Banking Regulation 2021

Published date19 January 2021
Subject MatterFinance and Banking, Financial Services
Law FirmHammarskiold & Co
AuthorMattias Anjou, Emma Lindwall, Johan L'fquist and Isabelle Vinterskog

1. LEGISLATIVE FRAMEWORK

1.1 Key Laws and Regulations

Key Laws and Regulations

As Sweden is an EU Member State, Swedish banks are subject to laws and regulations on an EU level and a national level. Consequently, Swedish banks are subject to national laws implementing the Capital Requirements Directive (2013/36/EU) (the CRD) and directly subject to the Capital Requirements Regulation (EU No 575/2013/EU) (the CRR), which are the two key European legislative acts that govern the Swedish banking sector.

On a national level, Sweden has implemented the CRD through the Banking and Financing Business Act (2004:297) (the BFA). The CRR is directly applicable in Sweden but has been complemented with certain Swedish rules, including the Credit Institutions' and Investment Firms' (Special Supervision) Act (2014:968) (the Special Supervision Act) and the Capital Buffers Act (2014:966) (the CBA). The relevant acts set out general prudential and organisational requirements with which Swedish credit institutions (including banks) must comply. For banks that are limited liability companies, the general Swedish Companies Act (2005:551) (the Companies Act) is also an important piece of legislation that has an implication on the corporate governance of Swedish banks.

Banks that provide investment services are subject to the Securities Market Act (2007:528) (the SMA), implementing MiFID 2 (2014/65/EU). Other key legislation containing requirements in relation to specific financial services includes the Payment Services Act (2010:751) implementing PSD2 (EU) 2015/2366, and the Consumer Credit Act (2010:1846), regulating consumers' rights in relation to credits offered to consumers.

Swedish banks are subject to the Anti-Money Laundering and Terrorist Financing Act (2017:630) (the AMLA), implementing the AML Directive (EU) 2015/849, which stipulates requirements in relation to the prevention of money laundering and terrorist financing.

In relation to depositor protection and the crisis management of banks, the Deposit Guarantee Act (1995:1571) (the DGA) (providing for the Swedish deposit guarantee scheme) and the Resolution Act (2015:1016) implementing the Banking Recovery and Resolution Directive 2014/59/EU are key pieces of legislation.

Swedish laws are supplemented by regulations (mandatory rules) and guidelines (comply or explain principle) issued by the Swedish regulator and financial supervisory authority, the Swedish Financial Supervisory Authority (Finansinspektionen) (the SFSA). Furthermore, the guidelines of the European Banking Authority (EBA) generally apply to Swedish banks, either directly through confirmation by the SFSA or as further implemented by SFSA regulations or guidelines. Upon confirmation by the SFSA, EBA guidelines have the same legal status as the SFSA guidelines.

Regulatory Authorities

The SFSA is the primary regulator in the financial sector and is responsible for the...

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