The General Meeting elects an audit firm chartered by the Finnish Patent and Registration Office to act as the auditor.
The Audit Committee of the Supervisory Board of OP Cooperative, OP MB’s parent institution, 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 in order to obtain assurance that the financial statements 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 company.
KPMG Oy Ab, an audit firm, acted as the company’s auditor in 2019, with Tiia Kataja, APA, acting as the chief auditor, appointed by KPMG Oy Ab. KPMG Oy Ab has acted as the company’s auditor since 2002 and Tiia Kataja, APA, as chief auditor since 2019.
OP MB has used KPMG Oy Ab’s advisory services related mainly to the comfort letters of bond programmes and tax counselling.
In 2019, audit fees for audit paid to auditors totalled EUR 20,460 (12,133), whereas fees for assignments as referred to in chapter 1, section 1, sub-section 1, paragraph 2 of the Auditing Act were EUR 0 (0), those for tax counselling EUR 0 (0) and for other services EUR 82,584 (69,061). The corresponding figures for 2018 are shown in brackets. Non-audit services rendered by KPMG Oy Ab totalled EUR 62,500 (excl. VAT).
Supervision by the central cooperative
OP MB 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, OP Cooperative supervises the operations of its member credit institutions in the manner as referred to in the Act on the Amalgamation of Deposit Banks. In its operations, the company 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 company reports to OP Cooperative in a separately agreed manner.
As part of OP Financial Group, the company is supervised by the Financial Supervisory Authority and the European Central Bank as prescribed in the laws governing financial and insurance markets.