Introductory provisions
section 1 of this Act contains provisions on compensation for
the loss of investors ' financial instruments and funds in
a Securities Institute, a mutual fund company, a
management company or an aifm
(Investor).
Questions about investor protection are dealt with by the authority
the Government determines. Team (2013:568).
Definitions
section 2 of this Act means
1. investment institutions: same as set out in Chapter 1. paragraph 5 of 27
Act (2007:528) on the securities market,
2. the Fund management company: a company such as specified in Chapter 1. section 1 of the first
subparagraph 8 (2004:46) about mutual funds,
3. management companies: such a foreign company listed
in Chapter 1. Article 1, first paragraph 13 the law on investment funds,
operating from a branch in Sweden with the support of 1
Cape. paragraph 6 of the same law,
4. investor: the who hired a Securities Institute, a
Fund management companies, a management company or an aifm to
the provision of an investment service or the person for whom
the service is provided,
5. investment services: such a service referred to in
a) Chapter 2. section 1 and section 2 of the first paragraph 1 the law on
the securities market,
b) Chapter 7. 1 section 9 Act (2004:297) on banking and
financing business,
c) Chapter 1. section 4 in respect of discretionary portfolio management,
Chapter 3. § 1 and Chapter 7. Article 1, first subparagraph 1 and 2 the law on
investment funds and
d) Chapter 3. paragraph 2 of the first subparagraph and second subparagraph 1 – 3 and Chapter 9.
10 paragraph 1 Act (2013:561) on
alternative investment funds,
6. financial instruments: the same as specified in Chapter 1. 4 §
the first subparagraph of paragraph 1 the law on securities market,
7. guarantee authority: the authority which deals with questions about
investor protection, and
8. aifm: such undertakings authorised as
referred to in Chapter 3. 2(1) of the law on
alternative investment funds or operating
from the branch in Sweden on the basis of Chapter 5. Article 1, first paragraph 2
the same law. Law (2015:396).
Investerarskyddets scope
paragraph 3 of the investor protection covers
1. financial instruments belonging to the investor which
a Swedish securities, a branch in Sweden to
a foreign securities, a fund management company, branch
to a trust company or an aifm have
over in connection with an investment service is performed, and
2. medium as a Swedish Securities Institute, a branch of the
Sweden to a foreign securities firm, a
mutual fund company, a branch of a management company or a
Aifms have received with accountability in
When an investment service is performed.
Rights to compensation under this Act is not about
the funds can be replaced under the Act (1995:1571) if
the deposit guarantee. Team (2013:568).
section 4 of the Swedish Securities Institute, a mutual fund company or a
Swedish aifm has been authorised to
provide investment services of investor protection
According to this law.
Investor protection also covers the assets under paragraph 3 of
Swedish Securities Institute, a mutual fund corporation or a Swedish
Aifm branch in another country within the European
economic area (EEA).
Guarantee the Agency may, on application by a Swedish
securities or mutual fund companies may decide to
protection under this law shall include assets under paragraph 3 of
held by a branch of the Institute or the management company of a
countries outside the EEA. Law (2015:396).
§ 5 Guarantee authority may, on application by a foreign
securities firm decide to Institute's branch in Sweden
shall belong to the investor protection, if the branch is not part of a
investor protection in another country who satisfy at least the requirements
as far as within the EEA.
When the compensation is determined in accordance with this law shall in cases
referred to in the first subparagraph, deductions made for the replacement of a
investors who hired the branch may obtain from a
investor protection in the Institute's homeland. Law (2007:1434).
section 6 of the Guarantee Agency may, on application by a foreign
securities from a country in the EEA, the
management company or a foreign aifm may decide
to the Institute, company or the branch in
Sweden the Swedish investor protection that
In addition to the protection provided by the institution,
the company or the aifm in the homeland
(supplementary protection).
The same applies to a foreign securities institutions from
a country outside the EEA, its branch in Sweden belong to a
protection in their home country who satisfy at least the requirements laid down in
The EEA.
When the compensation is determined in accordance with this law shall in cases
referred to in the first and second subparagraphs deduction be made for the
compensation an investor who hired the branch can get from
protection in the Institute, company or the
homeland. Law (2015:396).
