Owing to the partial funding of earnings-related pensions, pension providers are important investors and operators in the financial sector. By law, pension assets must be invested profitably and securely. The obligation is phrased slightly differently in the Acts concerning various pension providers, but the main rule is the same for everyone.

Provisions governing the investments of pension providers can be found in many Acts. The Act on Pension Insurance Companies regulates the investments made by pension insurance companies. The Acts on industry-wide pension funds and company pension funds contain their own provisions on investments made by these funds.

Apart from legislation, the earnings-related pension insurers’ activities are steered by various recommendations and principles. Some of these are common for the whole sector while others pertain to individual actors’ own operations. The guidelines on the prevention and investigation of money laundering and the financing of terrorism are common for the whole sector.

Each earnings-related pension insurer defines its own investment and ownership policy independently. All earnings-related pension insurers also have their own procedures and principles for assessing and reviewing the responsibility of investments. Responsible investment is an important element of pension insurers’ investments. It is therefore up to each actor to define the associated policies.

More detailed information on the policies of earnings-related pension providers in terms of responsibility and ownership steering is available on the websites and in the financial statements of each pension provider.

The regulations concerning the solvency of pension providers also set conditions for investments. The regulations on solvency are described in more detail on the pages Liabilities and Solvency.

The regulation of financial operators has become considerably more stringent since the financial crisis of 2008. This applies, in particular, to the EU, because the crisis gave rise to vigorous demands to intensify regulation and supervision especially at the EU level. It could even be said that there has been a flood of legal provisions. The European Union’s regulation of the financial markets also has an impact on corporations that invest pension assets. Finland must therefore see to it that the EU regulation does not cause unjustified additional costs to the earnings-related pension system and that it does not diminish pension providers’ possibilities of managing the investment of pension assets in the optimal way for securing these assets.