Chapter 1. Introductory provisions
The scope of the law
section 1 of this Act provides for special supervision of
financial conglomerates. What is meant by financial
conglomerate can be seen from Chapter 2.
Provisions of this Act shall, in accordance with Chapter 3. 3 § in certain cases
also apply to institutions and insurance companies.
For a decision on the application of certain provisions of the 2 and 3
Cape. It is required that the FSA pursuant to Chapter 6. paragraph 2 of the first
the paragraph has agreed with foreign relevant competent
authorities on the content of the decision.
Special provisions for the European company and the European cooperative
§ 2 in the case of the European company and the European cooperative society with such a
the management system referred to in articles 39-42 of the Council
Regulation (EC) No 2157/2001 of 8 October 2001 on the Statute
for the European company or articles 37-41 of Council Regulation (EC)
No 1435/2003 of 22 July 2003 on the Statute for a European
cooperative society (SCE)
the provisions of Chapter 6. 7 and 9 section of Board members on
members of the Supervisory Board.
The second paragraph of section 16 of the Act and section 22 (2004:575) on the European company
and paragraph 21 and section 26 of the Act (2006:595) about
the European cooperative society States that the provisions concerning
Board members in the first paragraph shall also apply to
members of a European company or European cooperative
the management or administrative organ. Law (2006:613).
Definitions
3 §/expires U: 2016-01-01/
In this law means
1. aifm: a Swedish alternative
investment funds under Chapter 1. section 3 of the Act (2013:561) if
managers of alternative investment funds,
2. affiliated companies: a Swedish or foreign company whose 1
main business is owning or managing
property, managing data-processing services or pursue other
similar activity which is ancillary to the main
the activities of one or more credit institutions,
securities companies or equivalent foreign companies,
3. competent authority: financial supervisory authority or any other
authority in the EEA, supervising, individually or in
group level, over a regulated company headquartered in
EEA,
4. mixed financial holding company shall mean a parent undertaking, other
is not a regulated company and who, together with their
subsidiaries, at least one of which is a regulated company with
Headquarters in the EEA, and other companies constitutes a financial
conglomerate,
5. EEA: European economic area,
6. financial institution ' means an undertaking which is not a
credit institutions, securities companies, fund management companies, or
Aifm or equivalent foreign company and whose
main activity is to
a) acquire shares or units,
b) operate one or more of the activities referred to in Chapter 7.
1 section 2 – 10, 12 and 15 Act (2004:297) on banking
and financing business without being licensed
According to Chapter 2. section 1 of that Act, or
c) operate securities operations without being licensed
According to Chapter 2. section 1 of the Act (2007:528)
the securities market,
7. financial sector: one or more
of the following companies
(a)) credit institutions, securities companies, fund management companies,
Aifm or equivalent foreign companies as well as
financial institutions and affiliated companies (banking and
the securities sector),
b) insurance undertakings or the equivalent foreign corporations and
insurance holding companies (insurance sector), and
c) mixed financial holding companies,
8. the Fund management company: a Swedish limited liability company authorized
to operate the Fund operations under the Act (2004:46) about
mutual funds,
9. insurance company "means an insurance company, mutual
insurance company or an insurance Association under
the insurance business Act (2010:2043)
10. insurance holding company means a parent undertaking, other than
an insurance undertaking or a corresponding foreign
company or a mixed financial holding company and whose
principal activity is to acquire and manage participations
in subsidiaries of which are either exclusively or mainly
the insurance company or the equivalent foreign companies,
11. institution: credit institutions, securities companies, fund management companies
and aifm,
12. the conglomerates directive: European Parliament and Council
Directive 2002/87/EC of 16 december 2002 on the supplementary supervision
of credit institutions, insurance undertakings and investment firms
in a financial conglomerate and amending Council directives
73/239/EEC, 79/267/EEC, 92/49/EEC, 92/96/EEC, 93/6/EEC and
93/22/EEC and European Parliament and Council Directive 98/78/EC
and 2000/12/EC, as last amended by European Parliament and
Council Directive 89/EU,
13. credit institution: a bank or a credit market company
According to the law on banking and finance law,
14. regulated companies:
(a)) an institution or an equivalent foreign company,
or
b) an insurance undertaking or a corresponding foreign
companies.
15. the relevant competent authority:
a) a competent authority of a
banking group, insurance group or a
equivalent foreign group that is included in a financial
conglomerates, particularly over the company that is the parent
the parent company of the banking and securities sector and
the insurance sector,
b) any other competent authority than referred to in (a) designated
to the Coordinator of a financial conglomerate, or
c) any other competent authority as the authorities referred to
in (a) and (b) agree on is relevant,
16. the Coordinator "means the competent authority pursuant to Chapter 4.
responsible for the supervision of financial conglomerates,
17. the sectoral provisions: the provisions of the law and other
provisions applicable to the movement that is powered by
institutions and insurance companies, and
18. investment companies: a Swedish Corporation that has a
a licence to operate in accordance with the Act on securities operations
securities market. Team (2013:670).