Compensation from the investor protection
section 7 an investor is entitled to receive compensation from
investor protection if a Securities Institute, a mutual fund company,
a management company or an aifm which belongs to
protection is declared bankrupt and the investor not from
institution, company or the aifm can get out
financial instruments or funds referred to in paragraph 3.
If a branch of a foreign securities firm, a
branch of a management company or a branch of a
Foreign aifm belongs to investor protection,
investors who hired branch is also entitled to compensation if
a competent authority in the Institute, company or
The country declared that financial instruments
and resources of the Institute, the company or the aifm does not
is available. In such cases, the provisions on
bankruptcy in this law shall apply. Law (2015:396).
section 8 compensation for financial instruments shall be provided with
amount equal to the fair market value of the instruments at the end
of the date of the bankruptcy order will be notified. If the instruments are objects
for course substitution must, unless otherwise indicated, the market value
be deemed to be equal to the last quoted price or, if
such is not, last quoted bid price.
If the right to interest is by law or contract, shall
compensation for funds include interest at the date of
the bankruptcy decision.
Financial instruments or funds that are specified in a different
currency shall be converted into Swedish kronor, according to the
last bid price that was in effect on the day of the bankruptcy decision.
§ 9/expires U: 2016-03-01/
Compensation, along with any dividend in
investment Institute, the management company, the management company
or the bankruptcy, compensation by the Institute,
the management company, the management company or the
liability and damages under Chapter 7. section 2 of the Act
(1998:1479) on the accounting of financial instruments, for a
losses that are compensable under this law, shall be limited
to a maximum of 250 000 SEK for each institution or
companies. Team (2013:568).
§ 9/entry into force: 03/01/2016
Compensation, along with any dividend in the Securities Institute, the management company, the management company or the aifm's bankruptcy, compensation by the Institute, the management company, the management company or the aifm's liability and damages under Chapter 7. section 2 of the Act (1998:1479) on CSDs and the accounting of financial instruments, for a loss as under this Act are recoverable, may amount to a maximum of 250 000 SEK for each institution or company. Law (2016:53).
section 10, if a person has engaged in a securities firm, a
Fund management companies, a management company or an aifm completely
or partly on behalf of another, he shall have the right
to compensation. The right to compensation shall in such case
be examined as if the person himself has engaged the Institute;
the company or the aifm. Team (2013:568).
section 11 Of the financial instruments or funds as compensation
concerns are pledged, the pledgee shall have a lien on the
the compensation.
Exceptions to the investor protection
12 § shareholders in a unit trust under the Act (2004:46)
If mutual funds or a special fund under the Act
(2013:561) on alternative investment fund managers
are not entitled to compensation for assets that are included in the
Fund.
Investor protection also does not apply to assets that
subject to the Act (1993:931) of individual
retirement savings. Team (2013:568).
section 13 of The Securities Institute, a mutual fund company, a
management company or an aifm which belongs to
investor protection cannot obtain compensation from this.
Team (2013:568).
14 § a requirement in respect of assets which, pursuant to a
a final judgment has been the subject of offences under Chapter 9.
6 or 7 of the Penal Code or 3, 4, 5 or 6 of the Act
(2014:307) on penalties for money laundering offences, should not give the correct
to compensation from the investor protection. Law (2014:311).
The investigation and payment of compensation
section 15, an investor who wants compensation under this Act
shall submit its claim to the guarantee agency
no later than one year from the date of the bankruptcy order. Have the investor
not made its request within this time limit, the right to
compensation for lost.
If the investor has been unable to produce their requirements
within the time limit referred to in the first subparagraph begins the deadline in
the place to run when the obstacle is removed. Law (2007:1434).
section 16 If the nominee in a Securities Institute, a
mutual fund corporation or a Swedish aifm bankruptcy finds that
an investor may be entitled to compensation from the
investor protection, should the trustee forthwith inform
the investor of this. The manager shall also provide the
data to guarantee the authority as the authority requires for
to be able to take a position on an investor's claim.
Law (2015:396).
section 17 Guarantee authority shall pay compensation to the
an investor as soon as possible and no later than two weeks after the
final compensation has been set. Law (2007:1434).
section 18 if the prosecution for the offence referred to in section 14 in respect of
certain access and compensation for access,
guarantee authority may decide that compensation not
to be paid out. Law (2014:311).
