Corporate Governance in Finland 16 CORPORATE GOVERNANCE IN FINLAND Securities Market Association In December 2006, the Finland Chamber of Commerce, the Confederation of Finnish Industries EK, and OMX Nordic Exchange Helsinki Oy established a cooperation body, the Securities Market Association (www.cgfinland.fi). The goal of the association is to ensure, through more efficient selfregulation, that companies operating in the securities market observe uniform and transparent operating principles and rules. The mission of the association is to promote good corporate governance. The Finnish Corporate Governance Code 2010 The Securities Market Association has issued the new Finnish Corporate Governance Code on 15 June 2010. The Code became effective on 1 October 2010. The revisions of the Code were prepared by a Corporate Governance working group appointed by the Board of the Securities Market Association. The task of the working group was to make the necessary changes to the Code, due to international development of directors’ remuneration. The new Corporate Governance Code replaces the Finnish Corporate Governance Code issued in October 2008. The new Code defines the general goals of remuneration schemes and emphasises transparency on remuneration practices. Thus listed companies can take into consideration the company situation and development stage in their remuneration schemes in the best possible manner. Transparency and the presentation of information in a unified manner further improves the opportunities of investors to assess the appropriateness of the remuneration schemes of listed companies and the relationship between remuneration and the reaching of goals. Open access to information on remuneration also facilitates the comparison of remuneration practices between different listed companies. The Code is to encourage Finnish listed companies to apply corporate governance practices that are of a high international standard. The Code harmonises the practices of listed companies as well as the information given to shareholders and other investors. It also improves the transparency of administrative bodies, management remuneration and remuneration systems. The Code also provides an overall picture of the main principles of the corporate governance system of Finnish listed companies. History The first Corporate Governance Recommendation in Finland was issued in 1997 by the Finland Chamber of Commerce and the Confederation of Finnish Industry and Employers (nowadays the Confederation of Finnish Industries EK). The Corporate Governance Recommendation for Listed Companies was issued by the Finland Chamber of Commerce, Hex Plc (nowadays OMX Nordic Exchange Group Oy) and the Confederation of Finnish Industry and Employers in December 2003. The Board of the Securities Market Association approved the Finnish Corporate Governance Code in October 2008 and its updated version in June 2012. Corporate Governance in the Nordic Countries In April 2009 self-regulatory bodies of the Nordic Countries published a presentation called Corporate Governance in the Nordic Countries. Its aim is to inform international investors and other market participants of the key elements of the Nordic corporate Governance, and thereby to increase knowledge of and confidence on the Nordic corporate governance models. More information can be found at www.cgfinland.fi. Corporate Governance of Unlisted Companies The Board of Directors of the Finland Chamber of Commerce issued in January 2006 an Agenda for Improving Corporate Governance of Unlisted
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