3 section/entry into force: 01/01/2016
In this law means
1. aifm: a Swedish alternative
investment funds under Chapter 1. section 3 of the Act (2013:561) if
managers of alternative investment funds,
2. affiliated companies: a Swedish or foreign company whose
main business is owning or managing
property, managing data-processing services or pursue other
similar activity which is ancillary to the main
the activities of one or more credit institutions,
securities companies or equivalent foreign companies,
3. competent authority: financial supervisory authority or any other
authority in the EEA, supervising, individually or in
group level, over a regulated company headquartered in
EEA,
4. mixed financial holding company shall mean a parent undertaking, other
is not a regulated company and who, together with their
subsidiaries, at least one of which is a regulated company with
Headquarters in the EEA, and other companies constitutes a financial
conglomerate,
5. EEA: European economic area,
6. financial institution ' means an undertaking which is not a
credit institutions, securities companies, fund management companies, or
Aifm or equivalent foreign company and whose
main activity is to
a) acquire shares or units,
b) operate one or more of the activities referred to in Chapter 7.
1 section 2 – 10, 12 and 15 Act (2004:297) on banking
and financing business without being licensed
According to Chapter 2. section 1 of that Act, or
c) operate securities operations without being licensed
According to Chapter 2. section 1 of the Act (2007:528)
the securities market,
7. financial sector: one or more
of the following companies
(a)) credit institutions, securities companies, fund management companies,
Aifm or equivalent foreign companies as well as
financial institutions and affiliated companies (banking and
the securities sector),
b) insurance undertakings or the equivalent foreign companies,
companies and special purpose vehicles
(insurance sector), and
c) mixed financial holding companies,
8. the Fund management company: a Swedish limited liability company authorized
to operate the Fund operations under the Act (2004:46) about
mutual funds,
9. insurance company "means an insurance company, mutual
insurance company or an insurance Association under
the insurance business Act (2010:2043)
10. insurance holding company means a parent undertaking, other than
an insurance undertaking or a corresponding foreign
company or a mixed financial holding company and whose
principal activity is to acquire and manage participations
in subsidiaries of which are either exclusively or mainly
the insurance company or the equivalent foreign companies or
Special purpose vehicles,
11. institution: credit institutions, securities companies, fund management companies
and aifm,
12. the conglomerates directive: European Parliament and Council
Directive 2002/87/EC of 16 december 2002 on the supplementary supervision
of credit institutions, insurance undertakings and
investment firms in a financial conglomerate and of
amending Council Directives 73/239/EEC, 79/267/EEC, 92/49/EEC,
92/96/EEC, 93/6/EEC and 93/22/EEC and European Parliament and
Council Directive 98/78/EC and 2000/12/EC, as last amended by
European Parliament and Council directive of the EU,
13. credit institution: a bank or a credit market company
According to the law on banking and finance law,
14. regulated companies:
(a)) an institution or an equivalent foreign company,
or
b) an insurance undertaking or a corresponding foreign
company or a special purpose vehicle,
15. the relevant competent authority:
a) a competent authority of a
banking group, insurance group or a
equivalent foreign group that is included in a financial
conglomerates, particularly over the company that is the parent
the parent company of the banking and securities sector and
the insurance sector,
b) any other competent authority than referred to in (a) designated
to the Coordinator of a financial conglomerate, or
c) any other competent authority as the authorities referred to
in (a) and (b) agree on is relevant,
16. the Coordinator "means the competent authority pursuant to Chapter 4.
responsible for the supervision of financial conglomerates,
17. the sectoral provisions: the provisions of the law and other
provisions applicable to the movement that is powered by
institutions and insurance companies, and
18. investment companies: a Swedish Corporation that has a
a licence to operate in accordance with the Act on securities operations
securities market. Law (2015:720).
Group and participation
4 of a company is the parent company and another legal entity is
subsidiaries, parent company
1. holds more than half of the votes of all the shares or
shares of the legal entity,
2. own shares or units of the legal person and on
because of agreements with other partners in this disposes of more than
half of the votes for all shares or units,
3. own shares or units of the legal entity and have
the right to appoint or remove more than half of the members of the
its Board of directors or equivalent governing body, or
4. own shares or units of the legal entity and have
the right to solely exercise a dominant influence over this on
because of the agreement with the legal entity or by
provision in its articles of Association, partnership agreements or
comparable bylaws.