Repayment of compensation
19 § if someone through false statements or any other way,
caused to compensation paid out incorrectly or too high
amount, repayment of what has been paid for
very together with interest calculated in accordance with paragraph 6 of the interest Act
(1975:635).
The refund shall also be done if someone otherwise have taken
receive compensation or with excessive amounts and
reasonably should have known this. Interest shall in such cases
calculated in accordance with paragraph 5 of the interest Act.
Decisions referred to in the first and second subparagraphs is taken by
guarantee the authority and shall be enforced under
the enforcement code.
If there are special reasons, the repayment obligation
According to the first and second subparagraphs remitted in whole or in part.
Law (2007:1434).
Information
section 20 of The Securities Institute, a mutual fund company, a
management company and an aifm shall inform their
customers about
1. the protection of the institution, company or
The aifm for assets referred to in paragraph 3,
2. the level of remuneration that applies to the protection, and
3. the arrangements for payment of compensation from the protection.
The information must be kept available on the Swedish language.
If the information referred to in the first or the second subparagraph shall not
be left to the Marketing Act (2008:486) applied, with
exceptions to the provisions of sections 29 to 36 of
market interference charge. Such information shall be deemed to be
material in accordance with section 10, third paragraph Marketing Act.
Team (2013:568).
Assumption of debt
section 21 in respect of compensation
paid from the investor protection takes the State into
the investor's right against the securities institution, management company,
the management company or the aifm with preferential rights
in front of the investor next to the issued amount.
When a foreign system of protection has paid out compensation with
due to a Swedish securities, a
mutual fund company or a Swedish aifm declared bankrupt,
take the foreign protection system into the investor's rights
against the Securities Institute, the management company or the aifm
with preferential right in front of the investor next to the release
amount. Law (2015:396).
section 22/expires U: 2016-03-01/
If an investor is entitled to receive compensation pursuant to a
liability insurance subscribed by a
securities, a Fund, a management company
or an aifm and whether compensation has been paid:
under this law for the assets
the insurance compensation, the State shall enter into
the investor's right to compensation under the liability insurance
with preferential right in front of the investor next to the release
amount.
If an investor has a right to damages under Chapter 7. section 2 of the
Act (1998:1479) on the accounting of financial instruments
and compensation has been paid out from the investor protection for the
assets as damages relating to, the State shall enter into
the investor's right to compensation under the law with
preferential right in front of the investor next to the release
amount. Team (2013:568).
section 22/entry into force: 03/22/2016
If an investor is entitled to receive compensation under the liability insurance subscribed by a Securities Institute, a mutual fund company, a trust company or an aifm and whether compensation has been paid under this Act for the assets insurance compensation concerns, takes the State into the investor's right to compensation under the liability insurance with preferential right in front of the investor next to the issued amount.
If an investor has a right to damages under Chapter 7. section 2 of the Act (1998:1479) on CSDs and the accounting of financial instruments and compensation has been paid out from the investor protection for the assets as compensation, the State shall enter into the investor's right to compensation under the law with a preferential right in front of the investor next to the issued amount. Law (2016:53).
Interventions
23 § Guarantee authority shall inform the financial supervision authority, if
a Securities Institute, a mutual fund company or a Swedish
Aifm which belongs to investor protection fails
their obligations under this Act. Law (2015:396).
section 24 If a branch referred to in section 6, first paragraph belongs to
investor protection and securities institution,
the management company or the aifm does not comply with its
obligations under this Act, the guarantee agency
inform the supervisory authority in the Institute, company or
The home Member State accordingly. The authority shall cooperate
with the supervisory authority in respect of actions taken
to ensure that the Institute, company or
Aifm comply with their obligations.
If the institution, company or the aifm has still not
fulfil their obligations, the guarantee agency shall submit to the
it to take corrective action within a certain time, but at least
one year. The notice shall include a statement that
the protection no longer applies to the branch of the Institute,
the company or the aifm does not fulfil his obligations.
