Aggregated News From Investment Management Regulators

Sweden

ESRB issues a recommendation on vulnerabilities in the commercial real estate sector

The European Systemic Risk Board (ESRB), the EU’s macroprudential overseer, has issued a general recommendation on risks linked to vulnerabilities in the commercial real estate (CRE) markets in the EU, Iceland, Liechtenstein and Norway. The recommendation calls for improved monitoring of such risks to the financial system, along with both micro- and macroprudential policy measures to address identified vulnerabilities where necessary. The ESRB's analysis indicates the presence of risks in the CRE sector that could impact both the financial system and the real economy should they materialise. The ESRB assesses that the sector is vulnerable to risks related to the...

Large increase in suspected cases of investment fraud in 2022

Despite the contracting economy and the uncertainty in both the Swedish economy and the world in general, investment fraud was on the rise last year. In 2022, FI issued 3,471 warnings – 25 per cent more than in 2021. One new observation during the year is that fraudsters more frequently demand payment in bitcoin to avoid detection. Fraudsters use every method possible to create a reliable façade in order to hide their fraudulent activities. They then take the money that consumers believe is being invested in secure, profitable assets and divert it to their own pockets. During the year, FI...

Correction of TRS 2 validation

All submitting entities that received incorrect validations with error codes CON-070 and CON-160 may now resend the incorrectly rejected transactions. Starting around 26 October, the Buyer and Seller LEI have been wrongly validated at times, which has resulted in the error codes CON-070 and CON-160 being issued incorrectly. The error is now corrected, and we therefore request that all affected submitting entities resend the incorrectly rejected transactions. This news item was originally published by the Swedish Financial Supervisory Authority (FI SE). For more information, please see the Source Link.

New design

We have updated the design of our start page and several other pages. Much of the content on the pages has stayed the same, but some things have been given a new name and location. What is new? Choose between five most interesting topics right now. Previously we had links to various services at the top of the page, and we have now taken away several of these links. The Forms, Authorisation and Reporting links have been moved under E-services and forms, which now leads to all of our log-in e-services and forms. We also changed the appearance and location of the shortcuts. This news item...

Authorisation as an administrator of STIBOR – FI assesses that the application is complete

Swedish Financial Benchmark Facility AB 's (SFBF) application to become an authorised administrator of STIBOR in accordance with the EU’s Benchmark Regulation (BMR) has of 2 January 2023 been assessed to be complete. SFBF provides the benchmark STIBOR (Stockholm Interbank Offered Rate), which is a critical reference rate according to the BMR. SFBF submitted an application to Finansinspektionen (FI) on 27 December 2021 to become an authorised administrator in accordance with the BMR. FI now assesses the application to be complete. FI shall examine the application for authorisation and adopt a decision to authorise or refuse to authorise SFBF within...

Greatest risk for repayment problems at so-called instant loan firms

One out of six who borrow from a consumer credit institution, previously called instant loan firms, receives a collection notice. Among all lenders, one out of five unsecured loans was approved for a person who does not have any money left after paying their monthly subsistence costs. Given the expected economic development – high inflation and higher interest rates – this percentage could increase to every third borrower. All of these observations indicate that credit assessments are insufficient. This is the conclusion of a consumer credit survey that FI is presenting today. This is the fifth time FI has conducted...

FI maintains level of systemic risk buffer for major banks

The three major banks, SEB, Handelsbanken and Swedbank, will continue to maintain a systemic risk buffer of 3 per cent at group level. This decision was made following FI’s biennial review of the systemic risk buffer in accordance with the European Capital Requirements Directive. The last decision passed by FI on the level of the systemic risk buffer for the three major Swedish banks was from 29 December 2020. FI decided at that time that the banks needed to maintain a systemic risk buffer of 3 per cent at group level. FI has now completed a new assessment of the arguments...

Länsförsäkringar Bank is issued a remark and must pay administrative fine

Länsförsäkringar Bank has been deficient in its work to prevent money laundering and terrorist financing. The bank is therefore being issued a remark and must pay an administrative fine of SEK 90 million. Finansinspektionen (FI) has investigated whether Länsförsäkringar Bank has complied with the rules in the anti-money laundering regulations. According to these rules, the bank must monitor its ongoing business relationships and individual transactions and report any suspected money laundering and terrorist financing to the Swedish Police Authority. The investigation shows that Länsförsäkringar Bank has been deficient in its compliance with the rules to identify deviant activities and transactions that...

A strategy to prevent greenwashing

Finansinspektionen will prevent greenwashing in the financial sector through preventive measures and supervisory activities. Today, in a new report that is submitted to the government, FI presents a strategy to prevent greenwashing. "Preventing greenwashing is a prioritised area for FI. We need to both guide market participants in order to prevent problems from arising and use targeted supervisory activities when necessary," says FI's Head of Sustainability Johanna Fager Wettergren. As part of its ongoing supervision, FI will work with different issues related to greenwashing, for example how individual financial companies designs their pre-contractual information for sustainable financial products or if sustainability-related...

Therese Östling Waller new HR director

Therese Östling Waller is currently the HR manager at SVT. Therese has extensive experience within HR, including from the Swedish Public Employment Service, where she was head of the HR department for several years. Therese Östling Waller will take over as HR director on 23 January 2023 and will be a member of FI's management group. This news item was originally published by the Swedish Financial Supervisory Authority (FI SE). For more information, please see the Source Link.

Macro-based stress tests of Swedish banks: results and method, Autumn 2022

Major Swedish banks demonstrate considerable resilience in the stress test Finansinspektionen (FI) conducted in 2022. The test identifies the potential effects on the five largest Swedish banks’ financial positions when interest rates and inflation increase. This memorandum (only available in Swedish) describes the method behind the stress test and its results. The results of the stress test show that the banks are significantly resilient to a decrease in earnings and the credit losses that could arise in a severe scenario. On average, the common equity Tier 1 capital ratio decreases by roughly 2 percentage points. The banks' average management buffers –...

Financial stability risks are increasing on the back of rising interest rates and a weakening economy

Rising interest rates, decreased risk-taking and a slowing economy are weighing on highly indebted commercial real estate firms and households. The rapid transition to higher interest rates and a decreased willingness to take risk means financial stability risks have increased since spring. At the same time, this transition may lead to lower risk-taking and indebtedness in the long run, thus lowering stability risks. High inflation, rising interest rates and a weaker economic development have meant that financial market participants have been less willing to take on risk. The ongoing war in Ukraine creates additional uncertainty that is impacting financial markets...

Regulator Information

Abbreviation: FI
Jurisdiction: Sweden

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