Furthermore, a legal entity, subsidiaries of its parent undertaking,
If the other subsidiaries of its parent undertaking or
the parent company, together with one or more other
subsidiaries or other subsidiaries together
1. holds more than half of the votes of all the shares or
shares of the legal entity,
2. own shares or units of the legal person and on
because of agreements with other partners in this disposes of more than
one half of the voting power of the shares or units, or
3. own shares or units of the legal entity and have
the right to appoint or remove more than half of the members of the
its Board of directors or equivalent governing body.
If a subsidiary owns shares in a legal
person and because of the agreement with the legal entity or
because of a provision in its articles of Association, partnership agreements or
similar statutes have the right to solely exercise a
control of that legal entity, is also
This subsidiary of the parent undertaking.
§ 5/expires U: 2016-01/01/It is a participating interest if
1. a legal person's associates to a company
According to Chapter 1. paragraph 5 of the annual accounts Act (1995:1554), or
2. a company directly or indirectly owns at least 20 per cent of
capital or of the voting rights in another undertaking.
§ 5/entry into force: 01/01/2016/there is a participating interest if
1. a legal person is an associate or a jointly controlled entity referred to in Chapter 1. 5 and 5 a of the annual accounts Act (1995:1554), or
2. a company directly or indirectly owns at least 20 per cent of the capital or of the voting rights in another undertaking.
Law (2015:825).
section 6, in the cases referred to in paragraph 4(1), 1-3
subparagraph, and paragraph 5 of the rights of any
acting in his own name but on behalf of another natural or legal
person's behalf shall be deemed to accrue to the person.
When the number of votes in a subsidiary or a company according to
§ 5 are determined, not the shares or units of the respective
company held by the company itself or by its
subsidiary undertaking to be taken into account. The same applies to shares
the possession of the person acting in his own name but for any of the
companies or their subsidiaries ' behalf.
Group
section 7 of the Group of companies included a parent undertaking, its
subsidiaries, parent company, or a company
subsidiaries has shareholding in and businesses that have a
common or essentially unified leadership.
Companies have joint or in essence joint management of the
1. is under the same management as a result of agreements between undertakings
or provision in the companies ' articles of Association, partnership agreements or
comparable bylaws, or
2. have the administrative, management or supervisory body as to
the majority is composed of the same people and who has completed
their duties during the financial year and until the
consolidated accounts have been prepared.
Close links
section 8 Two companies have close links, if
1. one company directly or indirectly through subsidiaries
owns at least 20 per cent of the capital or disposes of at least
20% of all votes in the other company,
2. one company directly or indirectly represents the parent company
to the other or there are any other similar relationship
between undertakings, or
3. both companies are subsidiaries of or have any
a similar relationship with one and the same legal entity or
stands in a similar relationship to the same physical
person.
Close relations are also a natural person and an undertaking, whether
1. the natural person
a) owns at least 20 per cent of the share capital of the company,
b) disposes of at least 20 percent of all votes in
the company, or
c) otherwise has such influence over the company that
the person's position is equivalent to that which a parent undertaking has in the
relation to a subsidiary, or
2. There is another similar connection between this
personal and company.
Chapter 2. Financial conglomerates
The main rule
§ 1 a financial conglomerate pursuant to this law is made up of a
Group that meets all the following conditions:
1. at least one institution or insurance company is part of the group,
2. a regulated undertaking authorised in the EEA
(a)) is the parent company to a company in the financial
sector,
b) holds a participation in an entity in the financial sector,
(c)) have a common or in essence joint management with a
companies in the financial sector, or
d) is a subsidiary of another company and group
business is conducted mainly in the financial sector
According to section 2,
3. at least one of the companies of the group belongs to the insurance sector,
4. at least one of the companies in the group are the property of the bank and
the securities sector, and
5. the activities of the group in both the banking and insurance sector
the securities sector is significant under section 3 or 4.
Activities mainly in the financial sector
section 2 of the a group operates mainly in the
financial sector if the balance sheet total of the undertaking that
belong to the financial sector does not exceed 40% of the
total balance sheet total of the group.
Significant operations
section 3 of a group's activity in the insurance sector or the banking and
the securities sector is significant if the result of the following
calculation of the sector concerned exceed 10 percent.
The average of
1. ratio of the balance sheet total for the sector and the overall
the balance sheet total for all the undertakings in the group which belongs to the
the financial sector, plus
2. the ratio of the capital requirement for the sector and the total
the capital requirement for each company in the group which belongs to the
financial sector.
The insurance sector and the banking and securities sector as
has the lowest average for the purposes of
the calculation method in the first paragraph is the smallest sector. The
largest sector is the one that has the highest average.
4 section a group's activity in the insurance sector or the banking and
the securities sector is also significant if the balance sheet total of
the smallest sector in excess of an amount equivalent to six
billion euros.
Specific calculation methods
paragraph 5 of the calculations according to paragraphs 2 to 4, undertakings referred to in
Chapter 5. section 6 of the first paragraph are excluded, unless the company has
moved from a country in the EEA to a third country to
avoid regulation.
