News on financial regulation July–October 2026

Request for a review of the regulatory framework for pension agreements with full repayment protection

The Swedish Tax Agency and the Swedish Financial Supervisory Authority have submitted a joint request to the Ministry of Finance (FI ref. no. 26-12840, SKV ref. no. 8-187756-2026). The purpose of the request is for an inquiry to review the commercial and tax law regulations governing pension agreements with full repayment protection. The background to this is that, under current practice in Sweden, both an element of risk and risk pooling within an insurance collective are required for a contract to be classified as life insurance; the authorities believe this creates system-wide demarcation problems, as the proportion of contracts without any actual element of risk has increased gradually. The authorities wish the inquiry to consider how contracts with full repayment protection should be treated under commercial and tax law, and in particular to investigate whether Sweden should now introduce an insurance class for contracts without risk content, as permitted under EU law.

This request has not yet led to any visible decision regarding an inquiry or referral by the Ministry of Finance.

EIOPA proposes common minimum standards for insurance guarantee schemes (IGS) in the EU

Policyholders within the EU currently enjoy varying levels of protection when insurance companies fail, as national guarantee schemes differ significantly in scope and coverage – and are entirely absent in some countries. On 1 September 2026, EIOPA submitted its technical advice to the European Commission on common minimum standards for such guarantee schemes, following a request from the Commission, providing a balanced assessment of where common standards are needed and where national flexibility should be maintained. The proposals include harmonisation of the products to be covered, common trigger events and timeframes for claims and payouts, as well as minimum requirements for liquidity protection whilst maintaining national flexibility regarding the form of funding. This advice is a preparatory step ahead of a forthcoming legislative proposal from the Commission.

EIOPA publishes further instruments for the implementation of the IRRD

EIOPA has published seven further instruments – four guidelines and three technical standards – for the implementation of the Insurance Recovery and Resolution Directive (IRRD), which is expected to come into force in 2027. With this, EIOPA has submitted 15 of a total of 19 instruments that the authority has been tasked with developing.

Update: Electronic communications in insurance contracts

The consultation period ended on 28 August 2026. Among the bodies that responded were the Swedish Financial Supervisory Authority, the Swedish Consumer Agency, the Swedish Data Protection Authority and the Swedish Insurance Federation. The matter will now proceed to further consideration within the Ministry of Justice ahead of a forthcoming referral to the Council on Legislation and a government bill.

Committee proposes measures to tackle over-indebtedness

A government inquiry has been tasked with proposing measures to reduce the problem of over-indebtedness, primarily through measures that can reduce the number of people in long-term over-indebtedness, including amendments to the Debt Restructuring Act, a revised settlement scheme for consumer debts, rules on absolute limitation periods for consumer debts, and a time-delay provision for recently concluded consumer credit agreements.

The inquiry proposes several changes to the debt restructuring procedure and the introduction of a special settlement scheme for overdue consumer debts, with the aim of enabling more people with long-term debt to resolve their debt situation. The report (SOU 2026:43) has been out for consultation since 23 July 2026.

The EBA proposes new requirements for operational risk management under CRR3

The EBA has launched a public consultation on draft regulatory technical standards specifying the framework for operational risk management that institutions must have in place in accordance with Article 323 of the Capital Requirements Regulation (CRR3). The draft contains harmonised, proportionate requirements regarding governance, the risk management process and systems for identifying, assessing, monitoring and managing operational risk. The consultation runs until 31 December 2026. Institutions with a business indicator below EUR 750 million are granted relief in the form of a lower frequency of reviews and reporting, as well as less detailed requirements regarding data and taxonomy.

Swedish Financial Supervisory Authority: the three major banks and Nordea Hypotek remain classified as other systemically important banks

In accordance with the EBA’s guidelines, the Swedish Financial Supervisory Authority has identified SEB, Handelsbanken, Swedbank and Nordea Hypotek as other systemically important institutions (O-SIIs) in Sweden for 2026. The banks must continue to maintain a capital buffer requirement of 1 per cent of Common Equity Tier 1 capital. This year, Nordea Hypotek received 408 O-SII points under the EBA’s methodology, which exceeds the recommended threshold of 350 points for automatic identification as a systemically important bank.

FI adopts new rules on consumer credit following the EU Consumer Credit Directive

On 13 October 2026, the Swedish Financial Supervisory Authority (FI) adopted new regulations on activities relating to residential mortgages and certain other forms of consumer credit (FFFS 2026:31), which apply to firms under FI’s supervision that engage in lending, credit intermediation and advisory services in this area. On the same day, the Board adopted new general guidelines on credit in consumer relationships (FFFS 2026:32), linked to the new Consumer Credit Act (2026:1011). The regulations govern, amongst other things, licence applications, operational requirements, ownership and management assessments, and knowledge requirements. The general guidelines specify, amongst other things, what information on income, expenditure and debts should be collected during credit assessments and how this information should be verified. Both sets of regulations come into force on 20 November 2026 and replace previous regulations in this area.

