FAQs

Here are answers to some of the most frequently asked questions about applying for authorisation or submitting notification to FI.

If my authorisation application is refused, do I get my money back?

No, the fee covers FI's costs for assessing your application. If you are unsure about whether we will approve your application, we recommend that you contact legal counsel or the equivalent.

How do I apply for authorisation to be a currency trader?

Information is available at fi.se on how to apply to be a currency trader (see Currency traders and other financial operations for the relevant application form). If you would like to learn more about how to apply for authorisation from FI, you can read about the steps of the process at Apply for authorisation.

If I have authorisation to be a currency trader, may I receive card payments?

No, to receive card payments you must have authorisation as a payment institution or be registered as a payment service provider. Read more about authorisation for payment services at Payment Services.

How should a notification of short-selling exemptions be formulated, and what information should be included?

This type of notification must be submitted to FI digitally using the template included as an annex to the guidelines on short-selling exemptions from the European Securities and Markets Authority (ESMA).

The information that should be included in the notification is dependent on whether the exemption refers to market making activities pursuant to Article 17(1) of the Short Selling Regulation or authorised primary dealers pursuant to Article 17(3) of the same Regulation.

The information that should be included in each type of notification is described in point 65 of ESMA's guidelines. The template in Annex 1 of ESMA's guidelines refers to authorised primary dealers, and the template in Annex 2 applies to market making activities. Fill in the template in Swedish and submit to FI.

A notification must be submitted no later than 30 calendar days before the concerned natural or legal person intends to apply the exemption for the first time. This is set out in Articles 17(5) and 17(6) of the Short Selling Regulation.

ESMA's guidelines specify several obligations for parties that intend to utilise an exemption that applies to market making activities. This type of notification should contain a confirmation that the notifying entity meets/fulfils or intends to meet/fulfil

  • the general principles in paragraph 43 (although the first item is not applicable in Sweden)
  • the principles and qualification criteria that apply to each activity (see paragraphs 46–49, point 54 and paragraph 57).

Read more:

Short Selling Regulation: Regulation (EU) No 236/2012 of the European Parliament and of the Council of 14 March 2012 on short selling and certain aspects of credit default swaps

ESMA's guidelines: Exemption for market making activities and primary market operations under Regulation (EU) 236/2012 of the European Parliament and the Council on short selling and certain aspects of Credit Default Swaps

Should exemptions for authorised primary dealers be reported at the agreement or instrument level?

Exemptions for which an authorised primary dealer must submit notification in accordance with Article 17(3) of the Short Selling Regulation are notified at the agreement level. This is specified in point 65a and Annex 1 of ESMA's guidelines on short-selling exemptions. Therefore, any additional financial instruments under existing retailer agreements do not need to be submitted with regard to exemption as an authorised primary dealer.

Read more:

Regulation (EU) No 236/2012 of the European Parliament and of the Council of 14 March 2012 on short selling and certain aspects of credit default swaps (Short Selling Regulation)

ESMA's guidelines on exemption for market making activities and primary market operations under Regulation (EU) 236/2012 of the European Parliament and the Council on short selling and certain aspects of Credit Default Swaps (ESMA's guidelines on short selling exemptions)

Exemption for market making activities: what information needs to be submitted to FI if new instruments are added to existing agreements?

When applying the exemption for market making activities, notification of new instruments added to existing agreement must be submitted to FI, see point 65b and Annex 2 of ESMA's guidelines on short selling exemptions. The notifying entity must ensure that all of the information stated in point 65b is included for each individual notification. Refer also to the answer about how to formulate a notification of short-selling exemption and the information that should be included in the notification.

The notifying entity must submit information about the financial instrument(s) to which the notification of short selling exemption refers for each capacity in its market making activity. The information must be exhaustive and make it possible for FI to identify each individual instrument that is being notified for exemption. It must be clearly specified which financial instruments are new, i.e. which are being added to existing agreements.

The guidelines outline the specific cases in which the notifying entity must provide special information, for example

  • for market making activities under Article 2(1)(k)(i) of the Short Selling Act, expected daily volumes of market making activities in a financial instrument (cf. point 65(xii)(1) of ESMA's guidelines.
  • for market making activities under Article 2(1)(k)(ii) of the Short Selling Act, expected weekly volumes of market making activities in a financial instrument (cf. paragraph 65(xii)(1) of ESMA's guidelines.

FI requests notification of granted exemptions that are no longer being applied. FI also requests notification when the ISIN code for an instrument changes. No fee is charged for these notifications.

Read more:

Short Selling Regulation (Article 17(1)): Regulation (EU) No 236/2012 of the European Parliament and of the Council of 14 March 2012 on short selling and certain aspects of credit default swaps

ESMA's guidelines: Exemption for market making activities and primary market operations under Regulation (EU) 236/2012 of the European Parliament and the Council on short selling and certain aspects of Credit Default Swaps

Does an insurance broker need to have its own liability insurance to receive authorisation to distribute insurance?

An insurance broker does not need to have its own liability insurance, but must always be covered by such a policy. It is sufficient if the person applying for authorisation for insurance distribution is covered by another insurance broker's liability insurance.

In relation to each broker covered by it, the liability insurance must always meet requirements on minimum amounts that are covered by the insurance. This means, for example, that the minimum amount must be doubled when two brokers without employees are covered by the same liability insurance. In other words, several insurance brokers, each of whom is subject to the authorisation obligation, cannot share the same minimum amount.

These requirements are set out in Chapter 7 of Finansinspektionen's regulations (FFFS 2018:10) on insurance distribution. Refer also to the decision memorandum for the regulations, page 37 (in Swedish only).

One condition for receiving authorisation for insurance distribution is that the person or the firm applying for authorisation is covered by insurance for liability for damages. Insurance broker can be liable for damages if they fail to fulfil their obligations. The requirement on being covered by a liability insurance is set out in Chapter 2, sections 7 and 8 of the Insurance Distribution Act (2018:1219).

According to the preparatory works (Bill 2017/18:216 p. 467) underlying the Insurance Distribution Act, the formulation "covered by a liability insurance" means that a person either has signed up for an insurance policy or is covered as an insured by another policyholder's insurance.

Read more:

Insurance Distribution Act (2018:1219)

New Insurance Distribution Act, Bill 2017/18:216

Finansinspektionen's regulations (FFFS 2018:10) on insurance distribution (with decision memorandum, which is only in Swedish)

Last reviewed: 2020-01-02
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