Latest News in Financial Regulation – August 2025

The Swedish Tax Agency requests a new investigation into the taxation of endowment insurance

The Swedish Tax Agency has requested that the government conduct an investigation to ensure that the taxation of endowment insurance becomes more predictable and that they are not used for tax evasion purposes. The Swedish Tax Agency believes that the limit for what constitutes taxable assets in an endowment insurance is unclear. The Swedish Tax Agency also believes that valuation problems arise when unlisted assets are placed in an endowment insurance policy.

FI publishes report on conflicts of interest in insurance mediation

According to an in-depth analysis by Finansinspektionen, there are major risks of conflicts of interest in insurance mediation. According to the Inspectorate, this is because remuneration is often paid even if no advice is given, relocation allowances in the form of commissions make up a large part of intermediaries' income, and in some cases the variable remuneration paid to advisers exceeds the fixed salary. The investigation covered endowment and pension insurance policies that were brokered within individual occupational pensions and not collectively agreed occupational pensions. FI will continue to monitor the market and may follow up on the management of conflicts of interest at individual firms engaged in insurance distribution.

Status update on RIS and FIDA

During the ongoing negotiations of the Retail Investment Strategy ("RIS"), the European Commission has now undertaken a review with a view to simplifying the regulatory framework. However, the former Polish Presidency of the Council of Ministers considered that the aims of the RIS were no longer being achieved and paused the negotiations for some time. The negotiations are now expected to resume under the Danish Presidency, which started on July 1, 2025.

Regarding the proposal for the Financial Services Transparency Regulation ("FIDA"), the European Commission has produced a revised proposal to limit data access rights and to strengthen EU technical coordination. At the same time, most Member States remain skeptical about the costs and administration that would be required to prepare the systems for sharing data.

EIOPA has launched consultations on new crisis management rules

The European Insurance and Occupational Pensions Authority ("EIOPA") has opened a round of consultations on several elements of the new crisis management framework (IRRD). The consultation covers, among other things, preventive recovery plans, the content of resolution plans, the identification of critical functions and the assessment of the resolvability of an insurance undertaking. The consultation will run until July 31, 2025.

The Government has produced a memorandum on new rules for payments from pension insurance

The memorandum proposes a number of exceptions to the condition that payments from a pension insurance policy must be made in the same or increasing amounts during the first five payment years. Instead, it is proposed that pensions may be paid out at a lower amount if the reduction is due to changes in actuarial assumptions, the levying of contributions under the insurance contract or changes in the number of payments per year. The changes are proposed to enter into force on January 1, 2026.

EIOPA surveys the insurance sector's use of generative AI

EIOPA has published a survey for the European insurance sector to respond to regarding the extent to which insurers have implemented, or are planning to implement, generative AI solutions in their businesses. In Sweden, FI conducted a cross-sectoral survey with a similar theme in 2024.

FI reviews the impact of extreme weather on insurance coverage

FI has announced the launch of an in-depth analysis of the impact of more frequent extreme weather on consumers' insurance cover.

EIOPA suspends ICT and outsourcing guidelines

Following the start of Dora's application, EIOPA repealed its ICT guidelines and the guidelines on outsourcing to cloud service providers as of January 17, 2025. The aim is to avoid double regulation between the guidelines and Dora.

Memorandum proposes transposition of the banking package

The Ministry of Finance has produced a memorandum proposing amendments to transpose changes to the Capital Requirements Directive. The main changes are that changes to board members and CEOs must be notified in advance to FI; that credit institutions, and in some cases also FI, must carry out suitability assessments of so-called key persons; that a special licensing requirement is introduced for companies outside the EEA; that a new application procedure for the acquisition of significant holdings and an adjusted licensing requirement for the execution of merger and division plans are introduced; and a new notification procedure for significant transfers of assets and liabilities. In addition, it is proposed to introduce a waiting period for certain employees and contractors at FI before they take up employment or an assignment with a supervised entity. The main part of the legislative amendments are proposed to enter into force on 11 January 2026. However, the rules on special licensing requirements for firms outside the EEA are not proposed to enter into force until 11 January 2027.

