A stable, well-functioning financial market for allA stable, well-functioning financial market for allDerivatives trade (EMIR)
The EU Regulation governing OTC derivatives, central counterparties and transaction registers (EMIR) affects all firms that enter into any form of derivative contract – both financial and non-financial firms. Central counterparties and transaction registers must be authorised.
2018
The TRS 2 system is unable to create FD files at the moment
At the moment, Friday, 7 December, the TRS 2 system is unable to create FD files (daily feedback).
FI Analysis 14: Reference rates are changing
Reference rates are important since they are used in many financial contracts, and it is therefore crucial that they are fair, transparent and accurately reflect the underlying market.
Higher interest rates test resilience
Low interest rates have contributed to high risk-taking, rising asset prices and increasing debt. Higher interest rates in the next few years could reduce risk-taking and thus dampen the build-up of risk. However, unexpectedly large interest rate fluctuations and uncertain global developments could also test the financial sector’s resilience. These are some of the conclusions Finansinspektionen (FI) draws in this year’s second report on the stability in the financial system. The report will be presented at a press conference today.
Stability in the Financial System (2018:2)
The economy continues to be strong, both in Sweden and globally, but it is now showing signs of a slow-down. Interest rates have been low for a long period of time, which has led to high risk-taking and rising asset prices. As a result, the risks in the financial system are elevated. The resilience in the Swedish financial system is satisfactory in general but continued high growth in debt fuelled by lending and investments related to residential property and commercial real estate require monitoring.
TRS 2 upgraded to a new system version
On Monday, 26 November, TRS 2 was upgraded to a new system version.
Klas Granlund: Brexit, positive progression not a reason to stop preparations
Despite the positive progression over the past few weeks, there is still some uncertainty surrounding Brexit. FI has previously identified the limited access to clearing services as one of the consequences of Brexit that could have a major impact on Swedish firms. The European Commission’s communication that it will take action to manage risks to financial stability that are associated with clearing is therefore welcomed. At the same time, though, a hard Brexit could create other types of frictions that affect Swedish firms. It is therefore of utmost importance that Swedish firms continue to prepare for Brexit.
Extended system maintenance in TRS 2 system
FI is extending the ongoing maintenance and upgrade of the production environment in the TRS2 system until further notice.
Work with sustainability is progressing – but there is still much to be done
FI is publishing today three reports on sustainability. The reports show that the work with sustainability is progressing on several fronts and that the industry’s own initiatives, where relevant, are working. But there is still a lot of work left to be done. FI is also publishing a follow-up report for the Government on FI's work with sustainability-related matters in 2018.
Integration of sustainability in corporate governance
Sustainability-related risks and opportunities do not differ from the other risks and opportunities that can be linked to financial firms’ operations. Therefore, sustainability should not be managed in limited areas of corporate governance, but rather be an integral part of corporate governance as a whole. In this survey, FI studied how financial firms describe their management of sustainability aspects in corporate governance and how these aspects are integrated into the operations.
Finansinspektionen’s work in 2018 to contribute to sustainable development
FI has conducted a number of supervision activities related to sustainability at the same time as the organisation has been partly restructured and received additional resources. During the year, FI's work has focused on integrating sustainability-related matters into its ongoing supervision, a project that will continue and be intensified.
The Network for Greening the Financial System has published its first report
The members of the international Network for Greening the Financial System (NGFS) acknowledge in their first report that climate-related risks are a source of financial risk. The Network therefore clarifies that it is within the mandates of central banks and supervisors to ensure the financial system is resilient to climate-related risks.
IOSCO creates a sustainable finance network chaired by Erik Thedéen
The International Organization of Securities Commissions (IOSCO) decided today to create a Sustainable Finance Network (SFN).
Finansinspektionen follows closely the developments at Nasdaq Clearing
Finansinspektionen has an ongoing dialogue with Nasdaq Clearing given that the company decided to declare a member in the firm’s commodity market in default. Finansinspektionen is also in contact with other affected authorities and organisations.
FI's comments on Nasdaq Clearing's decision today
Nasdaq Clearing AB has decided to declare a clearing member in the firm’s commodity market in default. The member is active in the electricity derivatives markets through trading on the Norwegian Stock Exchange, Nasdaq Oslo ASA. These financial instruments are centrally cleared in Nasdaq Clearing AB, a firm under Finansinspektionen’s (FI’s) supervision.
