FINLAND Law and Practice Contributed by: Olli Kiuru, Mia Rintasalo and Essi Hietaoja, Waselius
7.3 Regulatory Distinction Between Funds and Dealers Algorithmic trading is regulated under Chapter 7a of the ISA, according to which the provisions on algorithmic trading apply to all trading par - ties. Trading parties are defined as investment service providers or other persons authorised by a stock exchange or a multilateral trading opera - tor to trade on the trading platform in question. Chapter 7a of the ISA does not contain any dis - tinction between funds and dealers. 7.4 Regulation of Programmers and Programming As far as is known, no regulation is imposed upon programmers and programming at present. Industry participants must comply with the gen - eral principles of insurance regulation and good insurance practice in their underwriting process - es. For instance, pursuant to general principles of risk selection in insurance drawn up by FFI, no group of people may be placed in an unequal or inferior position due to their gender, race, ethnic - ity, religion, conviction, disability, age or sexual orientation. There are, however, acceptable rea - sons for treating different groups of people in a different manner. 8.2 Treatment of Different Types of Insurance In Finland, insurance providers are generally regulated under the Insurance Companies Act (521/2008), which provides the legal frame - work for the operation of life and non-life insur - ance companies. The Insurance Contracts Act (543/1994) and the Act on Insurance Distribution (234/2018) also apply. However, life insurance 8. Insurtech 8.1 Underwriting Processes
companies are subject to further regulation, as specified in the aforementioned legislation, in relation to their investments, with which they have to comply. There is also separate legisla - tion in place for transport insurance and work - ers’ compensation. In significant contrast to the general approach at the EU level, non-life insurance companies are also fully subject to anti-money laundering legislation in Finland, so have to comply with all the requirements set out in the Finnish AML regime as obliged entities. 9. Regtech 9.1 Regulation of Regtech Providers There is no specific regulation regarding regtech companies; the decisive factor in respect of reg - ulation is the services that they provide. 9.2 Contractual Terms to Assure Performance and Accuracy The Digital Operational Resilience Act (EU) 2022/2554 (DORA) became applicable in Fin - land broadly to different kinds of ICT arrange - ments within the financial industry as of 17 Janu - ary 2025. Among other things, DORA regulates the key contractual provisions to be included in the contractual arrangements between financial entities and ICT third-party service providers. According to DORA, when negotiating contrac - tual arrangements, financial entities and ICT third-party service providers shall consider the use of standard contractual clauses developed by public authorities for specific services.
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