Decision to repeal the LVK

The Riksdag has voted through the Government's proposal to repeal the Act (2014:275) on Certain Consumer Credit Activities ("LVK"). As a result, as a general rule, only credit institutions will be able to engage in the business of providing and brokering consumer credit. The amendments entered into force on July 1, 2025. However, firms that are licensed under the LVK or operate under an exemption will be able to continue to conduct their business until 31 July 2026. If a firm has submitted an application for a license to FI by 31 July 2026, the firm can continue to conduct its business until the application has been finally assessed.

The Government proposes adjustments due to changes in the Crisis Management Directive

On May 27, 2025, the Government presented a bill regarding adaptations to the Resolution Act to amendments to the EU's Crisis Management Directive. The changes consist of financial firms that, according to the regulations, are to be placed in bankruptcy or liquidation instead of resolution not being subject to the resolution rules' requirements on own funds and eligible liabilities. It also means that liabilities issued by such firms will not be deducted when calculating how a resolution group meets the own funds and eligible liabilities requirement. The legislative amendments are proposed to enter into force on November 1, 2025.

The Swedish National Debt Office and the Riksbank in a joint approach to liquidity provision to banks in resolution

The Swedish National Debt Office and the Riksbank have developed a joint approach to liquidity provision to banks in resolution. Both authorities have certain powers to provide liquidity. They have now jointly specified the approach for such provision. Although the starting point is that a bank in resolution should be able to manage its liquidity on its own, situations may arise where this is not the case. In such cases, an assessment shall first be made of whether it may be sufficient for the Swedish National Debt Office to issue guarantees for new wholesale funding. Secondly, the Riksbank shall provide so-called emergency liquidity assistance, which means that banks can borrow directly from the Riksbank against adequate collateral. If adequate collateral cannot be provided, the Debt Office can issue guarantees for such loans. The main purpose of these arrangements is to ensure that taxpayers' money is not used to provide liquidity to the banks.

Debt Office calls for simpler crisis management rules

Together with the other Nordic resolution authorities, the Debt Office has called on the European Banking Authority for simpler and less complex rules for crisis management for banks. The Debt Office believes that the regulations need to be more principle-based and risk-oriented to give resolution authorities better conditions to be more operationally ready to manage banks in crisis.

The government proposes to introduce a register for tenant-owned apartments

In a draft bill, the government has proposed that a new register for tenant-owned apartments should be established and managed by Lantmäteriet. One of the main aims is to simplify the handling of pledges by making registration in the register the property law element, which would thus replace the existing requirement for notification to the housing cooperative. The legislative amendments relating to the establishment of the register are proposed to enter into force on January 1, 2026. The other amendments are proposed to enter into force on a date determined by the Government.

The Consumer Credit Inquiry has submitted its final report

The Consumer Credit Inquiry has submitted its report in the part concerning rules adapted to the changes in the EU Consumer Rights Directive. The proposals include changes to the rules on distance contracts. These consist of extended information requirements for traders and the provision of a withdrawal function directly in the trader's online interface. The new provisions are proposed to enter into force on 19 June 2026. The first part of the report, which concerned the transposition of the new Consumer Credit Directive, was submitted to the Government in October 2024 (the "Interim Report") and proposed, among other things, a licensing requirement also for firms that conduct credit granting or credit intermediation as a subsidiary part of their business.

In its consultation response, FI welcomes the proposal from the Interim Report that more types of loans, such as invoice purchases and "buy now, pay later" solutions, should be subject to a credit assessment requirement. The aim is to reduce the risk of consumers falling into debt traps. However, FI considers that the rules need to be clarified, particularly regarding which invoices and credit intermediaries are covered, in order to avoid legal uncertainty. The authority also calls for a better impact assessment of how many firms are affected by the changes.

In a supplementary consultation response to the Interim Report, FI also states that the proposed licensing requirements are disproportionate with regard to subsidiary credit intermediaries. FI believes that the proposed requirements on the suitability of the owners and management of such firms are too burdensome and that it would be a challenging task for the supervisory authority to take a position on whether the owners and management have the appropriate competence for the tasks that their firms are faced with apart from credit intermediation.

The European Banking Authority limits the scope of its ICT guidelines

Following the start of the application of the Digital Operational Resilience Regulation (Dora), the EBA has updated the scope of its ICT Guidelines, meaning that firms covered by Dora are no longer subject to the ICT Guidelines. However, some application remains for certain payment service providers that are exempt from the Payment Services Directive and thus Dora.