Proposal to change Finansinspektionenʼs Regulations (FFFS 2014:33) regarding the countercyclical buffer rate
Finansinspektionen proposes to raise the countercyclical buffer rate to 2,5 percent. The rate is currently at 2 percent. The change will be effective from the 19 September 2019.
ESMA on the exemption for pension scheme arrangements from the clearing obligation
The European Securities and Markets Authority (Esma) published on 3 July 2018 a statement on the exemption for pension scheme arrangements (PSAs) from the clearing obligation. The objective of the statement is to avoid, to the extent possible, disruption after 17 August 2018 when the current exemption for PSAs from the clearing obligation expires.
Esma publishes new information regarding the LEI requirements under MiFIR
ESMA published new information on 20 June 2018 regarding the LEI requirements under MiFIR. The publication confirms that the last day for the temporary period that was brought-in in December 2017 to allow for a smooth introduction of the LEI requirements will be 2 July 2018.
Operational disruptions in TRS 2 Production
On Wednesday, 27 June, there will be operational disturbances in the TRS2 production environment due to an upgrade to a new system version.
Changes in reporting of holdings
Finansinspektionen is making changes to the reporting of holdings for funds. The changes will go into effect in January 2019.The changes to the reporting aim to achieve more effective supervision of both individual funds and the fund market as a whole.
Consequences of Brexit for the Swedish financial market
Brexit will become a reality when the UK leaves the EU on 29 March 2019. This will change conditions for cross-border trade in financial services to and from the UK. FI describes in this report its analysis of a number of significant economic and legal aspects related to Brexit.
FI Supervision 5: Market Abuse 2017–2018
Over the past year, FI has primarily intervened against small-volume trading and ”wash trades” that were carried out deliberately or negligently by private individuals. The financial undertakings’ reporting plays a key role in FI’s possibilities for intervening against market abuse. FI’s cooperation with EBM has contributed to the development of this work. These are the three conclusions in FI’s report, Market Abuse 2017–2018.
Förlängt underhåll och driftstörningar i TRS 2 Produktion
On Friday, 8 June, the TRS 2 production environment will still be closed for maintenance.
Operational disruption in TRS 2 Production
On Thursday, 7 June, the TRS 2 production environment will be closed for maintenance.
Stability in the Financial System
The Swedish economy continues to be strong, and resilience in the financial system is satisfactory. However, a long period of low interest rates and strong growth has resulted in an elevated risk appetite, high asset prices and high debt globally, among Swedish households and on the commercial real estate market. The high level of indebtedness makes the financial sector more sensitive to shocks, and, if necessary, FI will take additional measures to strengthen the resilience.
Risks can build up when the economy is strong
The Swedish economy continues to be strong, and resilience in the financial system is satisfactory. However, a long period of low interest rates and strong growth has resulted in an elevated risk appetite, high asset prices and high debt. This makes the financial sector more sensitive to shocks, writes Finansinspektionen (FI) in the first Stability Report of the year, which is being presented today.
FI Supervision 4: Survey of Funds of Funds
FI has surveyed 25 funds of funds managed by 25 fund management companies and AIF managers. FI has scrutinised how the consumer is informed about fees and how the managers have reported their funds of funds’ objectives and performance.
Operational disruption in TRS 2 Production
On Thursday, 3 May, the TRS 2 production environment will experience operational disruptions due to an upgrade to a new system version.
FI Supervision 2: Audit supervision of public-interest entities
Pursuant to the Supervision of Public-Interest Entities (Audit) Act (2016:429), FI is responsible for conducting certain audit supervision activities. FI has conducted an investigation into this supervisory area in 2017. This report provides an overview of the investigation’s results and describes FI’s view on how the regulations can be applied.
Solidar Fonder AB receives a warning and an administrative fine
Finansinspektionen (FI) is issuing Solidar Fonder AB (Solidar) a warning. The company must also pay an administrative fine of SEK 10 million.
TRS 2 closed for maintenance
On Friday,13 April, TRS 2 will be closed for maintenance.
FI Supervision 1: Experiences from money laundering supervision 2016–2017
It is FI’s assessment that firms in general have a greater awareness of the regulations than in previous investigations and are committing more resources to their work to prevent money laundering. But more needs to be done.
Erik Thedéen re-elected Vice-Chair of IOSCO's European Regional Committee
Finansinspektionen's Director General Erik Thedéen has been re-elected as Vice-Chairman of the International Organization of Securities Commissions' (IOSCO) European Regional Committee (ERC) for the period 2018-2020.