New rules on prospectuses come into force

From 16 August 2026, new rules on prospectuses will apply, following amendments to Delegated Regulation (EU) 2019/980. New annexes (checklists) are also being introduced for both equity and non-equity securities. The amendments introduce additional formatting requirements for certain types of prospectuses, such as the requirement that information be presented in a specific order.

Update: ESMA adds further prospectus rules linked to the listing document

On 9 September 2026, ESMA published a further package of material under the Prospectus Regulation to reflect the amendments to the Listing Regulation. The package includes a consultation on updated guidelines on disclosure requirements, updated questions and answers on prospectuses, final guidelines on supplements introducing new securities into a base prospectus, and a final report updating technical standards on key financial information in prospectus summaries. The consultation on disclosure requirements is open until 9 November 2026, whilst the final guidelines on supplements will apply two months after publication in all EU languages.

EBA, EIOPA and ESMA propose simplified rules for bilateral margin requirements for OTC derivatives

The European supervisory authorities EBA, EIOPA and ESMA have published a final report containing proposals for regulatory technical standards designed to simplify the bilateral margin requirements set out in the European Commission’s Delegated Regulation (EU) 2016/2251. The proposal means that counterparties below the EMIR threshold of €8 billion for the exchange of initial margin will no longer be required to exchange such margin for either new or existing non-cleared OTC derivative contracts, unlike at present, where the exemption applies only to new contracts. The final report has been submitted to the European Commission for approval, and the standards will then be scrutinised by the European Parliament and the Council before they can be published.

ESMA urges firms to finalise preparations for the transition to T+1 settlement

ESMA has published a statement setting out key deadlines and action points for firms ahead of the transition to a one-day settlement cycle (T+1), which comes into force on 11 October 2027. According to ESMA, readiness surveys indicate a generally good and increasing level of awareness of the transition, but the degree of implementation continues to vary across different markets, sectors and firms within the EU.

ESMA highlights two key deadlines: 7 December 2026 for requirements regarding faster and more standardised handling of allocations and confirmations, and 11 October 2027 for requirements to optimise the settlement process itself, including through earlier instructions to central securities depositories and wider use of functions such as automatic partial settlement.

ESMA emphasises that no single participant can be prepared in isolation – even if a company’s own systems are in order, the transition may still fail if a counterparty, custodian or central securities depository in the chain is not prepared. Companies are therefore urged to also check the preparedness of their counterparties, custodians, central securities depositories and other service providers, in order to minimise the risk of disruptions when T+1 comes into force.

AMLA sets standards for supervisory cooperation ahead of direct supervision

The Anti-Money Laundering Authority (AMLA) has published the rules governing cooperation with national financial supervisory authorities to select and directly supervise some of the most significant cross-border financial institutions within the EU. The rules cover how institutions are selected, how supervisory responsibility is transferred between the national and EU levels, and how AMLA and national supervisory authorities are to cooperate.

From 2028, the AMLA will directly supervise some of the most significant cross-border financial institutions at group level, a task that has hitherto been the sole responsibility of national supervisory authorities. The standards set out a clear selection process: national supervisory authorities collect and quality-assure data, whilst AMLA carries out the risk assessment and makes the final selection, which is published on the authority’s website. Upon a transfer of supervisory responsibility, the transferring authority must hand over the institution’s complete supervisory history.

AMLA finalises key technical standards for the private sector

The AMLA has finalised three sets of regulatory technical standards (RTS) which define key measures that firms and professionals must implement to mitigate the risks of money laundering and terrorist financing. The standards cover how to distinguish between business relationships and one-off transactions and how to identify linked transactions, what information must be collected and verified as part of customer due diligence, and minimum requirements for group-wide arrangements relating to governance, risk management, internal control and secure information sharing.

The standards have been developed in close cooperation with national supervisory authorities and on the basis of feedback from a broad range of stakeholders through written consultations and hearings. The final proposals have now been submitted to the European Commission, and it is proposed that they come into force six months after their adoption.

FI publishes questions and answers on the new anti-money laundering package

On 13 October 2026, the Swedish Financial Supervisory Authority published an initial set of questions and answers on the new anti-money laundering package and the EU’s anti-money laundering authority, AMLA.

The content covers general and fundamental issues, with the aim of providing firms under the Swedish Financial Supervisory Authority’s supervision with comprehensive and easily accessible information on the changes that lie ahead. FI intends to regularly supplement and update the questions and answers as the regulatory framework develops and new details regarding the anti-money laundering package become available.