Has the institution, company or the aifm not taken
correction within the prescribed period, shall guarantee agency may decide
that protection should not be applied to the branch. Such a
decision may be communicated only where the supervisory authority in the
institution, company or country aifm have
consented to the decision. Law (2015:396).
section 25 where a branch referred to in paragraph 6, second subparagraph, belongs to
investor protection and securities institution does not comply with its
obligations under this Act, the guarantee agency
submit to the Institute to take corrective action within a specified time. Has
correction is not made within the prescribed time limit, the authority may decide
that protection shall no longer apply to the branch. Such a decision
may be notified only after the regulatory authority in the Institute's
homeland has been notified. Law (2007:1434).
section 26 About a Swedish investment fund institutions or corporate
branch in a country outside the EEA belongs to investor protection according to
the third subparagraph of paragraph 4 and the institution or the management company is not
fulfils the obligations arising under this Act applies to
the branch, may guarantee the authority shall submit to the institution or
the fund company to take corrective action within a specified time. Not have correction
within the prescribed time limit, the authority may decide that the protection
no longer apply to the branch. The Agency has decided
that protection should not apply, it shall inform the
The financial supervisory authority and the supervisory authority of the country where
the branch is on the decision. Law (2007:1434).
section 27 If the guarantee agency has decided to
investor protection should not apply to the assets of the
a Securities Institute, a mutual fund company, a
management company or an aifm shall,
the company or the aifm inform interested investors
If the decision. Team (2013:568).
section 28 a decision that protection should not apply in a
securities, a Fund, a management company
or an aifm does not affect the protection of the
assets that were covered by the protection when the decision was announced.
The same applies when the financial supervisory authority revoked, a
licensed to conduct banking, financial, commercial or
securities operations, a condition for a fund management company that
Managing someone else's financial instruments or a
State of the aifm to discretionary management
of investment portfolios. Team (2013:568).
Fees and payments
section 29 of The securities companies, fund management companies, management companies
and aifm which belongs to investor protection shall pay
contributions to the guarantee agency.
Institutions, companies and the total of the aifm
fees should correspond to what is necessary for a long-term
financing of protection and to cover the guarantee agency
administrative expenses. For the purposes of calculating the fee shall
taken into account the proportion of protected assets held by
institution, company or the aifm compared to
all of the protected assets. Charge relating to the Agency's
administrative expenses shall be divided equally between
all institutions, companies and aifm that belong to
investor protection.
The Government or the authority that the Government may
provide for how the fee will be calculated.
Team (2013:568).
section 30 of the protection of a securities firm, a fund management company,
a management company or an aifm starts or
expires during the current calendar year,
guarantee authority to take this into account when the fee for
the protection is determined. Team (2013:568).
section 31 Fees and other funds that guarantee Authority manages
should be placed on the interest-bearing account at the national debt Office, or in the
debt securities issued by the State. Funds may only
be used for the payment of compensation under this Act, and
to cover the costs of the provision of
investor protection and the Authority's administrative expenses for
the protection.
If the funds are not sufficient to pay the remuneration or
If compensation cannot be paid by other means,
guarantee authority to borrow funds in the Swedish national debt Office.
Law (2007:1434).
32 § A Securities Institute, a mutual fund company, a
management company and an aifm covered by
investor protection shall disclose the information to
guarantee the authority that the Agency needs to determine
institution, company or the fee and
the rest of its activities under this Act. Team (2013:568).
Appeal
33 § guarantee authority under this Act may
be appealed to the administrative court. However, this does
No decision in the matters referred to in section 20, first paragraph 5
Administrative Procedure Act (2007:1434).
Leave to appeal is required in case of appeal to the administrative law.
Transitional provisions
1999:158
This law shall enter into force on 1 May 1999, except in the case of 14 and
18 sections, which will enter into force on 1 July 1999.
2007:550
1. this law shall enter into force on 1 november 2007.
2. in the case of investment services that have been performed prior to
entry into force for older provisions.
2007:1434
1. this law shall enter into force on 1 January 2008.
2. The new provisions shall also apply to decisions
Deposit Insurance Board has taken before the law
date of entry into force.
3. The provision in section 15 shall, after its entry into force
apply to claims previously made to
The deposit guarantee Board.
2014:311
1. this law shall enter into force on 1 July 2014.
2. Older provisions apply to claims relating to assets
that has been the subject of crimes committed before
the entry into force.