FI updates information about periodic reporting required by the Anti-Money Laundering Act
FI has updated the instructions and FAQs about the periodic reporting firms under Finansinspektionen’s supervision are required to file according to the Anti-Money Laundering Act.
Videos about anti-money laundering now in English
FI has translated into English its educational videos about efforts to combat money laundering and terrorist financing.
New Nordic-Baltic Memorandum of Understanding
The Swedish Ministry of Finance, the Riksbank, Finansinspektionen (the Swedish Financial Supervisory Authority) and the Swedish National Debt Office in its role as resolution authority, have produced, together with their equivalents in Denmark, Estonia, Finland, Iceland, Latvia, Lithuania and Norway a new Memorandum of Understanding on cooperation and coordination on cross-border financial stability.
Erik Thedéen: Rules prevent crises
Finansinspektionen is responsible for macroprudential policy in Sweden, which includes both promoting financial stability and counteracting financial imbalances. We are also tasked with promoting a high level of consumer protection on the financial markets. One of the reasons that we have been given the responsibility for macroprudential policy is that financial crises have proven themselves to be very expensive.
First meeting of the Network for Greening the Financial System
The international Network for Greening the Financial System (NGFS) held its inaugural meeting in Paris last week.
Financial stability and macroprudential policy
Finansinspektionens Director General Erik Thedéens speech in the Standing Committee on Finance the 23 januari 2018.
Application of transparency rules in accordance with MiFID II/MiFIR for Swedish trading venues and investment firms
FI establishes its adaptation to the new transparency rules that will go into effect on 3 January 2018 in conjunction with the new European regulatory framework: the Directive and the Regulation on markets in financial instruments (MiFID II/MiFIR).
FI publishes supplementary transparency calculations for MiFIR/MiFID II
In accordance with the announcement published on 7 December 2017, FI has carried out supplementary transparency calculations for equity instruments and bonds admitted for trading on a Swedish trading venue in November and December 2017.
2017
AIFM reporting to Finansinspektionen
Finansinspektionen (FI) has identified common errors in the AIFM reporting. FI includes below a list of the most common errors as well as a description of how AIF-managers should fill in the rows in ESMA’s reporting forms.
ESMA and FI publish transparency calculations for MiFIR/MiFID II
ESMA, the European Securities and Markets Authority, has published transparency calculations for equities and bonds prior to the entry into force of MiFIR/MiFID II on 3 January 2018. FI will also publish some supplementary calculations.
FI establishes an innovation centre
FI is establishing a fintech innovation centre that will provide information to and maintain a dialogue with companies conducting innovation-based business. This centre and additional initiatives are presented in FI's report to the Government regarding an assignment.
Stability in the Financial System (2017:2)
The Swedish economy continues to be strong and interest rates are extremely low, which contributes to high asset prices and low risk premiums. As global interest rates rise in the future, there is a risk for an abrupt increase in risk premiums and a fall in asset prices, which could be stressful for the financial system.
Important information about transaction reporting in accordance with MiFID
The last trading date for transactions in financial instruments that must be reported to FI’s current transaction reporting system, TRS, is 2 January 2018. The TRS system will be open until 23:59 PM on 12 January 2018 to receive transactions and/or cancellations of transactions in accordance with MiFID with trading dates up to an including 2 January 2018.
Operational disruptions in the TRS 1 system
There will be operational disruptions in the TRS 1 system today, 20 November 2017. The disruptions affect rapporteurs submitting encrypted files.
Information about forthcoming periodic reporting in accordance with Finansinspektionen’s regulations FFFS 2017:11
On 1 August, the new Money Laundering Act entered into force as well as FI’s new regulations. According to these new regulations, firms under FI’s supervision must report data that enables FI to assess the risk that firms will be used for money laundering and the financing of terrorism.
Delayed publication of short-selling notification
Finansinspektionen was late with its publication of a short-selling notification from Coatue Management.
ESMA publishes reference data and instructions for downloading files
The European Securities and Markets Authority (ESMA) has published instructions on how to access the reference data that is covered by the MAR and MiFID II/MiFIR regulations. The EU authority has also published current reference data that is available for download.
FI:s response to the EU Consultation on FinTech: A more competitive and innovative European Financial Sector
Finansinspektionen has responded to the Commission Consultation Document on FinTech: A more competitive and innovative European Financial Sector.
