FFFS 2014:12

Summary

The regulations contain rules on consolidated situation, own funds, own fund requirements, large exposures, liquidity, reporting, disclosure of information, capital buffers and documentation of the undertakings' capital and liquidity assessment procedures.

The regulations are part of the Swedish implementation of the Basel III Agreement that is being introduced within the EU through the Capital Requirements Regulation and the Capital Requirements Directive.

Amendments

The scope of the regulations has been expanded to include very large securities companies.

The amendments enter into force on 8 March 2023. Amendment 2023:6

The amendment entails that Chapter 3, section 4 of Finansinspektionen's regulations and general guidelines (FFFS 2014:12) regarding prudential requirements and capital buffers is repealed. The amendment is due to amendments to the Capital Requirements Regulation.

The amendments enter into force from 8 July 2022. Amendment 2022:13

Due to the entry into force of the Investment Funds Regulation (2019/2933/EU) on 26 June 2021, and the provisions in the Investment Firms Directive (2019/2034/EU) that will be implemented into Swedish law, the following amendments are being made:

• A large number of provisions will no longer apply to most investment firms.
• Most investment firms will be subject to provisions on exemptions for large exposures pursuant to the Investment Firms Regulation.
• Requirements are introduced on reporting in accordance with the Investment Firms Regulation.
• Requirements on documentation of the capital liquidity assessment process will also apply to investment firms subject to the Investment Firms Regulation, with the exception of those considered to be small and non-interconnected.
• Minor subsequent amendments and editorial changes have been made.
  
  

The amendments enter into force on 7 July 2021. However, the amendments in Chapter 9, sections 9–11will be applied first on 1 January 2023. Amendment 2021:24

The regulatory amendments entail in part new or amended regulations regarding

• disclosure of information
• exemption for some undertakings from applying Article 413 of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012
• which information a holding company must submit to Finansinspektionen in conjunction with applications for approval or exemption from the requirement on approval pursuant to the Special Supervision of Credit Institutions and Investment Firms Act (2014:968)
• interventions and restrictions if the leverage ratio buffer requirement is not met.

The regulations enter into force on 28 June 2021 with regard to Chapter 1, sections 3 and 5, Chapter 6, section 1, and Chapter 8, sections 2 and 4–11, and otherwise on 29 December 2020. The provision in Chapter 9, sections 9–11 will be applied for the first time on 1 January 2023. Amendment 2020:32

The regulatory amendments introduce new regulations regarding

• a notification obligation for the issuance of capital instruments
• disclosure of information regarding own funds requirements and own funds
• the threshold for when a default is considered to have occurred.
• The amendments also grant Finansinspektionen the possibility of deciding on consolidation under certain conditions. The provisions regarding groups of connected clients are also repealed.

The regulations enter into force on 15 June 2019. Amendment 2019:6

FI is introducing an exemption from the requirements set out in Article 129(1)(c) of the Capital Requirements Regulation by means of an amendment to Finansinspektionen's regulations (FFFS 2014:12) regarding prudential requirements and capital buffers.

FI is introducing the exemption to avoid the concentration problems on the Swedish market that could arise if issuers of covered bonds were referred to only a few derivative counterparties.

EBA has published an opinion on FI's decision and finds it to be justified.
The regulatory amendment enters into force on 31 March 2015. Amendment 2015:3