EBA clarifies the relationship between MICA and PSD2

In a No Action letter, EBA has clarified the application of Mica to crypto-asset service providers handling e-money tokens. According to Eba, providers that have been authorized to offer e-money token transfer services on behalf of consumers will not need a separate authorization as a payment institution until 2 March 2026. However, after that date, crypto-asset service providers will need to have applied to provide payment services. In addition, EBA states that certain other crypto-asset services, such as exchanging crypto-assets for regular currency, should not be considered payment services.

Government proposes changes to amortization requirements

As part of the Government's review of borrower-based macroprudential measures, the Government has proposed that the amortization requirements be revised. The original requirement will remain in place, which means that an amortization of 1% of the loan amount will continue to be required for loans with a loan-to-value ratio exceeding 50% but not 70% of the value of the home, and 2% when this loan-to-value ratio exceeds 70%. The tightened amortization requirement, which entails an additional 1 percent amortization if the mortgage exceeds 4.5 times the borrowers’ gross annual income, is instead proposed to be removed. In addition, it is proposed that the mortgage ceiling be raised from 85% to 90% when buying a new home. When increasing existing credit, the mortgage cap is proposed to amount to a maximum of 80% of the value of the home. The changes are proposed to enter into force on April 1, 2026.

Government proposes basic deduction for credit institutions

The Government has proposed that a new basic deduction, i.e. a deduction from the tax base to which all credit institutions are entitled, be introduced in the Act on Risk Tax for Credit Institutions. In combination with the proposed introduction of the basic deduction, it is also proposed that the tax rate be increased from 0.06% to 0.07% of the tax base. The changes are proposed to enter into force on January 1, 2026.

Government investigates further measures against over-indebtedness

The government has appointed a special investigator to consider further measures to reduce over-indebtedness. The main focus will be on reducing the number of so-called perpetual debtors. The concrete proposals that the investigator will consider include whether rules should be introduced on a changed settlement scheme for consumer receivables, an absolute statute of limitations for consumer receivables, changes to the rules on debt restructuring and a time limit for payment of newly concluded consumer credit agreements. The investigator is to report on the assignment by July 10, 2026.

FI presents the results of its supervision of institutions that issue covered bonds

The report shows that covered bond issuers remain resilient to declining market values in their covered bond cover pools. There have been no significant changes in the loan-to-value ratios in 2024, and the institutions are generally expected to be able to handle price declines of at least 30 percent.

FI proposes new regulations for debt collection

Since FI has taken over the supervisory responsibility for debt collection companies as of the turn of the year 2024, new regulations have been proposed. The regulations mainly deal with licence applications and rules on good debt collection practices. The new regulations are proposed to enter into force on 1 July 2025.

EBA clarifies the nature of shareholder contributions as Common Equity Tier 1 capital

The European Banking Authority ("EBA") has clarified in its Q&A which criteria a shareholder contribution needs to meet in order to qualify as CET1 capital under the Capital Requirements Regulation. The background to EBA's clarification is that the CRR states that CET1 capital must be available to the institution for unrestricted and immediate use to cover risks or losses as soon as they arise. The EBA position clarifies in relation to that rule that a shareholder contribution may not be subject to conditions that give a shareholder a right to repayment or that give a shareholder preferential treatment in dividend decisions. Consequently, conditional shareholder contributions may not, as a general rule, be included in Common Equity Tier 1 capital.

FI proposes new regulations for payment services and currency exchange

As a result of the proposed legislative amendments to the effect that currency exchange and all payment services, except account information services, will be subject to authorization, FI has updated its regulations to reflect this. The new regulations are proposed to enter into force on July 1, 2025.

New proposal on information obligation in the event of termination of interest rate discounts

FI has submitted a proposal for new general guidelines for institutions that offer mortgages. The proposal means that mortgage institutions should inform consumers when the interest rate discount on their mortgage expires. The new general guidelines are proposed to enter into force on July 1, 2025.

FI extends risk weight floors for Swedish mortgages and commercial real estate

FI has informed the European Commission and the European Systemic Risk Board (ESRB) that it intends to extend the current risk weight floor for Swedish mortgages by two years, starting on December 31, 2025. FI also intends to extend the current risk weight floor for commercial real estate by two years from September 30, 2025.

