FI’s mandate is to supervise the financial sector to ensure firms are compliant with the rules and the sector is functioning well. The financial market is large and complex, and we have limited resources. We cannot be everywhere, all the time. One condition for us to be able to carry out our mandate is that we conduct what we call effective and communicative supervision.
Effective supervision means that we apply a risk-based approach to our work and direct our resources to where we consider they will provide most benefit. We analyse where the largest risks are in each area and direct our efforts there. We follow, monitor, review and intervene.
Communicative supervision means that it should be clear what expectations and demands we place on the firms under our supervision as well as what consequences firms can expect if they do not comply with the rules. Our communication can also enable us to increase consumer knowledge and give consumers tools to make smart financial decisions based on solid grounds.
We use the risk-based method of working to identify a number of areas and risks that we will look more closely at during the coming year. These areas are important for our mandate, and we also see a need for more supervision than normal in these areas.
We must also be prepared to re-prioritise our resources to handle unexpected events.