A stable, well-functioning financial market for allA stable, well-functioning financial market for allNews
2022
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.
Finansinspektionen’s strategy to prevent greenwashing
FI’s strategy for preventing greenwashing in the financial sector aims to safeguard the trust in sustainable investments and a sustainable finance market.
Roadmap for sustainable finance
In 2019, FI’s overarching mandate was expanded to include a responsibility to ensure that the financial system contributes to sustainable development. FI is also the responsible supervisory authority for a number of new regulations related to sustainable finance that are the result of the EU’s ambitious sustainability agenda.
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.
Stability in the Financial System (2022:2)
High inflation has led to rapidly rising interest rates. Given the current rapid change in conditions, both participants on the financial markets and borrowers need to transition quickly. In the short term, this means elevated risks and greater uncertainty. The already high risks in the commercial real estate sector have continued to increase.
FI Analysis No. 37: Stress tests of funds’ liquidity risks
FI’s stress tests show that the majority of Swedish funds appear to be able to handle relatively large outflows in an effective manner. However, some corporate bond funds and a relatively large share of high-yield bond funds may experience liquidity problems under stressed market conditions.
TRS 2 system closed on Wednesday, 23 November
The TRS 2 system will be closed for maintenance on Wednesday, 23 November. It will be possible to submit TR files, but feedback will not be sent until after the maintenance is completed.
SIP Nordic receives a warning and an administrative fine
SIP Nordic Fondkommission AB (SIP Nordic) is receiving a warning and must pay an administrative fine of SEK 6.7 million.
Celina Fondförvaltning receives warning and administrative fine
Celina Fondförvaltning AB (Celina) is receiving a warning and must pay an administrative fine of SEK 10 million.
Improperly issued error codes CON-070 and CON-160 may occur in the TRS 2 validation
From around the 26:th of October it has occurred that Buyer and Seller LEI have been wrongly validated, which has resulted in improperly issued error codes CON-070 and CON-160.
The TRS 2 system’s test environment will be closed for maintenance on Wednesday, 9 November
It will be possible to submit TR files, but feedback will be sent first after the maintenance has been completed.
Funds with sustainable investment as its objective
The Swedish Financial Supervisory Authority, Finansinspektionen (FI) has conducted an in-depth analysis of how managers of funds registered in Sweden that have sustainable investment as its objective (so-called Article 9 funds) meet the requirements on sustainability-related disclosures in the pre-contractual information they must provide to investors.
TRS 2 system closed on Wednesday, 5 October
The TRS 2 system will be closed for maintenance on Wednesday, 5 October.
TRS 2 closed 28 september
The FTP server for the TRS 2 system will not be available on 28 September 2022 due to a change in certificate.
The TRS 2 system’s test environment will be closed for maintenance on Wednesday, 21 September
It will be possible to submit TR files, but feedback will be sent first after the maintenance has been completed.
Erik Thedéen: Adjustments needed on the commercial real estate market
Erik Thedéen, Director General of Finansinspektionen (FI), spoke at the Öresundsmarknaden conference about FI’s view on the commercial real estate market.
Unclear information about sustainable funds
The disclosures provided about funds with sustainable investment as their objective are often unclear. This is the conclusion of an in-depth analysis conducted by Finansinspektionen (FI). In many cases, the disclosures provided in the funds’ prospectuses need to be clearer and more specific.
FI closes investigation into EQT AB
Finansinspektionen has closed an investigation into whether EQT AB was in violation of EU’s Market Abuse Regulation (MAR) when the company disclosed information on 7 September 2021 regarding a revision of the existing lock-up agreements. FI has closed the investigation.
Test environment for TRS 2 closed 14 september
The FTP server for the TRS 2 system's test environment will not be available on 14 September 2022 due to a change in certificate.
Erik Thedéen: Current assessment of financial stability
FI’s Director General Erik Thedéen participated in a panel discussion on the opportunities and risks associated with increased application of artificial intelligence and machine learning within lending and advice to households. Before he described FI’s view on this topic, Thedéen commented briefly on FI’s current assessment of the stability of the Swedish financial system.
Start of regular publication of aggregate short positions
Starting today, Finansinspektionen will regularly publish the total of all short positions that must be reported to FI.
It is now possible to update the installed application for periodic reporting
Rapporteurs need to update the application for periodic reporting that they have installed locally. The new version is now available to download and install.