FI wants banks to inform consumers before the interest rate discount disappears

As of July 1, 2025, FI is introducing new general guidelines to the provision on good lending practice in section 6 of the Consumer Credit Act (2010:1846) that require mortgage firms to inform their customers in writing at least one month in advance before an interest rate discount on a mortgage expires. The aim is to strengthen consumer protection and give borrowers the opportunity to negotiate new terms before the interest rate is raised. FI emphasises that a lack of information can lead to customers unknowingly receiving higher interest rates, which reduces transparency on the mortgage market. The proposal is part of a broader review to improve competition and the position of consumers on the mortgage market.

FI conducts review of operational risk management

FI has announced that it has begun an in-depth analysis to identify the internal rules and procedures that credit institutions have for managing their operational risks. The background to this is that FI has the firms' ability to manage their basic tasks in an uncertain world as a priority area for 2025.

The Fund Market Inquiry has submitted its interim report

On May 16, 2025, the Fund Market Inquiry submitted an interim report to the Government. The interim report includes proposals to adapt Swedish law to the amendments to the directives on alternative investment fund managers and mutual funds, a review of certain rules on exchange-traded funds, the introduction of a new fund structure for institutional investors, a review of the rules on redemption frequency in mutual and special funds, and certain updates to Finansinspektionen's intervention options against fund management companies and alternative investment fund managers. In addition, the interim report contains proposals for harmonized rules regarding lending funds.

Part of the commission's directive was to develop proposals for a possible ban on lending to consumers through a fund structure. However, the inquiry does not take a position on such a ban, partly with reference to the change in the law that came into force on July 1, with the effect that the LVK was repealed and that direct credit can, as a general rule, only be granted by credit institutions. On the other hand, funds can engage in so-called indirect credit granting, i.e. by providing credit through, for example, a credit institution and then being acquired by a credit-managing fund. Whether such indirect lending to consumers should be prohibited is not something that the inquiry takes a position on, but it nevertheless submits proposals for such regulation, in accordance with its directive. The report is also clear that the same regulation on this issue should apply to both licensed and registered trustees. It thus remains to be seen how the government chooses to proceed with the proposal to ban indirect lending to consumers.

In connection with this, the government has extended the time for the parts of the fund market inquiry that relate to a new regulation of association law funds with variable share capital. The final report will instead be presented on November 30, 2025.

New proposal on taxation of certain returns from private equity funds

A report has been submitted to the government that submits proposals with the aim of ensuring that partners in private equity companies and who receive a special profit share are covered by the special rules for taxation of partners in closely held companies. The rules are also proposed to apply if the company in question constitutes an alternative investment fund. The new rules are proposed to enter into force on January 1, 2026.

Government proposes transposition of EU directive on shares with different voting values

The Government has presented a memorandum proposing that stock exchanges and securities institutions operating an MTF platform may not refuse to admit companies to trading on the platform on the grounds that the company issues shares with different voting rights. In addition, it is proposed that the exchange or investment firm will be obliged to identify such shares in accordance with certain standards to be adopted by the European Commission. The amendments are proposed to enter into force on December 5, 2026.

The Commission has issued a communication on the strategy for a savings and investment union

The Commission has set out its ambition and timetable for proposals on the strategy for the new savings and investment union. The various proposals planned to be put forward are divided into four areas: (i) citizens and savings, (ii) investment and finance, (iii) integration and economies of scale, and (iv) effective supervision in the single market.

The first initiative is a review of the regulatory framework for securitizations, which includes, among other things, easing reporting and capital requirements for securitizations. In addition, further initiatives can be expected in the context of the previously communicated Retail Investment Strategy, proposals to introduce an EU regulatory framework for investment savings accounts, recommendations on best practices in the area of pensions, relaxation of capital requirements for institutional investors to promote investment, and a review of the regulation of venture capital funds. The timetable extends until mid-2027.

Amendments on securities market regulatory relief have been adopted

Following amendments to the EU regulation and directive on markets in financial instruments, Parliament has adopted certain regulatory relief and transparency rules. Among other things, persons with direct electronic access who trade on their own account are exempt from licensing. In addition, non-financial entities that are participants in a regulated market or an MTF will not be required to obtain a license if they only execute transactions on the trading venue for their own or their group's liquidity management. In addition, certain reporting requirements are removed. The amendments will enter into force on September 29, 2025.