At calculations also exclude such participation, as
included in the smallest of the banking and securities sector or
the insurance sector and is crucial because if the
is a financial conglomerate, but which together are of
non-negligible interest with respect to the objectives of the Special
supervision of a financial conglomerate. Team (2013:670).
section 6, for the purposes of paragraphs 2 and 3 shall the revenue structure,
off-balance sheet or assets under management
be used as the sole basis or in combination to
replace the balance sheet total or used together with
it, if there are special reasons and the factors mentioned
are deemed to be of importance for the specific supervision of a
financial conglomerate. Team (2013:670).
Where a financial conglomerate ceases to exist
section 7 If a financial conglomerate no longer fulfils
the conditions in paragraphs 1 to 6, it ceases to be a financial
conglomerate. However, this does not apply in the cases referred to in 8 and
9 §§.
section 8 if any of the limits set out in 2-4 sections earlier
for a financial conglomerate, a lower
limit value applied for the three years immediately following the
year in which the limit value were undercut. Following lower limit values shall
in this case apply to:
1.35% instead of 40% for the purposes of paragraph 2,
2.8% instead of 10% for the purposes of paragraph 3,
and
3. five billion euros instead of six billion euros in
application of section 4.
If the financial conglomerate before they reach three years have gone
up to the limits provided for in paragraphs 2 to 4, the slightly lower
limit referred to in the first subparagraph shall no longer apply. If the
financial conglomerate after the three years is still not
meets the requirements of paragraphs 2-4, it ceases to be a financial
conglomerate.
Although a financial conglomerate comply with the limit values of
the first subparagraph, it shall cease to be a conglomerate
before three years have passed if it is no longer necessary to the
under special supervision.
9 § in cases other than those referred to in section 8, the provisions of
This law applies to a financial conglomerate during a
period of three years, despite the fact that the conglomerate no longer fulfils
to any of the limits given in paragraphs 2 and 3, if the
1. There has been significant changes in the structure of the group, and
2. is deemed of particular importance to the specific supervision of a
financial conglomerate.
Chapter 3. The scope of certain provisions
1 the provisions of §§ 4-Chapter 7. apply for a financial
conglomerates about a regulated undertaking authorised in
The EEA
1. is at the head of the financial conglomerate;
2. have a parent that is a mixed financial
holding company headquartered in the EEA, or
3. under common or in essence joint management with
another company in the financial sector.
For a financial conglomerate which is not covered by the first
paragraph and the parent undertaking of which is a regulated entity or a
mixed financial holding company has its head office outside the European economic area
apply the provisions of Chapter 8.
2 § where a financial conglomerate is organizationally belongs under
another financial conglomerate the provisions of 4-8
Cape. just because the latter conglomerate.
paragraph 3, the provisions of this law, or some of them, according to what
as is apparent from the decision pursuant to Chapter 4. 4 § 2, shall apply to
an institution or an insurance undertaking if
1. a natural or legal person has ownership interest in,
capital ties with or otherwise exercising a significant
influence of the institution or insurance company,
2. the conditions referred to in Chapter 2. 1 § 3-5 are met for the enterprises
the person or entity has such relations
as mentioned in 1, and
3. it is particularly important that the institution or
the insurance company is under special supervision
exercised over financial conglomerates.
When the first subparagraph applies, the references in this
law of financial conglomerates instead refer to the relations
between a natural or legal person and an institution or
an insurance company referred to in the first subparagraph 1.
section 4 Under the conditions provided for in the second subparagraph, a
Group operating in the insurance sector or the banking and
the securities sector be exempted
1. completely from this team's application, or
2. from the application of one or more of the provisions of
Chapter 5. 7-9 and 11-14 sections.
Such a group may be exempted, if
1. the group reaches up to the limit specified in Chapter 2. paragraph 3 of the
but have a business that is not significant according to Chapter 2. paragraph 4,
or have a business that is significant according to Chapter 2. 4 §
but the group does not reach the limit specified in
Chapter 2. section 3, and
2. it is not necessary or appropriate to the group covered
regulations on special supervision of financial
conglomerate. Team (2013:670).
Chapter 4. Coordinator of the special supervision of a
financial conglomerate
1 § for each financial conglomerate referred to in Chapter 3. 1 §
the first subparagraph shall be a coordinator. If there is
several competent authorities concerned, the Coordinator shall be appointed
among them, the Coordinator is responsible for the special supervision
of the financial conglomerate.
section 2 of the financial supervision authority shall be the Coordinator of the Special
supervision of a financial conglomerate, if in the top of the
the conglomerate is
1. an institution or an insurance undertaking;
2. a mixed financial holding company headquartered in
Sweden, which is the parent company to an institution or a
insurance companies,
3. two or more mixed financial holding companies with
head offices in different States within the EEA, including Sweden, and the
In addition, the conglomerate is regulated company in the same State
provided that the
(a)) of the regulated companies that, if they belong to the same
sector, with the largest balance sheet total is an institution
or an insurance undertaking, or
(b)) of the regulated companies that, if they belong to different
sectors, operating in the largest sector is an institution or
an insurance undertaking, or
4. a mixed financial holding company which is the parent company
to multiple regulated companies that are not authorized in the
Member State in which the holding company has its head office, and the
subsidiary that has the largest balance sheet total in the
largest sector is an institution or an insurance undertaking.