New page about transaction reporting for MiFID2/MiFIR
A new webpage is now available with information about the transaction reporting required under MiFID 2/MiFIR.
Supervision of the Swedish Securities Market (2017)
In 2016, FI's analysis of trends and risks on the securities market focused on the subareas fixed income market, derivatives market and equity market.
Market abuse
Finansinspektionen (FI) monitors that the market complies with the Market Abuse Regulation (MAR).
FI’s view on automated investment advice
It is likely that automated services will play a greater role on the financial market. Finansinspektionen (FI) views an online market with simplified investment advice as a step in the right direction in terms of achieving an independent market for investment advice that reaches a wide number of consumers.
2016
A necessary step for a better savings market
FI believes that independent financial advice would play an important role on the savings market, since consumers are at an information disadvantage in relation to producers of saving products while at the same time having to take more responsibility for their financial future.
FI monitors developments as they unfold
Finansinspektionen is monitoring the developments following the EU referendum in the UK. We are continuing to maintain a dialogue with the Ministry of Finance, the Riksbank and the Swedish National Debt Office and keep close contact with the Swedish banks. FI always has contingency plans in place to take measures that will contribute to financial stability.
Notification of home Member State under the Transparency Directive
As of February of this year, new rules apply for how notification is made about a home Member State. This text provides a brief description of what the new rules entail.
Erik Thedéen named Vice-Chair of IOSCO's European Regional Committee
FI Director General Erik Thedéen has been named Vice-Chair of the International Organization of Securities Commissions' (IOSCO) European Regional Committee for the period 2016-2018.
Supervision of the Swedish securities market
FI is issuing its Securities Market Supervision Report for the second consecutive year. The report discusses the issues that FI currently considers to be most relevant. FI also describes in the report the developments on the Swedish securities market over the past year.
FI proposes partial waiver for covered bonds
Finansinspektionen proposes partial waiver from the requirements in Article 129 (1)(c) of the Capital Requirements Regulation (CRR) through a change in FI´s regulation (FFFS 2014:12) regarding prudential requirements and capital buffers.
New Rules for Notification of Changes in major shareholdings
An overview of some of the legislative amendments following the entry of the revised Transparency Directive (2013/50/EU) into Swedish law on 1 February 2016.
Trig Social Media breached accounting rules
Trig Social Media AB has, in an interim report, on a number of points neglected the provisions regarding periodic financial information. Finansinspektionen has therefore decided to issue the company with a caution for having breached the accounting rules.
2015
FI Analysis 3: Liquidity in the market for covered bonds
The market for covered bonds is important for bank funding and therefore financial stability. The requirements for banks to hold more capital and liquidity for their operations have been tightened since the financial crisis. These requirements affect the banks' costs of holding securities in the trading book and so their costs of acting as market makers.
Supervision of the securities market
Three key areas are the focus of FI's new report Supervision of the securities market; financial infrastructure, transparency on the securities market as well as new rules for market supervision and the enforcement of financial information.
2014
Reinhold Europe shall pay penalty fee for the failure to publish financial information
By a decision made on May 12th 2014, Finansinspektionen has decided that Reinhold Europe AB (formerly Reinhold Polska AB) shall pay a penalty fee of SEK 1 500 000 for the failure to publish periodic financial information.
Supervision of the financial infrastructure works well
Finansinspektionen's and The Riksbank's joint internal audit has assessed the supervision and oversight of the financial infrastructures in Sweden on the basis of the "Principles for financial market infrastructures” (PFMIs) which Finansinspektionen use in its supervision and The Riksbank in its oversight.
Nasdaq OMX Clearing receives authorisation to be a central counterparty
Finansinspektionen grants Nasdaq OMX Clearing authorisation to act as a central counterparty in accordance with the EU’s regulation regarding OTC derivatives, central counterparties and transaction registers (EMIR).
FI withdraws the authorisation of Festival International
Finansinspektionen withdraws the authorisation of Festival International to conduct investment services.
2013
Supervision Report 2013
Many of the development trends in today’s financial markets raise important issues for FI. For consumers, greater mobility and increasingly complex financial products represent not only more opportunities but also higher risks. FI needs to bring attention to these risks and resolve them.
Implementation of the European supervisory authorities’ guidelines and recommendations
Finansinspektionen finds that guidelines from the European supervisory authorities addressed to competent authorities or financial market participants are equivalent to Swedish general guidelines.
