“The assertion that Finansinspektionen (FI) supposedly manipulated public documents related to money laundering investigations and that were requested by the newspaper Svenska Dagbladet is incorrect,” says FI’s Director General Erik Thedéen. An internal legal assessment that FI is publishing today shows that the documents and their release have been handled correctly. FI’s Board of Directors convened for an extraordinary meeting to receive information about this matter and how it will be handled.
At the moment, Friday, 7 December, the TRS 2 system is unable to create FD files (daily feedback).
Several banks are working to develop and enhance their information and cyber security. Some have not yet fully adapted their work to the changed conditions introduced by increased digitalisation and an increased level of cyber threats. FI expects that the banks will continue to focus on developing their information- and cyber security abilities, and keep managing and monitoring their information and cyber risks.
Reference rates are important since they are used in many financial contracts, and it is therefore crucial that they are fair, transparent and accurately reflect the underlying market.
Thedéen discussed the impact of high household debt on financial stability and sustainable economic growth as well as the role of macroprudential policy at the 7th FIN-FSA conference on EU Regulation and Supervision.
Low interest rates have contributed to high risk-taking, rising asset prices and increasing debt. Higher interest rates in the next few years could reduce risk-taking and thus dampen the build-up of risk. However, unexpectedly large interest rate fluctuations and uncertain global developments could also test the financial sector’s resilience. These are some of the conclusions Finansinspektionen (FI) draws in this year’s second report on the stability in the financial system. The report will be presented at a press conference today.
The economy continues to be strong, both in Sweden and globally, but it is now showing signs of a slow-down. Interest rates have been low for a long period of time, which has led to high risk-taking and rising asset prices. As a result, the risks in the financial system are elevated. The resilience in the Swedish financial system is satisfactory in general but continued high growth in debt fuelled by lending and investments related to residential property and commercial real estate require monitoring.
On Monday, 26 November, TRS 2 was upgraded to a new system version.
Despite the positive progression over the past few weeks, there is still some uncertainty surrounding Brexit. FI has previously identified the limited access to clearing services as one of the consequences of Brexit that could have a major impact on Swedish firms. The European Commission’s communication that it will take action to manage risks to financial stability that are associated with clearing is therefore welcomed. At the same time, though, a hard Brexit could create other types of frictions that affect Swedish firms. It is therefore of utmost importance that Swedish firms continue to prepare for Brexit.
Affordable housing and household indebtedness is increasingly the focus of the public debate in many countries. Erik Thedéen participated in a plenary panel together with representatives from Australia, Canada and Ireland to discuss what can be done to manage systemic risks and maintain healthy housing markets.
Finansinspektionen publishes the capital requirements of the largest Swedish banks and credit institutions that belong to supervisory categories 1 and 2 as of the end of Q3 2018.
FI is extending the ongoing maintenance and upgrade of the production environment in the TRS2 system until further notice.
In general, the insurance undertakings employ adequate governance and control practices in their ICT operations. But FI has also observed that some undertakings have difficulties identifying and managing the consequences of outsourced ICT operations.
As outlined in the capital requirements directive, FI must review the systemicrisk buffer on an biennial basis. FI has reviewed the arguments originally setout to support a SRB buffer level of 3 % at consolidated level for the major banking groups and finds the arguments to still hold today for the three remaining major banking groups, following Nordea’s re-domicile.
FI is publishing today three reports on sustainability. The reports show that the work with sustainability is progressing on several fronts and that the industry’s own initiatives, where relevant, are working. But there is still a lot of work left to be done. FI is also publishing a follow-up report for the Government on FI's work with sustainability-related matters in 2018.
The banks give greater consideration to sustainability aspects in their lending to corporates. However, FI sees a need for more transparency and comparability in the area of sustainability.
The fund industry has created through its self-regulation an information standard that fund managers must use when providing the information needed for a consumer to understand a fund’s management with regard to sustainability. Finansinspektionen (FI) conducted a survey in the summer of 2018 to follow up on and evaluate the industry’s self-regulation in the area.
Sustainability-related risks and opportunities do not differ from the other risks and opportunities that can be linked to financial firms’ operations. Therefore, sustainability should not be managed in limited areas of corporate governance, but rather be an integral part of corporate governance as a whole. In this survey, FI studied how financial firms describe their management of sustainability aspects in corporate governance and how these aspects are integrated into the operations.
FI has conducted a number of supervision activities related to sustainability at the same time as the organisation has been partly restructured and received additional resources. During the year, FI's work has focused on integrating sustainability-related matters into its ongoing supervision, a project that will continue and be intensified.