Guidance for supervision under the Mica Regulation

The European Securities and Markets Authority ("ESMA") has published guidance for European supervisors on how to apply the new crypto-regulation, the Mica Regulation, in a harmonized way across Member States.

Guidance on suitability assessment under the Mica Regulation

The FIN-FSA has announced that it will apply guidelines for the fit and proper assessment of members of the management bodies of asset-backed token issuers and crypto-asset service providers, as well as guidelines for the assessment of the suitability of shareholders holding qualifying holdings in such entities.

Statement on the suspension of the provision of certain crypto-assets

ESMA has published a statement reminding that crypto-asset service providers may not offer trading in asset-linked tokens and e-money tokens that do not comply with the requirements of the Mica Regulation. In addition, ESMA announces that such providers will be expected to notify their consumers of the new restrictions resulting from the MICA Regulation.

European Banking Authority launches consultation round on anti-money laundering framework

The EBA conducted a consultation round on four draft technical standards for the new AML Regulation. The technical standards relate to (i) the way in which the new Anti-Money Laundering Authority (AMLA) will determine which institutions will be subject to direct supervision at European level; (ii) the methodology to be used by national supervisors to assess the money laundering and terrorist financing risk of operators; (iii) the information, as well as the quality of the information, that operators should collect as part of their customer due diligence processes; and (iv) the criteria to be used by national supervisors when determining the sanctions to be imposed on operators that breach the AML framework. The consultation closed on June 6, 2025.

The European Banking Authority has developed new guidelines on sanctions compliance

FI has announced that it follows the EBA's guidelines for compliance with sanctions. The guidelines consist of, among other things, that financial firms should appoint a senior official responsible for compliance and that an exposure assessment should be carried out to identify and assess the areas of activity that are particularly vulnerable to sanctions and the circumvention of sanctions. The guidance will apply as of December 30, 2025.

Guidance on money laundering

The Money Laundering and Terrorist Financing Coordination Function has produced new guidance to help practitioners identify so-called "money mules". A "money launderer" is a person who launders money by lending their account to criminal actors.

New law on international sanctions

As a result of the new EU Sanctions Directive, Parliament has adopted a new law on international sanctions. The main changes consist of increased penalties and the introduction of a notification requirement for certain authorities. The law entered into force on June 10, 2025.

Commission wants to simplify sustainability rules

The European Commission has published several proposals for regulatory changes to simplify regulations related to sustainability, the so-called Omnibus proposal. The proposal includes regulatory relief in the Corporate Social Responsibility Directive (CSRD) and the Taxonomy Regulation, among others. The aim is to strengthen the competitiveness of European companies. In connection with this, the government has proposed that the obligation to report on sustainability for, among others, large companies with fewer than 500 employees and small and medium-sized listed companies be postponed by two years.

Administrative Court sets penalty fee against the Church of Sweden's occupational pension association

In its judgment of 8 April 2024, the Administrative Court confirmed a fine that Finansinspektionen had imposed on the Church of Sweden's occupational pension association due to the association's lack of established risk tolerance limits for its investments. The association did have a limit in its guidelines to the effect that an individual holding may not exceed ten percent of the market value of the total assets in the portfolio in question. However, this limit could be waived by special decision of the Board's Executive Committee in individual cases. This possibility to deviate from the ten percent limit means, according to the Administrative Court, that the association in practice lacked such a risk tolerance limit as required by the Swedish Financial Supervisory Authority's occupational pension regulations. The Administrative Court's judgment has been appealed by the association to the Administrative Court of Appeal.

Patent and Market Court prohibits terms on fees for quick loans

The Consumer Ombudsman brought an action against the company 4finance before the Finnish Patent and Market Court for its terms and conditions that charged extra fees in cases where a borrower wanted immediate payment. If the extra fee was not paid, the borrower had to wait at least a week for payment. The Patent and Market Court found that there was no reason for 4finance to delay payment and that its borrowers belonged to a vulnerable target group. As a result, was granted an injunction against the contractual term combined with a fine of SEK 2 million if the company did not comply with the injunction.

