Aggregated News From Investment Management Regulators

Sweden

FI investigates IT incident at Klarna

FI will investigate whether Klarna violated its duty of confidentiality in conjunction with an IT incident in May when the bank’s customers were able for a limited time to access information about one another. This matter will be added to the investigation that FI has already opened into Klarna’s work with information and cyber security. The duty of confidentiality is a central pillar in banks' operations. Bank customers should know that their information is secure, and banks are faced with the major task of always protecting their customers' integrity. On 27 May 2021, an IT incident occurred at Klarna during which...

FI reciprocates Norwegian risk weight floor

Finansinspektionen has passed a decision to reciprocate the Norwegian Ministry of Finance’s decision to implement an average risk weight floor of 20 per cent for retail exposures collateralised by real estate in Norway and of 35 per cent for corporate exposures collateralised by real estate in Norway. FI's decision applies as of 30 September 2021 for Swedish credit institutions that have branches or other exposures in Norway and are authorised to use an internal ratings-based approach for the calculation of their capital requirement for credit risks. FI will apply the threshold of NOK 32.3 billion for retail exposures collateralised by real...

Macroprudential measures subdue household loans

The mortgage cap and amortisation requirements have had intended effect and subdued household debt. They are slowing a scenario where new mortgagors borrow more, taking larger loans in relation to the value of the home or their income. These are the conclusions of Finansinspektionen’s (FI) evaluation of the macroprudential measures implemented in Sweden. In the 2021 Letter of Appropriation, FI was given a mandate to carry out and report on an overall assessment of the borrower-based macroprudential measures. These include stricter capital requirements on banks, the mortgage cap, and two amortisation requirements. In the past few years, extremely low interest rates...

Maiden Life receives warning and administrative fine

Finansinspektionen (FI) is issuing Maiden Life Försäkrings AB a warning. The company must also pay an administrative fine of SEK 5.5 million. FI's investigation shows that the company has not followed the requirement of having its head office in Sweden, i.e., the country where it is authorised and where the main responsibility for the supervision lies. The company has also not fulfilled requirements regarding outsourced operations, independence in key functions, conflicts of interest and sound and prudent management. Several of the matters refer to severe violations that have been ongoing for a long period of time. There is therefore cause for...

Support measures can build up stability risks

The support measures have been important for offsetting the economic impact of the crisis and speeding up the recovery. However, they can also contribute to greater stability risks in the long run, concludes Finansinspektionen (FI) in this year’s first report on the stability in the financial system, which is being published today. The economic recovery is expected to pick up speed, in part because the reduced spread of the virus and vaccinations are making it possible to slowly phase out restrictions. But the road back to pre-pandemic levels is long; for example, unemployment is still high, writes FI in its...

FI leaves the countercyclical buffer rate unchanged

Finansinspektionen (FI) leaves the countercyclical buffer rate unchanged. The buffer rate of 0 per cent, which was applied starting on 16 March 2020, shall thus continue to apply. The countercyclical buffer guide is set at 1.6 per cent. In accordance with the Capital Buffers Act (2014:966), FI shall set a countercyclical buffer guide and a countercyclical buffer rate each quarter. This news item was originally published by the Swedish Financial Supervisory Authority (FI SE). For more information, please see the Source Link.

Capital requirements of Swedish banks as of Q1 2021

Finansinspektionen publishes the capital requirements of the largest Swedish banks and credit institutions that belong to supervisory categories 1 and 2 as of the end of Q1 2021. The capital requirements are published in order to illustrate the effect of Finansinspektionen's total capital requirement, including Pillar 2. Pillar 2 is a collective term for the rules that govern the firms' internal capital assessments and Finansinspektionen's supervisory review and evaluation process, of which Finansinspektionen's capital assessment forms an integral part. Finansinspektionen decided to strengthen the capital requirements in September 2014. The capital requirements are published for Sweden's three major banks, Handelsbanken, SEB...

Low income the greatest risk factor for loans leading to debt with the Swedish Enforcement Authority

One fifth of all debts with the Swedish Enforcement Authority come from loans. And people with low incomes run the greatest risk of suffering repayment problems. Repayment problems often start with life events such as unemployment or illness. This is shown by a new analysis from Finansinspektionen (FI), the Swedish Consumer Agency and the Swedish Enforcement Authority. This analysis is the first of its type and the authorities investigate how loans influence the risk of having financial difficulties. Repayment problems are divided up into different stages – early problems as repeated reminders and collection notices, and later problems as injunctions...

TRS2 Test environment will be closed 19 May

  On Wednesday, 19 May, the test environment of the TRS 2 system will be closed for maintenance.   It will still be possible to submit TR files, but feedback will not be sent until the maintenance has been completed. This news item was originally published by the Swedish Financial Supervisory Authority (FI SE). For more information, please see the Source Link.

Appointment of FI’s Director General has been extended

The Government has decided to extend Erik Thedéen’s employment as director general and head of Finansinspektionen by three years. Erik Thedéen's current appointment expires on 31 October 2021. The Government decided today to extend his appointment until 31 October 2024. Erik Thedéen became the director general of FI in 2015. This news item was originally published by the Swedish Financial Supervisory Authority (FI SE). For more information, please see the Source Link.

FI introduces new reporting system

FI has decided to replace several of our existing reporting systems with a new system with the aim of better meeting current and future legal requirements and enhancing user-friendliness for the companies that report via the systems. The new reporting system, FIDAC, will be used for both periodic and event-driven reporting. Initially, EU-regulated reporting for credit institutions and securities companies and the national quarterly reports for occupational pension undertakings will be reported via FIDAC. We describe below the rules that apply to the EU-regulated reporting for credit institutions and securities companies. Companies that must submit the national quarterly report for occupational...

New borrowers are taking larger mortgages

New borrowers are continuing to take larger mortgages in relation to their income and the value of their home, according to this year’s Swedish Mortgage Market, which is being presented today by Finansinspektionen (FI). FI also announces in the report that the temporary exemption from the amortisation requirement will end on 31 August. Webcast Presentation 10AM Digital Q&A for Media 10:30AM "The coronavirus pandemic caused a sharp economic downturn, but we are now seeing signs that that the economic recovery has begun. There was widespread uncertainty in 2020. Despite this, both housing prices and household debt continue to increase faster,"...

Regulator Information

Abbreviation: FI
Jurisdiction: Sweden

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