In accordance with OP Corporate Bank plc’s Articles of Association, a General Meeting shall elect an audit firm certified by Finland Chamber of Commerce to act as the company’s auditor. The auditors’ term of office is the financial year during which they were elected, ending upon the closing of the Annual General Meeting following their election.
The Audit Committee of the Supervisory Board of OP Cooperative, OP Corporate Bank plc’s parent entity, puts audit services out to tender at some five years’ interval (last time in 2018) on the basis of which it proposes eligible auditors to OP Cooperative’s Annual Cooperative Meeting to act as auditors for the entire OP Cooperative Consolidated. The Supervisory Board’s Audit Committee annually assesses the quality of the auditor’s performance and ancillary services and the independence of auditors and the statement of the ancillary services.
The auditors are tasked with auditing the accounting, internal control, accounting policies, management accounting judgements, presentation and structure of the financial statements of the company and its entities in order to obtain assurance that the financial statements of the Group and its entities have been prepared in compliance with the rules and regulations in force governing the preparation of financial statements and give the company’s shareholders and other stakeholders a true and fair view of the financial position, financial performance and cash flows of the Group.
The auditors give the Annual General Meeting an Auditor’s Report every year. Every year, the auditors submit to the Supervisory Board's Audit Committee an additional report, based on the EU Audit Regulation, where they confirm their independence, among other things. Based on their observations, they shall also draw up audit memoranda delivered to OP Corporate Bank plc’s Board of Directors, President and CEO, Internal Audit and the Financial Supervisory Authority. Whenever necessary, auditors also issue oral reports to the aforementioned persons and bodies.
The Board of Directors consults the auditor when dealing with the annual accounts and interim accounts, as well as the accounting policies. The auditors have a statutory obligation to notify the Financial Supervisory Authority of any matters or decisions that put operations and the existence of licence requirements at risk, or that result in an opinion in the Auditor’s Report other than the unqualified opinion, as referred to in the Auditing Act, or result in an auditors’ remark as referred to in Chapter 3, Section 5 and Paragraph 4 of the Auditing Act.
The auditor’s remuneration is payable based on the reasonable invoice amount presented.
Supervision by the central cooperative
OP Corporate Bank belongs to the amalgamation of deposit banks, under applicable laws. The amalgamation comprises OP Cooperative as the central cooperative together with its member credit institutions and financial institutions and service companies over which they exercise control. OP Cooperative controls the amalgamation’s operations and provides the companies within the amalgamation with guidelines on the qualitative requirements for safeguarding their liquidity and capital adequacy, as well as guidelines for their risk management, good corporate governance and internal control. The central cooperative may also confirm general principles to be followed by the member credit institutions in operations relevant to the amalgamation.
In addition, the central cooperative supervises its member credit institutions in the manner as referred to in the Act on the Amalgamation of Deposit Banks. In its operations, the Group takes account of OP Financial Group’s strategy, confirmed by OP Cooperative’s Supervisory Board, and regulations and guidelines on risk management and other operations issued by OP Cooperative to the member banks. The Group reports to OP Cooperative in a separately agreed manner.
The Group is supervised by the Financial Supervisory Authority and the ECB as prescribed in the laws governing financial and insurance markets. The company’s operations in Estonia, Latvia and Lithuania are supervised when applicable by the respective national regulators.