Patent and Market Court prohibits certain contract terms linked to private leasing

The Consumer Ombudsman brought an action against DNB for certain contractual terms that the bank had used in relation to increasing leasing fees. The Patent and Market Court agreed with the Consumer Ombudsman on the issue of the clause describing the conditions under which DNB could increase the leasing fee during the current contract period. The Court held, inter alia, that it was not sufficiently clear from the condition that it was mutually binding, i.e. that DNB was also obliged to reduce the leasing fee if its financing costs went down. However, the Patent and Market Court rejected the Consumer Ombudsman's request to prohibit the variable leasing fee and the three-year commitment period.

FI has announced its supervisory priorities for 2025

The priorities in 2025 will be:

Whether firms are able to perform their basic tasks in an uncertain environment. Whether consumers are offered "good" products and services. How the financial sector counters money laundering and other crime. Whether household debt risks a healthy and stable financial market.

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FI imposes a financial penalty on Dina Försäkringar

FI issues a reprimand to Dina Försäkringar with a sanction fee of SEK 10 million. The reason for this is that Dina has not complied with the corporate governance requirements set out in the Solvency II regulations. The deficiencies have consisted of the actuarial function not being able to perform its tasks in an independent manner, and the internal audit and compliance functions not performing the tasks they were obliged to perform under the Solvency II regulations.

FI revokes Intergiro's license

The Swedish Financial Supervisory Authority has revoked Intergiro's license to issue electronic money because the company has not complied with key provisions of the Money Laundering Act. The deficiencies consist of the fact that Intergiro has not complied with the requirements for its general risk assessment, that measures to achieve customer due diligence have been insufficient and that the requirements for reporting suspicious transactions to the Police have not been complied with. FI has also decided on a wind-down plan that applies immediately, which was upheld by the administrative court. The operations must therefore be wound up by September 19, 2025.

FI imposes a financial penalty on Swedbank

FI has determined that Swedbank has violated provisions in the Security Protection Act (2018:585) regarding the obligation to conduct security protection analyses for its operations. Consequently, Swedbank has been notified of a penalty fee of SEK 12,500,000.

FI writes off investigation of Swedbank

In another supervisory case, FI has investigated how Swedbank measures its market risks and how its internal model for calculating capital requirements for these risks relates to the requirements in the Capital Requirements Regulation. The case was initiated in 2021 and, in the meantime, Swedbank has taken certain measures, as a result of which FI has not identified any deficiencies that could lead to further measures from the authority.

FI closes investigation of Coeli Asset Management

Finansinspektionen concludes its investigation of Coeli Asset Management, which examined the company's ability to identify, manage and disclose its conflicts of interest. FI announced that certain observations were made during the investigation period, but that the company has taken measures to rectify such deficiencies. Consequently, FI has written off the case.

FI issues a reprimand to the Swedish Pensions Agency

FI issues a reprimand to the Swedish Pensions Agency due to inadequate risk control in relation to the agency's investments in Heimstaden Bostad AB. For the Swedish Pensions Agency's operations, a reprimand is the most stringent intervention measure that FI can resort to. FI is of the opinion that the Swedish Pensions Agency has taken measures to gain knowledge of the circumstances that affect the risk of loss of invested funds, but that these measures have not been sufficient. The risks that FI points out in particular concern differences in incentives and influence between the owners, the agreed price of shares and the obligation to reinvest funds in the company. The intervention against the Swedish Pensions Agency is the first that FI has announced as a result of the inspection's investigations into several insurance companies' and occupational pension companies' investments in Heimstaden Bostad. The investigations into KPA Pension, Folksam and Alecta are still ongoing.

FI closes investigation of Santander

FI has reviewed Santander's management of the risk of being used to finance terrorism. FI announced that certain observations were made during the review period but that the company has taken measures to rectify such deficiencies. Consequently, FI has closed the case.

FI closes investigation into Brocc Finance

The Inspectorate has investigated whether Brocc Finance has assessed the repayment capacity of individual consumers to the extent required to ensure that the consumer can maintain a reasonable standard of living after a credit has been granted. The investigation has not revealed any infringements, and FI has therefore closed the case.

FI investigates banks that use guarantees as credit risk protection

FI has announced that four banks and one credit market company are to be investigated with regard to whether they have complied with the rules in the Capital Requirements Regulation concerning calculations of risk-weighted exposure amounts and large exposures when they have used the National Board of Housing, Building and Planning's credit guarantee as so-called eligible unpaid credit risk protection.