The financial supervision authority shall also be the Coordinator if
1. subject to article 10 (2) (a) and (b) i-iii in
conglomerates directive to any competent authority is the Coordinator
and if an institution or an insurance undertaking has the
largest balance sheet total in the largest sector, or
2. the inspection together with the other relevant competent
authorities will agree on it in accordance with the provisions
in section 3.
When the financial supervision authority pursuant to the first subparagraph or other
paragraph 1 shall be the inspection Coordinator, together
with the other relevant competent authorities, may agree to
another competent authority in the EEA than the inspection shall be appointed
to the Coordinator. The financial supervision authority may enter into such a
Agreement, if it is inappropriate that the inspection be appointed
Coordinator in the light of the financial conglomerate
structure of the conglomerate and the relative importance
activities in different countries.
3 § If it would be inappropriate, taking into account the
financial conglomerate's structure, and the relative importance
of its activities in different countries to the Coordinator for the
financial conglomerate designated under the grounds referred to in
Article 10(2) of the conglomerates directive, the financial supervisory authority
agree with the other relevant competent authorities to
supervisory authority or any other competent authority shall be
Coordinator of the financial conglomerate.
In such a case, the financial conglomerate is given
opportunity to be heard before the financial supervision authority and the other
relevant competent authorities included the agreement.
4 § After the financial supervisory authority is the Coordinator shall be the inspection
make decisions in matters of
1. There is a financial conglomerate pursuant to Chapter 2. 1-6 sections,
2. the provisions of this law shall apply to an institution
or an insurance company as referred to in Chapter 3. section 3,
3. a financial conglomerate shall cease to be a
financial conglomerate, and
4. the provisions of Chapter 3. paragraph 3 shall no longer apply to
an institution or an insurance undertaking.
§ 5 If the financial supervision authority has taken a decision pursuant to paragraph 4 1
or 2, the Inspectorate shall submit a notification of decision
and that the supervisory authority is the Coordinator. Such notification
shall be provided to the parent undertaking which is at the head of a
conglomerate or, if there is no parent, the
regulated entity with the largest balance sheet total in
the largest sector.
The information referred to in the first subparagraph shall also be provided
to
1. the competent authorities that authorised the regulated companies in
the conglomerate and the competent authorities of the country in the EEA where
the mixed financial holding company has its head office,
and
2. the Joint Committee of the European
the supervisory authorities. Law (2012:195).
Chapter 5. Financial position
Capital base and capital requirement
the provisions of paragraph 1 of the 3-6, 8 and 10-12 sections as well as paragraph 14 of the first
subparagraph applies only if the financial supervision authority is the Coordinator for
a financial conglomerate.
2 § For a financial conglomerate shall be a
capital base that meets one of financial conglomerates
in particular, capital requirements.
Institutions and insurance companies that are part of a financial
conglomerates should have a capital base that is large enough to
respect to capital requirements for intra-group transactions.
section 3 of the capital base and capital requirement for a financial
conglomerate shall be calculated on the basis of sectoral regulations
about how the capital base and capital requirement is determined.
section 4 If it is at the head of a financial conglomerate is a
institution or insurance company, the capital base and
capital requirements for intra-group transactions shall be calculated in accordance with
deduction and application method (method 2 as set out in annex I
the conglomerates directive). If there are reasons,
capital base and capital requirement instead calculated according to
the consolidation method (method 1 as referred to in annex I to
conglomerates directive) or by a combination of the
provided methods.
The first subparagraph shall apply also in the case of other
financial conglomerate than those who have an institution or
an insurance company at the head of the financial supervisory authority is the
only relevant competent authority.
5 § in cases other than those referred to in paragraph 4 of the financial supervision authority shall,
After hearing the other relevant competent authorities and
the financial conglomerate, to decide which of the following
methods to be used for the calculation of own funds and
capital requirements for intra-group transactions:
1. deduction and application method,
2. consolidation method, or
3. a combination of these methods.
Team (2013:670).
paragraph 6 of the financial supervision authority shall decide on exemptions for a
companies that are part of a financial conglomerate from
the calculation of the own funds and the capital requirement for the conglomerate
If
1. the company is located in a country outside the EEA where there is
legal impediments to the transfer of the necessary information on the
the company,
2. the company has non-negligible interest with respect to the objectives of
the special supervision of financial conglomerates, or
3. it would be inappropriate or misleading to let
the company covered by the calculation taking into account the purpose of the
the special supervision of financial conglomerates.