The major Swedish banks are resilient and have the ability to withstand a sharp deterioration in the market, according to the stress test conducted by the European Banking Authority (EBA).
Finansinspektionen (FI) decided on 31 October not to change the countercyclical buffer rate. The buffer rate of 2.5 per cent, which will be applied as of 19 September 2019, shall thus continue to apply. The countercyclical buffer guide is set at 0.41 per cent.
The members of the international Network for Greening the Financial System (NGFS) acknowledge in their first report that climate-related risks are a source of financial risk. The Network therefore clarifies that it is within the mandates of central banks and supervisors to ensure the financial system is resilient to climate-related risks.
Household debt is not primarily a direct threat to financial stability. However, if the economy takes a turn to the worse, many households may be forced, or even choose, to reduce their consumption in order to continue to be able to pay off their loans. This could exacerbate a crisis and threaten financial stability, determines FI in a report on FI’s use of macroprudential tools.
The International Organization of Securities Commissions (IOSCO) decided today to create a Sustainable Finance Network (SFN).
Discussing how the banks will withstand the next crisis is undoubtedly asuitable topic in October 2018, which marks exactly ten years since the mostdifficult phase of the financial crisis.
FI has decided to raise the buffer rate from 2.0 to 2.5 per cent. The reason for this change is that the systemic risks have increased.
Finansinspektionen has an ongoing dialogue with Nasdaq Clearing given that the company decided to declare a member in the firm’s commodity market in default. Finansinspektionen is also in contact with other affected authorities and organisations.
The procyclical nature of the financial sector tends to amplify cycles and may turn a severe downturn into a financial crisis. One of FI’s tasks is to mitigate this pro-cyclicality.
Nasdaq Clearing AB has decided to declare a clearing member in the firm’s commodity market in default. The member is active in the electricity derivatives markets through trading on the Norwegian Stock Exchange, Nasdaq Oslo ASA. These financial instruments are centrally cleared in Nasdaq Clearing AB, a firm under Finansinspektionen’s (FI’s) supervision.
A speech given by Erik Thedéen, FI's Director General, at the UBS Annual Nordic Financial Services Conference in Stockholm today.
Finansinspektionen grants Nordea Bank AB authorisationto execute the merger plan prepared with its subsidiary, Nordea Bank Abp, under which Nordea Bank AB is absorbed by NordeaBank Abp.
Finansinspektionen publishes the capital requirements of the largest Swedish banks and credit institutions that belong to the supervisory categories 1 and 2 as of the end of the second quarter 2018.
FI’s Board of Directors decides to change the method used to apply the current risk weight floor for Swedish mortgages through Pillar 2 by replacing it with a corresponding requirement under Article 458 of the Capital Requirements Regulation. The change will enter into force on 31 December 2018.
Finansinspektionen (FI) grants Nordea Bank AB authorisation to execute its merger plan and thus move the bank’s head office to Finland.
The European Commission has decided not to propose to the European Council a rejection of Finansinspektionen’s proposal to change the method for the application of the current risk weight floor for Swedish mortgages. This means that the measure may be implemented in Sweden.
Finansinspektionen proposes to raise the countercyclical buffer rate to 2,5 percent. The rate is currently at 2 percent. The change will be effective from the 19 September 2019.
The next occasion on which FI will decide on the countercyclical buffer rate is in September. FI's Director General has decided that the preparatory work for the decision shall focus on enabling an increase in the rate to 2.5 per cent if such is deemed necessary. The countercyclical buffer is currently 2.0 per cent.
Sweden’s traditional bank-based model for granting and financing mortgage loans is challenged by new firms with alternative financing models.
The European Securities and Markets Authority (Esma) published on 3 July 2018 a statement on the exemption for pension scheme arrangements (PSAs) from the clearing obligation. The objective of the statement is to avoid, to the extent possible, disruption after 17 August 2018 when the current exemption for PSAs from the clearing obligation expires.
The ESRB and the EBA have submitted their Opinions to the European Council, the European Commission and Finansinspektionen regarding Finansinspektionen's intention to change its method for the application of the current risk weight floor for Swedish mortgages.
ESMA published new information on 20 June 2018 regarding the LEI requirements under MiFIR. The publication confirms that the last day for the temporary period that was brought-in in December 2017 to allow for a smooth introduction of the LEI requirements will be 2 July 2018.
On Wednesday, 27 June, there will be operational disturbances in the TRS2 production environment due to an upgrade to a new system version.
Finansinspektionen is making changes to the reporting of holdings for funds. The changes will go into effect in January 2019.The changes to the reporting aim to achieve more effective supervision of both individual funds and the fund market as a whole.
