FIN-FSA appoints authorised representative to Elo
Elo Mutual Pension Insurance Company has on 11 December 2020 received a decision from the Financial Supervisory Authority (FIN-FSA) regarding the letter of hearing submitted to Elo by the FIN-FSA on 30 September 2020 and the FIN-FSA’s suggestion of appointing an authorised representative for Elo. The letter of hearing is related to the exceptional economic crisis of spring 2020 and the situation regarding Elo’s solvency position at the time. The FIN-FSA requested a report on Elo’s actions and decision-making criteria in the challenging economic environment of the coronavirus spring. Elo submitted its response to the letter of hearing on 30 October 2020.
The FIN-FSA has decided to appoint an authorised representative for Elo. The designated representative is Pekka Jaatinen, Attorney, LLM. Jaatinen will start in his position on 14 December 2020. The authorised representative will supervise Elo’s operations and act as a representative of the FIN-FSA in the meetings of the Board of Directors and the executive group, but he will not take part in decision-making.
The coronavirus crisis caused an unprecedented decline in share prices in the spring of 2020, causing Elo’s solvency position to breach the solvency limit for one day. The situation was corrected quickly, and Elo’s solvency position has improved significantly since then.
“Elo has already taken a number of actions which have strengthened and will continue to strengthen the capabilities and expertise of the company’s management. We warmly welcome Attorney Jaatinen. I believe that our cooperation will be productive,” says Satu Huber, Elo’s CEO.
The FIN-FSA’s decision does not require any actions by the company's customers, and the decision does not affect the insurance cover provided by the company. The appointment of the AR will not affect Elo´s day-to-day investment or other business operations. The insurance policies and pensions of Elo’s customers are well taken care of. The FIN-FSA will reassess the necessity of an authorised representative at the latest in June 2021.
More information:
CEO Satu Huber, tel. +358 20 703 5811
Updated on 16 December 2020 and 21 January 2021