When the first subparagraph 2 is applicable to multiple
company, may waiver not be decided, if these two together do not have
non-negligible interest with respect to the objectives of the Special
supervision of financial conglomerates.
Before the FSA decides that, with the support of the first
paragraph 3, exempt a company from the calculation, the
inspection consult the other relevant competent authorities.
This is not required in cases of urgency.
If the financial supervision authority pursuant to the first subparagraph 2 or 3
except an institution or an insurance undertaking from
calculation, the company that is at the head of
the conglomerate, at the request of the financial supervision authority, leave
information provided by the inspection needs for its oversight of
institution or insurance company.
Risk concentrations
section 7 of The firms in a financial conglomerate shall not be
exposed to such great financial or other risks to
solvency or the financial position of a regulated
companies that are part of the financial conglomerate is under threat
(risk concentration).
section 8 If a mixed financial holding company at the head
of a financial conglomerate, whose largest sector is the banking
and the securities sector, the provisions on large
exposures in European Parliament and Council Regulation (EU)
No 575/2013 of 26 June 2013 on prudential requirements for
credit institutions and investment firms and amending
Regulation (EU) No 648/2012 for all companies belonging to
the sector and the mixed financial
holding company. Law (2014:984).
Internal transactions
§ 9 internal transactions must not threaten the solvency or the
financial standing of a regulated company within a
financial conglomerate.
With an internal transaction "means a transaction whereby a
regulated company within a financial conglomerate directly or
indirect hires another company within the same conglomerate or
a natural or legal person who has close links with
companies in the conglomerate to fulfill an obligation, regardless of
If it follows by agreement or not and regardless of whether the
requires payment or not.
Reporting
section 10 of The own funds and the capital requirements under this Act
apply for a financial conglomerate shall be calculated
continuous. The result of the calculation and material
data underlying them should be periodically
reported to the FSA.
11 § risk concentrations and intra-group transactions
significant and of the given type, must be regularly reported to the
The Swedish financial supervisory authority. What these are will be decided by
The financial supervisory authority of each conglomerate. Inspection
shall, in respect of the transactions and
concentrations of risk which is significant, hearing the other relevant
the competent authorities and the financial conglomerate, as well as, in
question about the nature of the risk concentrations and intra-group
transactions that must be reported, hearing the other relevant
competent authorities.
11 a of the Government or the authority that the Government
determines announces that certain information
According to paragraphs 10 and 11 shall be submitted to the financial supervision authority in
the place must be submitted to the central statistical office.
Law (2014:489).
12 § When a regulated entity established in the EEA, see
top of intra-group transactions, the reporting
According to paragraphs 10 and 11 shall be made by the company.
In other cases, the report shall be submitted by the mixed financial holding
holding company in the financial conglomerate or the
institution or insurance company in the conglomerate that
The financial supervisory authority in a particular case decides, after
heard the other relevant competent authorities and
the conglomerate.
System risk management processes and internal control
section 13 institutes and insurance companies that are part of a
financial conglomerate shall have in place systems for risk management and
procedures for internal control is satisfactory with regard to the
conglomerate's overall risk situation.
section 14 institutions, insurance companies and mixed financial
holding company with headquarters in Sweden that according to section 12
responsible for reporting to the financial supervision authority shall have
the necessary internal control mechanisms in order to develop
information that may be relevant to the supervision of the
financial conglomerate.
If an institution, an insurance undertaking or a mixed
financial holding company with head office in Sweden is responsible
for a financial konglomerats reporting to a foreign
the competent authority is the Coordinator of the supervision of
the conglomerate, the entity shall have such practices for internal
the control referred to in the first subparagraph.
section 15, a company that is part of a financial conglomerate,
to the company under section 12 is responsible for reporting
to the financial supervision authority or to the company that according to section 14
the second paragraph is responsible for reporting to a foreign
the competent authority is the Coordinator shall provide the information as
This company needs to fulfill
the reporting obligation.
The first paragraph also applies to a Swedish company in relation
to such companies within the EEA which shall draw up and submit
a report according to a public regulation based on
conglomerates directive.
The management of a mixed financial holding company
section 16 of The included in the management of a mixed financial
holding company shall have sufficient insight and experience for
to participate in the management of the company and also otherwise be
suitable for such a task.
Chapter 6. Supervision
Applicable supervisory rules
section 1 of the financial supervision authority monitors compliance with this law.
In the case of supervision of institutions and insurance companies
applies to that which is stipulated in the sectoral regulations, if not
subject to the provisions of this law.