Rising interest rates put pressure on indebted households and firms
Interest rates are rising rapidly in the wake of high inflation. High interest rates and lower risk appetite are placing downward pressure on risk-taking and asset prices. In the long term, this can slow the growth of debt and benefit financial stability. However, the large debts that built up over the extended period of low interest rates are putting pressure on highly indebted households and firms.
Stability in the Financial System (2022:1)
Interest rates and interest rate expectations have increased in 2022 due to high and rising inflation. One sector that is vulnerable to rising interest rates is the commercial real estate sector. FI has also noted that liquidity on the bond markets has decreased, and the functionality of the corporate bond market is once again impaired.
Operational interruption in TRS 2 for maintenance
The TRS 2 system will be closed for maintenance on Tuesday, 31 May, due to the roll-out of the European Securities and Markets Authority’s (ESMA) updated validation rules.
FI publishes aggregate short positions
Starting today, and on every Wednesday at 1:00 PM, Finansinspektionen will publish aggregate outstanding short positions.
Nordnet Bank receives a remark and an administrative fine
Nordnet Bank is being issued a remark and must pay an administrative fine of SEK 100 million.
Increased cyber security in the finance sector is needed
The financial sector must quickly become better at preventing and handling cyber threats. Customers and society at large must be able to trust that the critical services offered by financial corporations will function even during periods of uncertainty and in the presence of threats. As commissioned by the government, Finansinspektionen (FI) therefore has proposed a number of measures to increase resilience to cyber attacks in the financial sector.
TRS 2 system continues to experience disruptions
The TRS 2 system has been experiencing operational disruptions following the technical maintenance performed on Wednesday. Some rapporteurs are having difficulty connecting or not receiving feedback.
Consumer Protection Report 2022
Unsound lending practices and commission from the sale of financial instruments are the highest prioritised risks in Finansinspektionen’s (FI) consumer protection assignment for 2022.
Are banks refusing to open payment accounts for too many customers?
Are banks correct in refusing to open accounts for certain consumers? And what role do credit intermediaries play in many consumers taking large unsecured loans? These are two of the issues that Finansinspektionen (FI) will look more closely at in 2022 and that we present in this year's Consumer Protection Report.
TRS 2 closed for maintenance
TRS 2 will be closed for maintenance the 4 May.
Finansinspektionen introduces new online tool for applications
The objective of the new online tool is to facilitate and streamline the application process at FI. It should be easy to submit an application to Finansinspektionen correctly and difficult to submit an application incorrectly. It will also be possible to track an application through the different stages of FI’s processing. The first applications that can be submitted via the new online tool will be management and owner management suitability assessments, and this module is expected to be operational in the autumn.
FI reviews sustainable funds
Demand for green and sustainable investments is increasing rapidly. This increases the risk of greenwashing, i.e. presenting organisations and products as more sustainable than what they are in reality. Finansinspektionen (FI) will therefore review that the disclosures provided about the funds classified as the most sustainable fulfil the strict requirements placed on them.
Johanna Fager Wettergren: Social factors are important for sustainable investments
“A lot is about common sense; there isn't time to wait for the perfect solutions. This obviously applies to the climate, but it also clearly applies to social issues. Politicians may be equipped with the sharpest tools – but the financial sector has a very important role to play.”
Erik Thedéen's speech at the A4S Roundtable
Erik Thedéen, Finansinspektionen's Director General made a speech at the A4S Reporting Roundtable the 1 March in London.
New EU sanctions in response to the situation in Ukraine
EU is implementing new and expanded sanctions in response to the situation in Ukraine. Sanctions issued by the European Union in the form of regulations are directly applicable in Sweden.
Installed application for periodic reporting will be upgraded this spring
The application that is used for some periodic reporting to Finansinspektionen and that rapporteurs have installed locally on their computers will need to be upgraded later this spring. The reason for the upgrade is security improvements.
TRS 2 closed for maintenance
TRS 2 will be closed for maintenance Wednesday the 16 February.
FI’s prioritised areas for 2022
Do firms lend money to people who cannot pay back the loan? Do financial firms work enough with their IT security? How green are green funds, in reality? These are three areas that Finansinspektionen (FI) will investigate more closely in 2022.
The threshold for notifing net short positions is lowered
The notification threshold is permanently lowered from 0.2 per cent to 0.1 per cent.
Postponed maintenance of the TRS 2 system
TRS 2 will be closed for maintenance on Monday the 31 January.
TRS 2 closed for maintenance
TRS 2 will be closed for maintenance on Monday the 24 January.
