FFFS 2007:16

Summary

These regulations govern investment firms' conduct towards clients and how they organise their operations. The principles for investment firms' activities contained in the Securities Market Act are also explained in the regulations. They are a result of the implementation in Sweden of EU Directive 2004/39/EC on Markets in Financial Instruments (MiFID) and contain the rules found in MiFID's Implementing Directive.

The regulations also describe how an investment firm shall handle conflicts of interest and what they shall observe when entering an outsourcing agreement. They also regulate which information firms shall provide to and obtain from clients. The regulations also govern the best execution and handling of client orders.

The new regulations entered into force on 1 November 2007, at which time the following regulations were repealed:

• FFFS 2002:5 regarding securities operations
• FFFS 2002:6 governing the business plan for investment firms, etc.,
• FFFS 2002:7 governing rules of conduct on the securities market
• FFFS 2005:10 regarding the handling of conflicts of interest related to analysts at securities institutions.

Amendments

The amendments entail that some references in the regulations, to national provisions and the 2003 Market Abuse Directive, have been replaced with references to EU's Market Abuse Regulation. The amendments enter into force on 1 February 2017. Amendment 2016:35

FI is changing the Swedish word that is used for "central securities depository". The amendment is made to adapt the terminology to corresponding changes in Swedish law that enter into force on 1 March 2016, including in the Bookkeeping Act. Changing this term in Swedish has no impact on the meaning of the regulations. The term "central securities depository" remains the same in the English translations.

The amendments enter into force on 01 March 2016. Amendment 2016:10

FI prescribes that Chapter 6, section 5d, line i of FFFS 2007:16 regarding investment services and activities shall be repealed. Amendment 2016:7

FI is implementing some of the Capital Requirement Directive's regulations on corporate governance and risk management, including requirements on application at group level and requirements on the establishment of a risk committee in significant undertakings. Undertakings shall also have a diversity policy and a recovery plan. Undertakings shall also set aside sufficient resources to train board members. The amendments enter into force on 2 August 2014. Amendment 2014:16

According to the amendment, the regulations in Chapters 6 and 9 shall not be applied by credit institutions that conduct investment services and activities. The amendment also clarifies which information a securities company and a credit institution that conduct investment activities and services shall submit when applying for authorisation. Amendment 2014:2

The amendment repeals a provision in the entry into force and transitional regulations. Amendment 2013:15

The amendments aim to improve and clarify the regulations and bring them in line with the implementation directive (Directive 2006/73/EC). The term "executive management" is replaced by provisions specifying the responsibilities of the board and the managing director. FI also identifies certain internal guidelines that the board must adopt. The amendments also introduce clarifications that aim to simplify the application process for the undertakings applying for additional authorisations. FI is also introducing a new provision on how certain information shall be forwarded to unit holders. Amendment 2011:41

The regulations on the reporting of customer information in Chapter 22 are changed to also include the reporting of financial instruments that are admitted to trading on a trading venue and OTC derivatives. The amendment goes into effect for OTC derivatives on 1 November 2010 and for others on 1 March 2010. Amendment 2009:10

The regulations regarding ownership and management suitability assessment in Chapter 5 have been amended due to the new Acquisition Directive in the EU. The largest change is in the appendices to the regulations, which contain an exhaustive list of the information that must be provided to FI during an ownership and management suitability assessment (Appendix 3 a-c and Appendix 4). An exemption is possible if the information does not correspond to the benefit FI experiences during the assessment or if the requirements are not adapted to the party that is the acquirer and the nature of the acquirer. The amendment will enter into force on 15 November 2009. Amendment 2009:4