Law (2015:1017) Concerning The Prevention Of State Aid To Credit Institutions

Original Language Title: Lag (2015:1017) om förebyggande statligt stöd till kreditinstitut

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now

Read the untranslated law here: http://rkrattsbaser.gov.se/sfst?bet=2015:1017

/Entry into force: 2016-02-01/

Chapter 1. Introductory provisions



section 1 of the Act contains provisions on the 1. preventive State aid to credit institutions referred to in the Act (2004:297) on banking and finance law, and 2. a special fund for the financing of such assistance and of State aid within the meaning of Chapter 22. Act (2015:1016) for resolution.



2 § if necessary to prevent a serious disturbance of the financial system in Sweden, State aid may be given preventive to credit institutions. Such support can be provided through guarantees or recapitalisation.



Preventive State aid can also be made through the guarantees for the repayment of liquidity support that the Riksbank to credit institutions.



paragraph 3 of the Decision on preventing State aid within the meaning of this law are made by the



1. the Government, or



2. the authority that the Government determines the (aid agency).



section 4 of the Prevention of State aid to credit institutions is left after the agreements on assistance concluded between the State and the beneficiary or its owner.



Guarantees referred to in paragraph 2 may be made by agreement between the Riksbank and the Government or aid agency.



Chapter 2. Conditions of preventive State-aid section 1 Prevention of State aid may only be granted for the continued activities of the credit institution which is viable.



Aid must be temporary and be proportionate to the extent of the serious interference referred to in Chapter 1.

2 §.



Support the authority will face a decision on State aid prevention, to undertake an assessment of the credit institution in accordance with Chapter 7. Act (2015:1016) for resolution.



2 § aid shall as far as possible be designed in a business-like manner and to prevent a distortion of competition. The State's long-term costs of the aid shall be kept as low as possible. The aid shall be designed so that the State's efforts as far as possible can be restored.



The State shall receive remuneration or other compensation for their risk-taking, unless special reasons speaking against it.



If there are serious reasons, the derogations may be made from the provisions on fees in Chapter 6. paragraph 4 of the budget law (2011:203).



Chapter 3. The Stability Fund



Article 1 for the purposes of Chapter 1. § 2 there shall be an interest-bearing account at the national debt Office. The funds added to your account, together with the other assets procured under this Act, the Stability Fund.



Should be kept to the Stability Fund



1. paid-in payments for preventive State aid within the meaning of Chapter 2. section 2,



2. assets acquired with funds from the Stability Fund, and 3. funds the State received back and which relate to the left support in accordance with this Act and the law (2008:812) about State guarantees to depositors in foreign branches of the institution in Sweden.



The Government or the authority that the Government may provide for the management of the Fund's assets.



section 2 of the funds from the Stability Fund will cover:



1. State expenditure for support under this Act,



2. State expenditure to finance state aid within the meaning of Chapter 22. Act (2015:1016) concerning resolution,



3. support the Authority's administrative costs, and



4. compensation paid by reason of a guarantee to depositors under the Act (2008:812) about State guarantees to depositors in foreign branches of the institution in Sweden.



Decision to use the funds from the Stability Fund to cover the expenditure referred to in the first subparagraph 2 shall only be taken by the Government.



section 3 of the extent to which the funds of the Stability Fund is not sufficient for the purposes set out in section 2, the lease is up at the national debt Office with a maximum of the amount that the Swedish Parliament has decided in a special authorization. Such loans may be collected even if there are other assets in the Stability Fund than the funds on account in the national debt.



Chapter 4. Final provisions section 1 the credit institution shall disclose the information to the Government and support the authority that they need for their activities under this Act.



section 2 of the Riksbank and finansinspektionen shall, on request, provide support authority the information necessary for its activities under this Act. Within the Swedish national debt Office applies the corresponding obligation vis-à-vis the support agency for the portion of the national debt that do not operate under this law.



paragraph 3 of the Payments Authority shall inform the financial supervision authority, if a credit institution does not comply with its obligations under agreements entered into pursuant to this Act.



paragraph 4 of Decision under this law may not be appealed.



section 5 of the Government or the authority that the Government may provide for assistance under this Act.



Transitional provisions



2015:1017



1. this law shall enter into force on 1 February.



2. this law repeals Act (2008:814) concerning State aid to credit institutions.



3. For assistance to be provided under the law on State aid to credit institutions, the law continue to apply.



4. stability fee for 2015 to be charged under the law on State aid to credit institutions. Thereafter, the stability fee is not charged.