FFFS 2017:2

Summary

The regulations contain rules for how a securities institution shall organise its operations and act toward its customers. The rules apply to knowledge and competence, product governance requirements, safeguarding of client assets and payments to and from third parties (incentives).

The regulations are the result of amendments to the Securities Market Act to implement Directive 2014/65/EU (MiFID II).

The new regulations will go into effect on 3 January 2018

Amendments

FI adds a disclosure that there are additional provisions set out in Finansinspektionen's regulations (FFFS 2022:20) regarding a pan-European personal pension product for investment firms that are PEPP providers or PEPP distributors pursuant to Regulation (EU) 2019/1238 of the European Parliament and of the Council of 20 June 2019 on a pan-European Personal Pension Product (PEPP).

The amendments enter into force on 1 January 2023. Amendment 2022:26

The amendments apply to securities institutions. They also apply to some business conducted by Swedish management companies and AIF managers, namely discretionary portfolio management of financial instruments and ancillary services.

The amendments to the regulations relate to product governance. The amendments entail in part that sustainability factors and sustainability-related objectives shall be considered when a securities institution specifies its target group for a financial instrument and that sustainability factors shall be presented in a transparent manner.

The amendments implement the changes to Directive (EU) 2017/593 via Directive (EU) 2021/1269.

The amendments enter into force on 22 November 2022. Amendment 2022:16

FI is amending the regulations' chapter on remuneration to or from a third party. The amendments refer to the conditions for a securities institution to be allowed to receive investment analyses from a third party without it being considered remuneration or a benefit. The regulations are being amended because an amendment directive has amended Directive (EU) 2014/65 on markets in financial instruments (MiFID II).

The amendments enter into force on 8 March 2022. Amending 2022:5

Due to the entry into force of the Investment Firms 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:

• Introduction of new provisions regarding general organisational requirements, risk management, remuneration systems and administrative procedures and documentation.
• Adaptation of the scope so that all companies that will apply the Investment Firms Regulation or the Capital Requirements Regulation (575/2013/EU) are subject to the correct provisions and small and non-interconnected securities companies are exempt from certain provisions.
• Minor subsequent amendments and editorial changes.

The amendments enter into force on 7 July 2021. Amendment 2021:27

FI is introducing a new Chapter 2a with rules regarding what a securities company shall submit to the authority when applying for authorisation to conduct ancillary pursuant to Chapter 2, section 3 of the Securities Market Act (2007:528). FI is also amending Chapter 7, section 7, which entails that free test subscriptions of investment analysis is introduced as a minor non-monetary benefit. Editorial changes were also made to the regulations. The amendments enter into force on 2 July 2019. Amendment 2019:9