2012
Risks in the financial system 2012
Finansinspektionen’s (FI’s) 2012 risk report 2012 continues to focus on unease on financial markets, where the greatest risk to the Swedish financial system is still a deepened sovereign debt crisis in Europe. Because of low market rates, life insurance undertakings are under pressure, and FI now sees a risk of consumers ending up in a squeeze as the firms review their commitments. This year too, FI views the financial advice market with concern. In this market, consumers are being invited to invest in complex products while advisors receive commissions.
Supervision Report 2012
The issues presented in this year’s Supervision Report stem from the work on financial consumer protection, financial stability and the requirements on company owners and management. In addition, the report discusses the increased international work, primarily within the EU.
Investigation into high frequency and algorithmic trading
High frequency trading contributes to – but is not responsible for – changes in trading. But there is still considerable concern that market abuse has increased and supervision is insufficient. These are the main conclusions from Finansinspektionen’s investigation.
2011
Risks in the financial system 2011
Sweden has remained relatively stable in a turbulent period but during this time the risk level in the Swedish financial system has also risen. The uncertainty in surrounding markets has meant that banks’ liquidity risks and the impact of low interest rates on life insurance undertakings remain in focus. Finansinspektionen also believes there is a risk that the sale of complex products to consumers will increase.
Bonuses: Are companies following the rules?
Finansinspektionen (FI) received an assignment from the Government to report on the implementation of the EU Recommendation on remuneration in the financial services sector, the measures taken to ensure compliance with the new rules and how affected companies have adapted to the recommendations.
Supervision Report 2011
Finansinspektionen's annual Supervision Report discusses areas in which fundamental issues with regard to supervision and regulatory development have risen to the forefront and in turn have resulted in new lessons and conclusions.
2010
Risks in the financial system 2010
Finansinspektionen believes the risk level in the Swedish financial sector is lower than last year. Both Sweden’s economy and the situation on the financial market have improved. However, the uncertainty present in foreign markets represents a potential threat to Sweden’s development.
Lessons learned from supervision and regulatory development
FI's annual Supervision Report describes the lessons learned from the financial crisis as well as more general issues regarding consumer protection.
2009
Risks in the financial system 2009
Finansinspektionen is charged with ensuring that the financial system isstable and efficient and that consumer protection is adequate. We carry outthese assignments by conducting supervision of financial companies, whichincludes business intelligence, the granting of licences, preparation of egulations,operational supervision with controls of how companies act andpotential interventions.
The banks’ financial advice and the law
The overall conclusion is that there is a good census of opinion between bank customers and advisors about how the advisory service should work. Both advisors and customers feel that the advice lives up to the legal requirements.
Insurance intermediaries. In the borderland between marketing and mediation
During 2008, FI has conducted a survey of the insurance intermediaries’ operations. The survey has covered 850 insurance intermediaries who have answered a questionnaire containing questions about the operations.
How firms have complied with the new securities regulations
The investment firms have made active efforts to adapt to the new regulations for the securities market, the so-called MiFID regulations. This is according to FI’s major review of banks and investment firms during 2008. The investigation has resulted in viewpoints on several areas, many of which aim at strengthening consumer protection.
Complicated financial instruments in occupational pension funds
The occupational pension funds* predominantly have no large holdings or concentrations of complicated financial instruments.
2008
Investment fund annual reports
Finansinspektionen (FI) can conclude that, on the whole, the annual reports reviewed comply with the regulatory requirements – but that improvements can be made in terms of some of the contents. The information in the annual reports shall enable mutual fund investors to assess the fund’s performance as well as provide a basis for fund comparisons.
IT disruptions at a constant, high level
IT disruptions are increasing at some companies and decreasing at others. On the whole, the number of disruptions remains at a constant, high level.
NGM's licence reinstated
The Stockholm County Administrative Court has decided that NGM's licence to operate a regulated market and trading facility shall not be revoked. NGM shall instead be issued a warning and a financial penalty of SEK 4.5 million to the government in accordance with Finansinspektionen’s proposal.
The Swedish banks can manage the recession (2008:18)
The four Swedish big banks have managed relatively well so far in the international bank crisis. Financing risks has been the greatest threat to Swedish banks during the autumn's turbulence. Thanks to measures by the Riksbank (Swedish central bank) and the Swedish National Debt Office, these risks have been managed to a great extent until the financing markets begin to function normally again.