Certain agreements with foreign relevant competent
authorities
2 § Before the financial supervision authority makes a decision under
any of the provisions of Chapter 2. sections 5 and 6, the third subparagraph of paragraph 8
and section 9, and Chapter 3. paragraphs 3 and 4, the supervisory authority have come
agree with the other relevant competent authorities on the content
in the decision.
The financial supervision authority shall, at the request of a company that is part of the
the conglomerate to decide if the conditions in the said
provisions are met.
If a decision as referred to in the first subparagraph are not evidenced by a
the information referred to in Chapter 4. section 5, the financial supervisory authority
inform the other competent authorities concerned of the decision.
Information obligations
section 3 of The companies that are part of a financial conglomerate,
provide the financial supervision authority the information about their activities and
related circumstances that the inspection request for
supervision of the conglomerate.
If the company does not provide this information to
The Swedish financial supervisory authority, the supervisory authority shall submit to the company to
do it, such an order must not be directed towards a
regulated companies that belong in another country within the EEA. In
question about such a company comes in, rather than Chapter 7. section 3.
Study of a mixed financial holding company
paragraph 4 of the financial supervision authority may carry out an investigation of a
Swedish mixed financial holding company which according to Chapter 5.
section 12 shall report to the inspection, if necessary
supervision of the financial conglomerate holding company
included in the.
Cooperation and exchange of information
paragraph 5 of the financial supervision authority shall in its supervisory activities work together
and exchange information with foreign competent authorities,
The European banking authority, the European Securities and
market authority, the European insurance and
occupational pensions authority and the European systemic risk Board in
the degree conferred by the conglomerates directive.
Law (2012:195).
5 a of the financial supervision authority may refer the matters related to a
procedure by another competent authority in the EEA to
The European banking authority, the European Securities and
markets authority or the European insurance and
occupational pensions authority of dispute resolution in the cases
According to article 18(1)(a) of the conglomerates directive.
Law (2012:195).
paragraph 6 of the financial supervision authority shall, within the framework of its competence,
at the request of a competent authority in another country in the
The EEA submit or verify the information necessary for the
foreign authority to exercise its supervision under a
public regulation based on the conglomerates directive. The
foreign authority may attend an inspection carried out by
The Swedish financial supervisory authority.
Professional secrecy
section 7 A member of the Board of directors or other officers of the
the insurance company or a mixed financial
holding companies, as in the performance of obligations under the
This law, knowledge of business conditions in another
companies belonging to the same financial conglomerate shall not improperly
disclose what he or she has been told, nor exploit
knowledge in violation of the company's interest.
Obligation to provide data
section 8, an insurance company and a mixed financial
holding companies are required to disclose information about individuals '
conditions of the undertaking, if, during an investigation in accordance with
the provisions concerning pre-trial investigation in criminal matters requested by the
investigators or if, in a case concerning legal assistance
in criminal matters at the request of another State or a
International Court requested by prosecutors.
Message ban
§ 9 The investigators or prosecutors request information
According to section 8, may order that the company and its
Directors and employees shall not disclose to the customer or
to any third party that the information has been provided under section 8
or that there is an investigation or case if
legal assistance in criminal matters.
Such a ban may be communicated if required to a
investigation of crimes should not be compromised or to meet
an international agreement which is binding for Sweden.
This prohibition shall be limited in time, with the possibility of
extension, and may not be for longer than is
justified by the purpose of the ban. In a case if the
legal assistance in criminal matters may, however, the ban be limited
only if the State or international court applied for
legal assistance agrees to this.
If a prohibition is no longer justified with regard to the purpose of the
with the ban, the-patient basis or the Prosecutor
decide that the appointment shall terminate.
Fees
section 10 of an institution or an insurance undertaking under
supervision according to this law, with annual dues cover
FSA's activities and central statistical office
activities under the Act (2014:484) on a database for
monitoring and supervision of financial markets.
If the financial supervision authority in monitoring under this Act need
hire someone with specific expertise for the evaluation of a
Some ask, will the cost of this will be paid by the institution
or the insurance company oversight concerns.
Law (2014:489).
Chapter 7. Interventions
Violations of this law
§ 1 if an institution or an insurance undertaking within a
financial conglomerate do not comply with the requirements specified in 5
Cape. or where the requirements are met but solvency or the
financial standing of a regulated company in the
the conglomerate is still under threat, the financial supervision authority shall submit to the
the company shall report in accordance with Chapter 5. section 12 to take
measures to remedy the situation.
If an institution or an insurance undertaking violates this
In addition, the law, as provided for in
sectoral regulations.
section 2 of the financial supervision authority shall, acting as Coordinator,
submit to a mixed financial holding company to take
measures to make correction if the holding company or its
management does not fulfil the requirements imposed on it under this
team.
section 3 Of the FSA, acting as Coordinator, judge
that a regulated company that belongs in another country in the
The EEA does not meet the requirements imposed on it under this Act
or where the requirements are met but the regulated company
solvency or financial situation nevertheless is threatened,
the inspection shall notify the competent authority of that country.
