Castrén & Snellman strengthens its financial sector services – Hannu Huotilainen appointed as Co-Head of Financial Regulation

Hannu Huotilainen is specialised in complex legal and regulatory matters across the financial sector with a specific focus on regulatory frameworks governing the operations of credit institutions, investment service providers, fund management companies, alternative investment fund managers and payment service providers as well as various other financial market participants operating in the banking and capital markets sector. He has a wide experience in assisting regulated entities in strategic issues and in numerous transactions in the financial sector.

Partner Janne Lauha, who will be co-heading the service with Hannu, says:

I look forward to co-leading the service with someone as knowledgeable and experienced as Hannu. Our clients have praised Hannu for his unique ability provide clear and solution-oriented answers to most complex legal issues as well as for his ability to create solutions that add value to clients. Hannu’s contribution will further strengthen our growth and our service to financial clients.

Hannu has been working on financial regulation issues for 15 years, including 10 years at Castrén & Snellman. In addition to providing extensive legal advice, during his career he has assisted clients in numerous regulated M&A transactions as well as fund structuring and fund formation projects. In recent years, Hannu has assisted, among others, asset management company Evli and Aktia Bank in various transactions in the asset management sector.

Castrén & Snellman’s Capital Markets and Financial Regulation team provides comprehensive solutions to financial sector companies, supporting the entire life cycle of a company. The legal advice includes assistance in starting a regulated business, developing products and services, as well as in relationships with customers, partners and regulatory authorities, and large-scale transactions in the financial sector. The team is a trusted advisor to credit institutions, investment firms, fund managers, payment service providers and insurance companies.

Our firm actively assists the financial sector with a comprehensive full-service offering, including legal advice relating to banking and finance, mergers and acquisitions, corporate governance, dispute resolution, data and technology as well as fund formations and fund investments.

Increasing regulation in the financial sector compels companies to adapt

The financial sector is already one of the most regulated in Europe, and the importance of regulatory knowledge and advice is becoming even more important. In the current and coming years alone, the sector will be subject to a significant number of reforms, both for the sector as a whole and for specific service providers.

The regulatory environment will continue to grow in volume and complexity. This evolution will challenge financial sector companies to continuously adapt and anticipate future changes in their strategic planning. The Castrén & Snellman team is renowned for its strong and broad expertise in advising the financial sector. We help companies achieve their commercial objectives while meeting their increasingly challenging regulatory obligations

Hannu Huotilainen, Co-Head of Financial Regulation

Regulatory reforms across the financial sector are part of the EU’s objectives to develop the EU’s internal market. The EU wants to increase the use of digital services, improve consumer protection in the digital environment, and take account of sustainability factors in the development and provision of services and products.

These objectives are being pursued in the financial sector through regulatory strategies such as “Digital Finance”, “Retail Investment”, and “Sustainable Finance” strategies. In addition to the regulatory frameworks that govern the sector at large, a number of service provider-specific reforms will enter into force in the coming years, such as the CRD6/CRR3 regulatory package updating the regulation of credit institutions, the PSD3/PSR regulatory package updating the provision of payment services, and the AIFMD II update updating the regulation of alternative investment funds.

The sector is consolidating, and business models are undergoing transformation

Changes in the regulatory environment often bring opportunities for new products, services and companies. However, in the financial sector, the extent and constant increase in regulation make the situation more difficult. Regulatory complexity and interpretative challenges are increasing. Significant regulatory changes may force financial sector companies to reassess and update their business models.

In addition to the wide range of business models that are already covered by financial regulation, the EU also tends to regulate all new products and business models entering the market sooner or later. This is likely to make it even more difficult for new entrants to enter the sector.

Huotilainen says:

From a regulatory development perspective, it is expected that alongside the ongoing consolidation in the financial sector, Finland will see an increasing number of strategic reorganisations such as mergers and acquisitions and various cooperation and outsourcing arrangements. These will help companies adapt to regulatory changes and strengthen their competitiveness in a changing environment.