Valuation of unlisted holdings in investment funds
Finansinspektionen can conclude that there is a need for broader guidance in terms of the fund management companies’ routines to valuate assets that are not traded on a regulated market.
Evaluation of securities settlement in Sweden in 2007
The financial markets have several important functions. They convert savings into investments, supply tools for risk management and offer payment services. Securities transactions are essential for all three functions. Securities acquisitions are a way of investing while pledging securities is a way of reducing credit exposure risks.
Market turmoil and the Swedish investment funds
The turmoil on the financial market has caused declining values and large net outflows in certain Swedish investment funds. Furthermore, some securities have become more difficult to value. According to this investigation, the fund management companies have taken actions to satisfactorily deal with this matter.
Trading activities in banks and investment firms
According to Finansinspektionen’s investigation, eight scrutinised banks and investment firms primarily have good routines for managing and appraising the trading risks for products that are difficult to assess. However, more can be done in some areas. The undertakings should improve their routines for independent assessment and control of traders’ prices. Some of the undertakings should allocate more resources for their risk control in order to attain a stronger position in terms of business.
2007
Action plan for retail investors - a 10-point action plan
Consumer protection problems on the financial market often derive from the consumer’s significant disadvantage vis-à-vis the firm in terms of information. The government’s assignment is to find different ways to level out these types of inequalities. This entails ensuring that financial firms produce relevant information that is presented to the consumer so it can be easily understood. It also entails improving the consumers’ possibilities for finding, understanding and applying relevant information. Educational and informational activities are important parts of this assignment.
Insurance companies handle some traffic injuries too slowly
Written share offers not covered by prospectus rules improved slightly over the past year. The information contained in these offers is generally still of low quality, but the total value of unregulated share offers continues to be relatively small. The results of this study have not led FI to propose an increase to the prospectus obligation threshold or national regulations for offers not covered by the prospectus rules.
Government bond market – the need for regulation and supervision
This report discusses Finansinspektionen’s view on the need for regulation andsupervision in the government bond market. FI’s level of ambition in thesupervision of the fixed income market has long been lower than that of itssupervision of the stock market. The reasons for this are primarily historical andno well-documented analysis exists. The need for such an analysis has arisen asthe supervision of financial markets has developed in Europe. In conjunctionwith the introduction of MiFID (the EC Markets in Financial InstrumentsDirective) the need for regulation and supervision in the fixed income markethas been discussed at European level.
Hedge funds and private equity firms - The exposure of banks and insurance companies
Hedge funds and private equity firms have grown in significance in theSwedish financial market in recent years. They are also receiving moreattention. This particularly applies to the failure of hedge funds and spectacularcompany takeovers by private equity capital. In view of this, FI have studiedthe exposure of banks and insurance companies. We have also carried out anoutline study of the administration and risk management related to involvementin hedge funds and private equity firms. FI is following up those firms withexposures that are significant in relation to their own funds. Furthermore, FI isfollowing up indications that suggest shortcomings in the management of a fewfirms.
New issues and initial public offerings – are safeguards working for investors?
Finansinspektionen (FI) has examined how securities institutions and issuersfollow the regulations for new issues and initial public offerings and whetherthere are risks or problems not covered by the regulation.
Information disclosure by fund management companies
This study shows that five of 18 reviewed fund management companiessystematically failed to offer their customers information as stipulated by law.
Advice, the customer and the law - a study of financial advice
In this study, FI has identified a number of areas where companies are most likely deficient in their role as a financial advisor, which can have negative consequences for both the customer and the company.
Neat and orderly? A review of 678 insurance intermediaries
FI has reviewed the basic requirements for the organisation of 678 insurance intermediaries.
Assessment of Stockholmsbörsen as a central counterparty
Finansinspektionen and the Riksbank have co-operated in the assessment of Stockholmsbörsen as a central counterparty according to international recommendations. Finansinspektionen and the Riksbank have assessed all recommendations as observed for Stockholmsbörsen.
2006
Unregulated invitations to subscribe on the stockmarket
Finansinspektionen (FI) has investigated the quality of the information in writteninvitations to subscribe for shares that are exempt from the prospectus obligation.*
The warrant market – a review of information provided to non-institutional investors
It has been possible to trade warrants on the Swedish market since 1995. A warran tis a financial instrument that gives the holder the right, but not the obligation, to either buy or sell a share at a predetermined price at a specific date in the future. Payment at redemption is effected by cash settlement. Since its introduction, warrant trading has fluctuated but in recent years it has increased in conjunction with the increasingly strong stock market. From January-June 2006, warrants were traded for a total of SEK 12.1 billion* on the Stockholm Stock Exchange and an additional SEK 7.1 billion on NDX, which is a part of the Nordic Growth Market NGM AB exchange. The majority of trades involve non-institutional investors.