EBA, EIOPA and ESMA on AI-related ICT risks

The European supervisory authorities EBA, EIOPA and ESMA have published a statement calling for a cross-sectoral, risk-based and consistent supervisory approach to address the ICT risks arising from cutting-edge (‘frontier’) AI models. The authorities set out measures that can help financial firms strengthen their operational resilience against cyber risks linked to these AI models, with particular emphasis on preventing, detecting and managing the risks, and provide an update on ongoing and planned supervision under DORA of critical ICT third-party providers (CTPPs). The authorities urge both financial firms and competent authorities to use the statement as a starting point for a supervisory dialogue.

ESMA’s requirements regarding the knowledge and competence of staff at crypto firms come into force

ESMA’s guidelines on knowledge and competence requirements for staff providing information or advice on crypto-assets at crypto-service providers came into force on 28 July 2026. Authorised CASP firms must therefore be able to demonstrate that the relevant staff have sufficient knowledge and competence for their duties.

The European Commission adopts the revised sustainability reporting standards (ESRS))

Following on from the consultation previously reported, the European Commission adopted two delegated acts on 3 July 2026: the revised version of the European Sustainability Reporting Standards (ESRS), and a new voluntary sustainability reporting standard (VS) for smaller companies that receive requests for information from larger business partners. The revised standards entail a significant reduction in the number of mandatory data points, a clearer materiality assessment and greater flexibility, as part of the Commission’s Omnibus simplification agenda. The revised ESRS are to be applied to financial years beginning on 1 January 2027 or later, with the option of voluntary early application for the 2026 financial year. The delegated acts were published on 22 September in the Official Journal of the European Union.

The Patent and Market Court of Appeal (PMÖD) prohibits 4finance’s direct payment fee on the grounds that it contravenes the Consumer Credit Act

The Patent and Market Court of Appeal (PMÖD) has, like the Patent and Market Court, found that the lender 4finance AB has charged a direct payment fee that contravenes the Consumer Credit Act and that the contractual term must be prohibited. The court noted that, in today’s credit sector, disbursements normally take place within seconds of a credit assessment and decision, and that it is not acceptable to categorise rapid disbursement as a chargeable additional service when a longer disbursement time is solely due to circumstances on the part of the lender itself. The Supreme Administrative Court found that 4finance had deliberately delayed the payment date in order to charge the fee for immediate payment, and that the fee did not correspond to any actual cost incurred by the company. The amount of the penalty was reduced from 2 to 1 million kronor compared with the lower court’s judgment.

Supreme Court: insurance company not obliged to pay compensation in cases of suspected money laundering

In Case T 2545-25, the Supreme Court has ruled that an insurance company may refuse to pay out insurance compensation if the company has reasonable grounds to believe that the claim was made for the purpose of money laundering, as a payout could otherwise result in the company’s employees committing commercial money laundering through reprehensible risk-taking. It is not necessary for the property to be linked to a criminal offence; rather, it is sufficient that the circumstances, taken together , are objectively such that money laundering can be suspected. The burden of proof for this, however, lies with the insurance company, subject to the same standard of proof as normally applies in civil proceedings.

The Swedish Financial Supervisory Authority concludes its investigation into Ica Bank; no shortcomings found in credit assessments

The Swedish Financial Supervisory Authority has examined whether Ica Bank’s credit assessments of consumers who applied for unsecured loans were adequate. The review covered individual credit files, the bank’s policy and instructions, and an on-site visit to the bank. As the investigation revealed no shortcomings, the Swedish Financial Supervisory Authority has closed the case without taking any action.

The Swedish Financial Supervisory Authority concludes its investigation into MedMera Bank; no shortcomings found in credit assessment

The Swedish Financial Supervisory Authority (FI) launched an investigation into how MedMera Bank AB assesses consumers’ ability to repay unsecured loans. Having reviewed individual credit files, the bank’s internal policies and instructions, and carried out an on-site visit, FI was unable to identify any shortcomings in the credit assessment process, and the case has now been closed without further action.

The Swedish Financial Supervisory Authority concludes its investigation into Infinipi following the revocation of its licence

The Swedish Financial Supervisory Authority has concluded its investigation into how Infinipi AB has complied with the rules on capital requirements for payment institutions. In June 2026, the company itself requested to relinquish its authorisation to provide payment services, whereupon the Swedish Financial Supervisory Authority revoked the authorisation. As Infinipi is therefore no longer a payment institution, there are no grounds to continue the investigation, and the case has been closed.

FI issues AIFM Capital with a warning and an administrative fine

The Swedish Financial Supervisory Authority has issued a warning and a penalty fee of 2 million kronor to AIFM Capital AB following an investigation which revealed that the company had breached fund regulations during the period January 2021 to September 2023. The breaches relate to the company’s inadequate handling of delegated fund management agreements – both at the time the agreements were entered into and when monitoring whether fund unit holders had received a sufficient return in relation to the risk profile.