Susanna Grufman new executive director of Markets
On 1 February, Susanna Grufman will become the executive director of FI’s Markets section. She will continue to serve as the deputy director general and maintain responsibility for consumer protection matters.
2021
Application for administrator authorisation – STIBOR may continue to be used while FI evaluates the application
Swedish Financial Benchmark Facility AB (SFBF) submitted an application to Finansinspektionen (FI) on 27 December 2021 to become an authorised administrator in accordance with the EU’s Benchmark Regulation (BMR).
Erik Thedéen: Crypto-assets today and in the future
” Ultimately, this is about energy efficiency. Energy is a scarce resource, and as a society, we have invested heavily in energy-efficiency improvements across all sectors. We need to consider a similar technology shift for crypto-assets.”
Recommended actions in the event STIBOR is no longer provided
The Swedish Bankers’ Association published a recommendation yesterday on the actions users of the STIBOR reference rate should take if STIBOR were no longer provided. Finansinspektionen (FI) would therefore like to clarify how we will issue statements, if necessary, in the event STIBOR ceases to be provided.
Updates in reporting AML
New reporting questions in 2022
FI Supervision 19: Credit institutions’ management of counterparty risk and CVA risks
FI has conducted an investigation into a number of credit institutions’ exposures, risk measurement and management of counterparty risk and credit valuation adjustment (CVA) risk related to positions in financial derivatives.
Resilience is needed as the risks in the commercial real estate sector increase
The economic recovery has been stronger than expected this year, in part due to strong support measures during the pandemic. At the same time, risks are building up, writes Finansinspektionen (FI) in its second stability report of the year. The report is being presented today by Director General Erik Thedéen and Chief Economist Henrik Braconier at a press conference.
Stability in the Financial System (2021:2)
Sweden’s economy has largely recovered and there is good access to financing in the financial system. The Riksbank should therefore begin the phase-out of asset purchasing to avoid further increase of risk-taking. Amongst others, FI sees growing risks within the commercial real estate companies.
IMF to assess financial stability in Sweden
The International Monetary Fund (IMF) will conduct a review of the financial sector and the work of the authorities on financial stability, a so-called FSAP (Financial Sector Assessment Program) in 2022. FSAPs are conducted regularly for countries with systemically important financial markets. In its report, the IMF will highlight any flaws and risks in the system and propose measures to deal with them.
TRS 2 closed for maintenance 18 November
TRS 2 will be closed for maintenance the 18 November.
Crypto-assets are a threat to the climate transition – energy-intensive mining should be banned
The most common method for producing crypto-assets requires enormous amounts of electricity and generates large CO2 emissions. Crypto-asset producers are keen to use more renewable energy, and they are increasing their presence in the Nordic region. Sweden needs the renewable energy targeted by crypto-asset producers for the climate transition of our essential services, and increased use by miners threatens our ability to meet the Paris Agreement. Energy-intensive mining of crypto-assets should therefore be prohibited. This is the conclusion of the director generals of both the Swedish Financial Supervisory Authority and the Swedish Environmental Protection Agency.
Erik Thedéen talks about sustainability reporting at COP26
A global standard for sustainability reporting will make it possible for the finance sector to steer investments from harmful activities to activities that contribute to the climate transition. Finansinspektionen’s (FI) Director General Erik Thedéen will be at the UN’s climate conference (COP26) in Glasgow to talk about this work.
The TRS2 test environment closed on Monday for maintenance
On Monday, 1 November, the TRS2 test environment will be closed for maintenance.
Incident in the TRS 2 test environment resolved
The incident entailing missing or incomplete feedback in the TRS2 test environment has been resolved today the 22 October. FF- and FD-files are now generated normally.
FI increases sustainability efforts with new manager
Finansinspektionen (FI) is creating a new position to strengthen its work within sustainability. Johanna Fager Wettergren will be the new Head of Sustainable Finance.
FI withdraws the authorisation of securities company Nordic Fondkommission AB
Finansinspektionen (FI) is withdrawing the authorisation of securities company Nord Fondkommision AB (Nord) due to severe deficiencies in the company’s advisory activities and other areas. This decision means that the company must cease all regulated activities. As a result, it may no longer provide financial advice or sell financial products. The decision will be presented by FI Director General Erik Thedéen and Chief Legal Counsel Eric Leijonram at a press conference today, Wednesday, 13 October, at 10:00 AM.
Nord Fondkommission AB’s authorisation is withdrawn
Finansinspektionen (FI) is withdrawing all of Nord Fondkommission AB’s (Nord) authorisations due to severe deficiencies, in part in the company’s advisory services.