Late payment fee
section 4 If an institution, an insurance undertaking or a mixed
financial holding company with headquarters in Sweden in time
leave the information prescribed pursuant to Chapter 9. 1 §
6 and 7, the financial supervision authority may decide that it shall
pay a late charge with a maximum of 100 000 SEK.
The fee to the State.
paragraph 5 of the late payment fee shall be paid to the financial supervisory authority
within thirty days after the decision has become final
or the longer period specified in the decision.
section 6 of the FSA's decision to remove the late fee may
be effected without previous judgment or order, where the payment is not
has been paid within the period specified in section 5.
section 7 If the late payment fee is not paid within the time specified in the
paragraph 5 of the financial supervision authority shall submit the unpaid fee for
recovery. Provisions on recovery of State assets
see Act (1993:891) for the recovery of State assets
accommodation
section 8 a late charge falls away to the extent
enforcement has not been made within five years from the decision
became final.
VITE
section 9 If the FSA announces notice under this
law, the inspection shall submit to the penalty.
Chapter 8. Parent undertakings outside the EEA
section 1 When the parent undertaking of an institution or a
the insurance company is a regulated entity or a mixed
financial holding company which has its head office outside the European economic area
apply 2-4 paragraphs, if the financial supervision authority pursuant to the provisions of 4
Cape. 2 the second subparagraph of paragraph 1 or would have been
Coordinator. In determining whether the inspection would have been
the Coordinator shall not be taken from the portion of the top of the Group
located outside of the EEA.
section 2 of the financial supervision authority shall verify whether the supervision
be exercised by the supervisory authority in the third country are equivalent to
the special supervision of financial conglomerates
provided in the conglomerate directive.
The financial supervision authority is required to perform such a check on
the request of the parent undertaking or of any of the regulated
companies in the conglomerate, which has been authorised in the EEA.
Before considering whether the FSA supervision is
equivalent, the inspectorate told the other relevant competent
authorities. Law (2012:195).
§ 3 When a supervisory authority outside the EEA supervises
a financial conglomerate deemed equivalent, apply 5
Cape. paragraph 2, second subparagraph, and Chapter 5. 7 and 9 section for institutions and
insurance companies that are part of the conglomerate.
section 4 If supervision is not deemed to be equivalent, shall
The financial supervision authority may decide that the provisions of this law shall
apply to the conglomerate in the same way as if the company is in
the top of the conglomerate had had its head office in the EEA.
After hearing the other relevant competent authorities,
The FSA instead decide to use other
supervisory practices to ensure that the supervision of the
regulated firms in the financial conglomerate is
sufficient. The inspection may submit to an owner who has
direct control of the institution or
insurance company to set up a mixed financial
holding company with a head office in the EEA. The inspection will then
decide that the provisions of this law shall apply to the
regulated firms in the financial conglomerate headed by
This holding company.
The financial supervision authority shall inform the financial
the conglomerate, competent authorities and the European
communities when such supervisory methods
in the second paragraph is used.
Chapter 9. Appropriations
section 1 of the Government or the authority that the Government may
provide for
1. how the balance sheet total and the capital requirement shall be calculated
According to Chapter 2. 2-4 sections,
2. the detailed conditions for applying the provision in the
Chapter 3. paragraph 4,
3. how the capital base and capital adequacy requirements shall be calculated as 5
Cape. 3-5 sections,
4. how risk concentration as set out in Chapter 5. section 7 should be valued,
5. how internal transactions according to Chapter 5. section 9 shall be valued,
6. the content, scope and fulfilment of reporting
According to Chapter 5. section 10,
7. such risk concentrations and intra-group transactions
shall be reported according to Chapter 5. section 11 and the performance of this
reporting, and
8. the requirements for system risk management processes and internal
the control according to Chapter 5. 13 and 14 sections.
section 2 of the Government may provide for such fees for
supervision referred to in Chapter 6. section 10 of the first paragraph.
10 Cape. Appeals and liability provision
Appeal
section 1 of the FSA's decision under this Act may be appealed
in general administrative court. However, this does not apply to decisions of the
cases referred to in section 20, first paragraph 5 Administrative Procedure Act
(1986:223).
Leave to appeal is required for an appeal to the administrative court.
The financial supervision authority may provide that a decision under this Act
shall take effect immediately.
The liability provision
section 2 of the fined person who willfully or through gross
negligence violates a prohibition notice pursuant to Chapter 6. § 9.
Transitional provisions
2013:670
1. this law shall enter into force on August 1, 2013.
2. Older provisions still apply to the
reporting obligations relating to the period prior to 1 January
2014.
2015:825
1. this law shall enter into force on the 1 January 2016.
2. The law shall apply for the first time for the financial years beginning after december 31, 2015.
