Translation

AMENDMENT ACT OF THE GOVERNMENT OF THE REPUBLIC ACT AND THE BANK OF ESTONIA ACT

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The following amendments are made in the Bank of Estonia Act (RT I 1993, 28, 498; 30, correction notice; 1994, 30, 463; 1998, 64/65, 1006; 1999, 16, 271):

§ 3. Subsection 5 of section 2 is amended and worded as follows:

"(5) In order to guarantee financial stability the Bank of Estonia shall co-operate with the Financial Supervision Authority. The Bank of Estonia has the right to receive from the Financial Supervision Authority the necessary data for fulfilling its tasks."

§ 4. Section 41 is added to the Act in the following wording:

"§ 41. Financial Supervision Authority

1. Founded as an authority with the Bank of Estonia the Financial Supervision Authority operates based on law.
2. The Financial Supervision Authority has autonomous authority in carrying out state financial supervision, it has its own management bodies, budget and reporting.
3. The Financial Supervision Authority has the right to receive from the Bank of Estonia the necessary data for fulfilling its tasks."

§ 5. Section 9:

1. Clause 3 of subsection 2 of section 9 is repealed;
2. Clause 4 of subsection 2 of section 9 is amended and worded as follows:

"4) Appointing and dismissing the Deputy Governors, members of the Executive Management, Chief Accountant, Managers of independent subsidiary undertakings and representative offices of the Bank of Estonia, as well as appointing and dismissing of members of Supervisory Council of the Financial Supervision Authority by the proposal of the Governor of the Bank of Estonia.;";

3. the words "Banking Supervision and other" are omitted from clause 6 of subsection 2 of section 9.

§ 6. Clause 6 of subsection 1 of section 11 is amended and worded as follows:

"6) Making proposals to the Board of the Bank of Estonia for nominating candidates for the positions of Deputy Governors, , members of the Executive Board, Chief Accountant, Managers of independent subsidiary undertakings and for their dismissal, as well as for nominating and dismissing members of Supervisory Council of the Financial Supervision Authority."

§ 7. Subsection 4 of section 15, sections 17, 18, 20, subsections 2 and 3 of section 21, and sections 22 and 24 are repealed.

§ 8. Section 31:

1. Subsection 11 is added to section 31 in the following wording:

"(11) The auditor of the Bank of Estonia shall audit the profit and loss statement of the Financial Supervision Authority.";

2. A sentence shall be added to Subsection 3 in the following wording:

"Simultaneously with the Annual Report of the Bank of Estonia, the Annual Report of the Financial Supervision Authority approved by the Supervisory Council of the Financial Supervision Authority shall be submitted to Riigikogu."

§ 9. Section 33:

1. Subsection 2 of Section 33 is repealed;
2. The second sentence is omitted from subsection 3 of section 33.

§ 10. This Act enters into force on 1 January 2002.