FI opens investigation into EQT AB
Finansinspektionen has decided to open an investigation into EQT AB for suspected breach of the Market Abuse Regulation (MAR) in conjunction with a delayed disclosure of inside information. FI’s handling of this matter is thus entering a new phase.
TRS 2 closed for maintenance
On Friday, 24 September, until Sunday, 26 September, TRS 2 will be closed for maintenance.
FI reviews EQT’s handling of delayed disclosure
On 7 September, FI received a notification from EQT AB regarding a delayed disclosure of inside information. On 14 September, FI requested that the company submit an account of the circumstances that served as a basis for the delayed disclosure. FI will analyse the response from EQT AB in order to decide if there are grounds for further action.
New procedures for submission of Key Investor Information Document for foreign UCITS
Pursuant to Article 93 (7) and (8) of Directive 2009/65/EC, a foreign UCITS established in another Member State authorised for marketing in Sweden must submit to Finansinspektionen annual updates of KIID(s) or updated KIID(s) of share class(es) authorised for distribution in Sweden.
LEI validation in the TRS 2 system is functional again
FI has received and input all GLEIF LEI data files that were missing in the TRS 2 system due to an incident that occurred at ESMA during the period 2021-08-10–2021-08-27.
The TRS 2 system has an ongoing IT incident
ESMA has had an ongoing IT incident since 10 August 2021 that has prevented it from delivering to national supervisory authorities LEI reference data files for transaction validation.
Proposal to repeal regulations regarding MREL reporting
FI proposes that the regulations (FFFS 2019:1) regarding periodic reporting of data on the minimum requirement for own funds and eligible liabilities (MREL) be repealed.
FI Supervision Report 23: Observations from anti-money laundering reporting
FI has analysed and compared information that firms under FI’s money laundering supervision reported to the authority during the years 2018-2021. The analysis indicates areas where the companies need to develop their processes to better handle the risk of being misused for money laundering or terrorist financing.
Erik Thedéen: Crypto-assets – risks and opportunities
“The technology behind crypto-assets has the potential to create value for society, but crypto-assets like Bitcoin also pose significant risks,” said Erik Thedéen, when he spoke about the development of crypto-assets today at a seminar arranged by the Swedish Investor Relations Association.
TRS 2 closed for maintenance
On Wednesday, 16 June, TRS 2 will be closed for maintenance.
Stability in the Financial System (2021:1)
The economy is continuing to recover. Support measures have been necessary to speed up the recovery, but they need to be gradually phased out as the economy strengthens. This applies primarily to measures that are associated with the build-up of stability risks.
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.
Liquidity tools in UCITS and special funds
Finansinspektionen concludes in a new report that fund managers need access to additional tools to manage liquidity risks in Swedish UCITS and special funds. We consider there to be a certain type of swing pricing that could be used already today. The report outlines a suggestion for how to regulate this and other liquidity management tools in legislation and regulations. FI takes the position that Swedish UCITS only need to be open for redemptions once a week. We suggest that the funds instead only need to be open for redemptions twice a month.
Memorandum Legislative Measures due to the EU’s Green Taxonomy Regulation
Finansinspektionen (FI) supports in general the proposals in the memorandum. However, FI has some feedback points about the proposals.
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.
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.
Erik Thedéen: The private sector can and should take the chance to speed up the transition
Climate change is an existential threat to mankind. In order to meet this threat, we need extensive policy decisions. In particular, carbon prices must go up. The private sector and the financial market can contribute, said Finansinspektionen’s Director General Erik Thedéen at the Hållbara Finanser 2021 conference (Sustainable Finances). By already preparing now to be able to quickly report in accordance with future international standards on corporate sustainability reporting and also voluntarily using and reporting internal carbon pricing.
FI Analysis 30: Internal price on carbon – what and why?
To reach the climate goals in the Paris Agreement, carbon emissions must go down. The most efficient way to achieve this is by raising the cost of emissions compared to today.
Sustainability Report 2021 – the climate in focus
Finansinspektionen has an assignment to promote the financial system’s contribution to sustainable development. The sustainability report outlines the current sustainability issues that are related to the financial sector and lists examples of what FI is working on in this area.
Temporary lowering of notification threshold expires
The European Securities and Markets Authority (ESMA) has decided not to renew its decision to temporarily lower the notification threshold for when net short positions are to be notified to the relevant national competent authority.