Brexit will become a reality when the UK leaves the EU on 29 March 2019. This will change conditions for cross-border trade in financial services to and from the UK. FI describes in this report its analysis of a number of significant economic and legal aspects related to Brexit.
Over the past year, FI has primarily intervened against small-volume trading and ”wash trades” that were carried out deliberately or negligently by private individuals. The financial undertakings’ reporting plays a key role in FI’s possibilities for intervening against market abuse. FI’s cooperation with EBM has contributed to the development of this work. These are the three conclusions in FI’s report, Market Abuse 2017–2018.
Most loans for consumption are small and have a high effective interest rate and a short maturity. Households with large loans represent the largest share of new lending, though, and the large loan segment is growing the fastest. Households with high income have the largest loans. Borrowers with mortgages normally have larger consumption loans than borrowers without mortgages. These are some of the results from FI’s mapping of consumption loans, Swedish Consumption Loans 2018.
On Friday, 8 June, the TRS 2 production environment will still be closed for maintenance.
On Thursday, 7 June, the TRS 2 production environment will be closed for maintenance.
The Swedish economy continues to be strong, and resilience in the financial system is satisfactory. However, a long period of low interest rates and strong growth has resulted in an elevated risk appetite, high asset prices and high debt globally, among Swedish households and on the commercial real estate market. The high level of indebtedness makes the financial sector more sensitive to shocks, and, if necessary, FI will take additional measures to strengthen the resilience.
The Swedish economy continues to be strong, and resilience in the financial system is satisfactory. However, a long period of low interest rates and strong growth has resulted in an elevated risk appetite, high asset prices and high debt. This makes the financial sector more sensitive to shocks, writes Finansinspektionen (FI) in the first Stability Report of the year, which is being presented today.
Finansinspektionen has notified the European Parliament, the EU Council, the European Commission, the ESRB and EBA on the intended measure to change the method for the application of the risk weight floor for Swedish mortgages under Article 458 of the CRR.
Finansinspektionen publishes the capital requirements of the largest Swedish banks and credit institutions that belong to the supervisory categories 1 and 2 as of the end of the first quarter 2018.
The regulatory and supervisory frameworks for banks’ internal rating based (IRB) approaches will be significantly adjusted over the coming years. The overall objective is to increase the robustness of capital requirements and ensure consistency across banks. Well-functioning IRB models are key to the capital assessment of the larger Swedish banks and hence a supervisory priority for FI.
FI has surveyed 25 funds of funds managed by 25 fund management companies and AIF managers. FI has scrutinised how the consumer is informed about fees and how the managers have reported their funds of funds’ objectives and performance.
Theprevailing low interest rate environment is challenging for pension managers who pledge a guaranteed rate of return to their beneficiaries.
Finansinspektionen (FI) has conducted a survey of the management of market risks by savings banks and of their holdings in financial assets. FI’s assessment is that the majority of savings banks are managing their market risks in an acceptable manner.
On Thursday, 3 May, the TRS 2 production environment will experience operational disruptions due to an upgrade to a new system version.
Finansinspektionen (FI) decided on 26 April not to change the countercyclical buffer rate. The buffer rate of two per cent, which has applied since 19 March 2017, shall thus continue to apply. The countercyclical buffer guide is set at 0 per cent.
Pursuant to the Supervision of Public-Interest Entities (Audit) Act (2016:429), FI is responsible for conducting certain audit supervision activities. FI has conducted an investigation into this supervisory area in 2017. This report provides an overview of the investigation’s results and describes FI’s view on how the regulations can be applied.
Finansinspektionen (FI) is issuing Solidar Fonder AB (Solidar) a warning. The company must also pay an administrative fine of SEK 10 million.
On Friday,13 April, TRS 2 will be closed for maintenance.
It is FI’s assessment that firms in general have a greater awareness of the regulations than in previous investigations and are committing more resources to their work to prevent money laundering. But more needs to be done.
Household debt is continuing to rise. The number of new mortgagors with a high level of debt in relation to their income or the value of their home continues to be high. These are the conclusions drawn by Finansinspektionen (FI) from this year’s mortgage survey, which is being presented today. FI also highlights how tenant-owner associations’ debt increases the risks for households.
This FI Analysis presents an assessment of the Swedish mortgage cap. The analysis indicates that the mortgage cap has changed household behaviour. Households with new mortgages borrow less than what they would have done if FI had not implemented the mortgage cap. They are also buying less expensive homes.
Finansinspektionen (FI) follows the development of household debt on an ongoing basis. The mortgage survey serves as an important source of data for this work. High debt can mean risks for individual households, banks, financial stability and the macroeconomic devel-opment.