Neat and orderly? - a review of 150 insurance intermediaries
Four out of five of the reviewed insurance intermediaries* do not adhere to the rules that by law pertain to their business. By law, insurance intermediaries must check employees’ conscientiousness and competence, and the checks must be documented. They must also establish internal rules to prevent money laundering.
Fee based on performance? –An examination of 47 mutual fund companies
A large and growing number of fund managers currently apply fees that are associated with returns on savings, and thus also with how successful the manager is in the undertaking.
Market supervision 2006
The basic aims of market regulation are in part to safeguard consumer interests on the financial markets, and in part to promote more efficient markets in a broad sense – these two aims very often coincide. The aims also have a clear underlying common denominator; that is,the desire to ensure all players the high quality level of information needed for them to reasonably assert themselves on the market. The basic problem that market regulation must address regards the uneven access to information and know-how, between various professional players as well as between professional players and households.
The market for overdue accounts and debt collection
Finansinspektionen and Datainspektionen (The Swedish Data Inspection Board) have joined forces to examine the market for the sale of overdue accounts.
Information disclosure by mutual fund companies
The information provided by mutual fund companies to their customers in accordance with legislation forms the basis of consumer protection in the mutual fund area.
2005
The consumer and advice
FI considers that the rules governing financial advice have resulted in notable improvements for the consumer. This is demonstrated in the study The consumer and advice, which was recently published by FI.
Processing of complaints in the financial sector
Finansinspektionen (FI) has studied how well companies follow FI's regulations and general guidelines regarding the processing of complaints. The study included 196 companies in the banking, fund management, securities and insurance sectors.
Companies' internal capital assessment – assessing capital requirements in accordance with Basel II
Commencing 2007, the reformed Basel Rules - also called Basel II - will be applicable in Sweden and the rest of the EU. Corresponding rules will also be implemented in a number of other developed countries. These rules directly affect all credit institutions and investment firms as well as the au-thorities that engage in supervision and monitoring of financial institutions and markets. However, the institutions' customers will also be affected in very specific ways - interest rates for different types of loan and to different customers will, for example, be affected. Thus, all are affected by the new rules. This in itself represents a good reason to disseminate awareness of the new regulatory regime and its various constituent parts.
The financial electricity market
Authority (FI)), the financial energy trading establishment leaves something to be desired interms of its management of communications and manner of dealing with conflicts of interest. It is important to address these shortcomings in the interests of improving the functioning of the market and increasing participation in the market. At the same time, from a regulatory viewpoint, the financial electricity market is not sufficiently significant to justify a higher ranking among FI's priority areas and an intensification of FI's involvement in this area at the expense of its other responsibilities.
Insurance broker commissions in the life insurance market
Finansinspektionen has examined insurance broker commissions of 17 life insurance companies. This report helps to explain the structure of broker commissions in the Swedish life insurance market for traditional with-profits business as well as for unit-linked business.
2004
Conflicts of interest in mutual fund companies
Finansinspektionen (FI) has conducted an investigation into conflicts of interest in mutual fund companies. The purpose of the survey was to identify, review and analyze potential conflicts of interest in mutual fund companies and the companies’ management of such.
Procedures relating to customer orders at securities companies
Finansinspektionen (FI) has conducted a review of how securities companies execute orders from private clients based on current rules, including industry regulations.
Mutual fund late trading and market timing
Finansinspektionen (FI) has conducted an investigation into late trading and market timing by mutual fund companies and how the companies ensure that such activities do not occur or at least do not disadvantage unitholders. FI has not identified anything to suggest the occurrence of late trading, i.e. that customers are permitted to buy or sell mutual fund units after market close based on the NAV determined at market close.
2001
Where to Go after the Lamfalussy Report? (2001:8)
Financial securities market regulation is subject to increasingly rapid reforms. Despite the political interest in different forms of reforms, economic analyses of the rationales for specific securities market regulation are primarily focused on specific issues such as insider trading. An overall analysis of securities markets regulation is rare. The purpose of this paper is to fill this gap.
