fund to fulfill its statutory objectives more quickly and efficiently and save costs.

The role of the Guarantee Fund is to ensure the protection and compensation of deposits, investments and mandatory pension fund units in accordance with the procedure provided by law.

The Cooperation Agreement will allow the Guarantee Fund to use the infrastructure and expertise of the FSA to achieve these objectives and increase its operating capacity.

"The need for close co-operation between the FSA and the Guarantee Fund came to the fore when the FSA withdrew Versobank's license and the depositors of the bank began to be reimbursed. It is wise to operate under a common roof in order to solve crises in the same way for depositors in the future," said Kilvar KESSLER, Head of the FSA.

"Both the Guarantee Fund and the FSA are working to ensure that the Estonian financial sector is sound and that depositors' rights are protected. Closer cooperation with the FSA will certainly help to achieve this objective," said Riin HEINASTE, Director of the Guarantee Fund.

The Guarantee Fund was set up in 2002. The fund currently has assets worth of EUR 231 million, most of which (EUR 221 million) come from the Deposit Guarantee Fund. There are EUR 1.2 million in the Investor Protection Sectoral Fund and EUR 8.2 million in the Pension Protection Sectoral Fund.