Cyber threats and financial stability – FI’s roll and assignments
In recent years, a number of legislative proposals and other initiatives have been presented to strengthen the financial sector’s resilience to cyberattacks. Given this background, Finansinspektionen has prepared a memorandum to describe FI’s role in terms of contributing to strong cyber security and its work to prevent cyber threats to the Swedish financial sector.
IOSCO takes important step towards global sustainability disclosure
An important step has now been taken towards a global standard for sustainability reporting. The Board of Directors of the International Organization of Securities Commissions (IOSCO) voted during its meeting yesterday for IOSCO to actively work to achieve a unified and comparable global standard for sustainability disclosure. IOSCO’s work in this area is being carried out within the work group led by Finansinspektionen’s Director General Erik Thedéen.
Young adults and low-income earners face greatest risk of debt trap
Young borrowers and borrowers with low income run a higher risk of experiencing payment problems when they take non-mortgage loans, even if they only borrow small amounts. At the same time, the risk that consumers will get trapped in debt decreases if credit providers conduct thorough credit assessments. These are the conclusions of a new analysis from Finansinspektionen that is presented in conjunction with this year’s consumer protection report.
Consumer Protection Report 2021
Paying by invoice or with other credit-based offers is becoming an integral part of shopping online. Young adults are unique with their small margins and large number of payment reminders and collection notices. Unaffordable loans are a prioritised consumer risk in this year’s report.
FI warns consumers of risks connected to cryptoasset products
Think carefully before buying a financial product containing cryptoassets. The risks are significant and the protections for you as a consumer are weak, FI warns today.
FI Supervision Report 21: Financial instruments with crypto-assets as underlying asset
FI conducted a thematic review of the market for financial instruments with crypto-assets as an underlying asset. FI is of the view that there is a lack of adequate consumer protection regulation for crypto-assets. Valuing them is also challenging and the instruments are volatile. This makes the products unsuitable for most, if not all, retail consumers.
2021:1 Bond-financed lending
In this document, FI states its position on what is viewed as receiving repayable funds in accordance with Chapter 1, section 4 of the Banking and Financing Business Act.
FI’s prioritised areas for 2021
Are the banks conducting thorough credit assessments when customers apply for consumer credit? Are smaller banks and payment service firms taking sufficient measures to prevent money laundering? What risks will the coronavirus pandemic pose in the future? These are three areas that Finansinspektionen (FI) will look more closely at in 2021.
Finansinspektionen’s prioritised areas for 2021
Consumer protection, money laundering and risks that the coronavirus pandemic may pose in the future are three areas that FI will look more closely at in 2021.
Clarification of Finansinspektionen's sanction decision against Nasdaq Clearing AB
By its decision of 26 January 2021, Finansinspektionen (FI) issued Nasdaq Clearing AB a warning for serious deficiencies in its operations. According to the decision, Nasdaq Clearing must also pay an administrative fine of SEK 300 million.
Nasdaq Clearing receives warning and administrative fine of MSEK 300
Finansinspektionen (FI) is issuing Nasdaq Clearing AB a warning for serious deficiencies in its operations, in part in conjunction with a member of the firm’s commodities market being declared in default in 2018. Nasdaq Clearing must also pay an administrative fine of SEK 300 million.
Nasdaq Clearing Aktiebolag receives a warning and an administrative fine
Nasdaq Clearing Aktiebolag is receiving a warning and must pay an administrative fine of SEK 300 million.
TRS 2 closed for maintenance
On Tuesday, 26 January, TRS 2 will be closed for maintenance.
Update of FI’s Company Register
Due to the United Kingdom’s withdrawal from the European Union, financial actors’ right to conduct cross-border operations in or from the United Kingdom that are based on European Union law was repealed on 1 January 2021.
2020
New procedures to enhance transparency
As of 1 January 2021, FI will implement new procedures for how it announces opened and closed supervision investigations.
Maintenance of TRS2 system planned for beginning of January 2021 in conjunction with Brexit
Due to Brexit, ESMA will have a maintenance window from 31 December 2020 through (preliminarily) 7 January 2021.
Reminder: what a hard Brexit will entail
What will happen in the event that the transition period ends without an agreement between the EU and the UK.
Stability in the Financial System (2020:2)
The pandemic has triggered a deep economic recession in many countries, even if a slight recovery has begun. Extensive support measures have mitigated the economic impact and reduced the uncertainty on the financial markets. During the autumn, infection rates have once again begun to increase and several countries have introduced new restrictions, which will dampen the economic recovery, even though it is uncertain to which extent.