Finansinspektionen's Director General Erik Thedéen has been re-elected as Vice-Chairman of the International Organization of Securities Commissions' (IOSCO) European Regional Committee (ERC) for the period 2018-2020.
Finansinspektionen (FI) is proposing to change the method it currently uses to apply the current risk weight floor for Swedish mortgages through Pillar 2 by replacing it with a requirement within the framework of Article 458 of CRR. The change is proposed to enter into force on 31 December 2018.
Finansinspektionen (FI) presents in this report the risks consumers are facing on the financial market and that FI is prioritising in its supervision. One recurring prioritised risk is that consumers will be granted loans that are larger than what their personal finances can handle. Another risk that has been prioritised for a long time is the risk that consumers will be advised to invest in products that are not suitable for them.
FI has updated the instructions and FAQs about the periodic reporting firms under Finansinspektionen’s supervision are required to file according to the Anti-Money Laundering Act.
The following is a summary of the year by Director General Erik Thedéen that is included as the introduction to the annual report.
Finansinspektionen publishes the capital requirements of the ten largest Swedish banks and credit institutions as of the end of the fourth quarter 2017.
Anders Kvist has been named a Senior Advisor to FI’s Director General.
FI has translated into English its educational videos about efforts to combat money laundering and terrorist financing.
“The Swedish banking sector is profitable and has satisfactory resilience, but it is clearly undergoing a major transformation,” said Martin Noréus in a speech at SvD Bank Summit in Stockholm.
The Swedish Ministry of Finance, the Riksbank, Finansinspektionen (the Swedish Financial Supervisory Authority) and the Swedish National Debt Office in its role as resolution authority, have produced, together with their equivalents in Denmark, Estonia, Finland, Iceland, Latvia, Lithuania and Norway a new Memorandum of Understanding on cooperation and coordination on cross-border financial stability.
Finansinspektionen is responsible for macroprudential policy in Sweden, which includes both promoting financial stability and counteracting financial imbalances. We are also tasked with promoting a high level of consumer protection on the financial markets. One of the reasons that we have been given the responsibility for macroprudential policy is that financial crises have proven themselves to be very expensive.
Finansinspektionen (FI) decided on 29 January not to change the countercyclical buffer rate. The buffer rate of two per cent, which has applied since 19 March 2017, shall thus continue to apply. The countercyclical buffer guide is set at 0 per cent.
The international Network for Greening the Financial System (NGFS) held its inaugural meeting in Paris last week.
Finansinspektionens Director General Erik Thedéens speech in the Standing Committee on Finance the 23 januari 2018.
FI establishes its adaptation to the new transparency rules that will go into effect on 3 January 2018 in conjunction with the new European regulatory framework: the Directive and the Regulation on markets in financial instruments (MiFID II/MiFIR).
In accordance with the announcement published on 7 December 2017, FI has carried out supplementary transparency calculations for equity instruments and bonds admitted for trading on a Swedish trading venue in November and December 2017.
Finansinspektionen has passed a decision to recognise the Finnish supervisory authority’s decision to implement an average, firm-specific risk weight floor of 15 per cent for Finnish mortgage exposures.
Finansinspektionen (FI) is changing its procedure for handling of applications for permission to use the IRB approach for credit risk.
Finansinspektionen (FI) has identified common errors in the AIFM reporting. FI includes below a list of the most common errors as well as a description of how AIF-managers should fill in the rows in ESMA’s reporting forms.
The outcome of personal injury claims can have a considerable effect on the injured party. Some injured parties do not have confidence for the claims handling process at insurance undertakings. Given the total number of personal injury claims, there are relatively few complaints regarding claims handling.
ESMA, the European Securities and Markets Authority, has published transparency calculations for equities and bonds prior to the entry into force of MiFIR/MiFID II on 3 January 2018. FI will also publish some supplementary calculations.
FI is establishing a fintech innovation centre that will provide information to and maintain a dialogue with companies conducting innovation-based business. This centre and additional initiatives are presented in FI's report to the Government regarding an assignment.
The Swedish economy continues to be strong and interest rates are extremely low, which contributes to high asset prices and low risk premiums. As global interest rates rise in the future, there is a risk for an abrupt increase in risk premiums and a fall in asset prices, which could be stressful for the financial system.
Finansinspektionen (FI) received a mandate from the Government to propose a capital requirement regulation for undertakings providing occupational retirement. The objective is to provide comprehensive protection for consumers (beneficiaries) while at the same time enabling effective management of occupational pensions.