Organisation

Corporate governance

Responsible business conduct is included in the mission statement of MuniFin: its operations must be socially, economically and environmentally sustainable.

MuniFin’s operations are governed by EU-level regulations, as well as Finnish acts and decrees applicable to credit institutions. Besides legislation, MuniFin complies with the regulations and guidelines issued by European authorities and the Finnish Financial Supervisory Authority (FIN-FSA). Furthermore, where applicable, MuniFin also complies with the Governance Code of Nasdaq Helsinki for listed companies.

Since 1 January 2016, MuniFin has been under the direct supervision of the European Central Bank (ECB). The corporate governance requirements of the banking supervision are strict, and meeting them provides an excellent foundation for MuniFin’s operations.

More resources to fulfil the requirements of good governance

In 2018, MuniFin placed special emphasis on developing further its governance structure. Up until 2018 the internal audit function was outsourced to an external third party but during 2018 the company restructured its audit operations and the Board of Directors appointed a Senior Vice President responsible for internal auditing function. The Senior Vice President of internal auditing reports directly to the Audit Committee and the Board of Directors. In addition the compliance function was further strengthened.

The Board of Directors of Municipality Finance is responsible for preparing MuniFin’s risk management policies. MuniFin’s risk management framework covers, for example, the market risk policy, credit risk policy, the risk policies for liquidity management and funding, the policy for operative risks, and the risk appetite framework. Strict limits and limit values have been set for different types of risks, and MuniFin fully intends to adhere to them. Any and all breaches of risk limits will be addressed immediately.

Responsibility Policy guides operations

The leading principle in the work of MuniFin’s employees is to ensure that all operations are conducted in a responsible way. The company’s operations are guided by Responsibility Policy, which offers guidelines for the principles of responsibility and helps identify any conflicts of interest. In 2018, the whole of MuniFin staff participated in Responsibility Policy training and had to pass a web-based test on the policy.

MuniFin’s website includes a whistleblowing channel that can be used to report any suspicions of misconduct, also anonymously, if necessary.

Board of Directors

According to the company’s Articles of Association, the Board of Directors has a minimum of five and a maximum of eight members. The Annual General Meeting elects the members of the Board, and each member’s term of office terminates at the end of the next AGM. In accordance with the proposal of the Shareholders’ Nomination Committee, the 2018 Annual General Meeting elected the following persons to the Board of Directors for the 2018–2019 term (from the end of the AGM to the end of the next AGM):

Helena Walldén, 1953

Chairperson of the Board of Directors
Chairperson of the Board of Directors since 2016

Education: M.Sc. (Eng)

Primary occupation: Board professional

Other key positions of trust:

Independence: Independent of the company and its significant shareholders

Tuula Saxholm, 1961

Vice Chairperson of the Board of Directors
Member of the Board of Directors since 2013

Education: M.Sc. (Econ.)

Primary occupation: Finance Director, City of Helsinki

Other key positions of trust: Helsinki Metropolia University of Applied Sciences, member of the Board of Directors; Helsingin kaupungin asunnot Oy, member of the Board of Directors; Helsingin Leijona Oy, member of the Board of Directors; Port of Helsinki, member of the Board of Directors; chairperson of the Board of Directors of the City Financial Administration Services Corporation; Pääkaupunkiseudun Junakalusto Oy, chairperson of the Board of Directors; HYKSin kliiniset palvelut Oy, member of the Board of Directors

Independence: Non-independent of the company (employed by a significant customer)

Fredrik Forssell, 1968

Member of the Board of Directors since 2011

Education: M.Sc. (Econ.)

Primary occupation: CIO, Internal equity & FI, Keva

Other key positions of trust:

Independence: Independent of the company

Minna Helppi, 1967

Member of the Board of Directors since 2017

Education: M.Sc. (Econ.)

Primary occupation: SVP Group Treasurer, Metso Corporation

Other key positions of trust: Rauma Oy, chairperson of the Board of Directors

Independence: Independent of the company and its significant shareholders

Markku Koponen, 1957

Member of the Board of Directors since 2018

Education: Master of Laws with court training, EMBA

Primary occupation: Board professional

Other key positions of trust: Kiinteistö Oy Opetustalo, vice chairperson of the Board of Directors

Independence: Independent of the company and its significant shareholders

Jari Koskinen, 1960

Member of the Board of Directors since 2017

Education: M.A. (Pol.Sc.)

Primary occupation: Director General, Association of Finnish Local and Regional Authorities (until February 2019)

Other key positions of trust: Finnish Wooden Tall Buildings, member of the Board of Directors

Independence: Independent of the company and its significant shareholders

Kari Laukkanen, 1964

Member of the Board of Directors since 2018

Education: M.Sc. (Econ.)

Primary occupation: Board professional and independent consultant

Other key positions of trust: Bankify Oy, member of the Board of Directors; Nuori Yrittäjyys ry, member of the Board of Directors

Independence: Independent of the company and its significant shareholders

Vivi Marttila, 1966

Member of the Board of Directors since 2016

Education: M.Sc. (Econ.)

Primary occupation: Mayor of the municipality of Simo

Other key positions of trust: LocalTapiola Lappi Mutual Insurance Company, board member

Independence: Independent of the company and its significant shareholders

Executive Management Team

The company has a CEO appointed by the Board of Directors and a Deputy to the CEO. The CEO’s duty is to manage the company’s operations in order to implement the resolutions made by the Board of Directors and maintain operations in line with the strategy, risk management principles and limits set by the Board of Directors. Supported by the Executive Management Team, the CEO is responsible for monitoring the effectiveness of the company’s day-to-day operations (including internal control, risk management and supervision of regulatory compliance), maintaining an effective organisational structure and reporting to the Board of Directors.

Esa Kallio, 1963

President and CEO

At Municipality Finance since 2005

Education: M.Sc. (Econ.)

Toni Heikkilä, 1965

Executive Vice President,
CRO, Risk Management

At Municipality Finance since 1997

Education: M.Sc. (Finance)

Jukka Helminen, 1964

Executive Vice President,
Customer Finance

At Municipality Finance since 2013

Education: M.Sc. (Eng.)

Rainer Holm, 1973

Executive Vice President,
Business Information Solutions

At Municipality Finance since 2016

Education: M.Sc. (Econ.)

Joakim Holmström, 1977

Executive Vice President,
Capital Markets

At Municipality Finance since 2008

Education: M.Sc. (Econ.)

Marjo Tomminen, 1962

Executive Vice President,
CFO, Finance

At Municipality Finance since 1992

Education: Vocational Qualification in Business and Administration MTT, EMBA

Mari Tyster, 1975

Executive Vice President, Legal and Governance,
Deputy to the CEO

At Municipality Finance since 2009

Education: Master of Laws