A stable, well-functioning financial market for allA stable, well-functioning financial market for allNews & Published Material
Here you can find everything that has been published in different news lists on www.fi.se.
2014
FI intends to implement a partial waiver for covered bonds
The European Banking Authority (EBA) has published its opinion regarding the Danish FSA's proposal of a partial waiver from the application of Article 129 (1)(c) of the Capital Requirements Regulation (CRR). Finansinspektionen will also implement the partial waiver within its jurisdicition.
Finansinspektionen and financial stability
Financial stability is the ability of the financial system to uphold its core functions in changing economic conditions. Besides resilience of the financial system, FI has been given responsibility for counteracting imbalances on the credit market.
FI's methods for assessing individual types of risk within Pillar 2
This memorandum describes FI's methods for assessing the capital adequacy requirement within the framework of Pillar 2 for three different types of risk.
Stability in the financial system 2014
In FI's opinion, resilience in the fi nancial system is currently satisfactory. FI's increased capital requirements have helped improve the resilience of banks. At the same time, the banks' need for market funding makes the fi nancial system vulnerable to shocks.
Decision regarding the countercyclical buffer rate
Finansinspektionen (FI) shall, in accordance with the Capital Buffers Act (2014:966), set a countercyclical buffer guide and a countercyclical buffer rate for each quarter.
Leverage ratio requirement for Swedish banks
Finansinspektionen (Swedish Financial Supervisory Authority – FI) considers that a leverage ratio requirement may serve an important function for establishing financial stability in Sweden as a back-stop, which sets a floor for how low the capital adequacy requirement can fall in relation to the banks' gross assets.
Swedish insurance companies assessed in stress test
The European Insurance and Occupational Pensions Authority, EIOPA, has conducted EU-wide stress tests to assess the resilience of European insurance undertakings to adverse market developments. In the Swedish part of the exercise, ten large insurance groups and insurance companies, who account for more than half of the Swedish insurance market, participated.
Victory Life put into liquidation (updated information)
Foreign insurance provider Victory Life has been put into liquidation as of 25 November 2014 by the order of a court of the British Virgin Islands.
Finansinspektionen’s view on the amortisation requirement
Household debt does not represent a risk to financial stability, but it does increase the macroeconomic risks. If designed to be flexible, an amortisation requirement could reduce these risks.
Amortisation by mortgage holders increased since the introduction of individual amortisation plans
New mortgage holders are more likely to amortise after the banks introduced individually tailored amortisation plans as of 1 July 2014. The ongoing debate in the media about amortisation and that the Swedish Bankers’ Association has tightened its recommendations regarding amortisation may also have contributed to the increase in amortisation payments.
Stability risks associated with household indebtedness
FI makes the assessment that the risks associated with household debt have not yet reached alarming levels. However, there are also macroeconomic risks associated with rising household indebtedness.
Measures to counteract household indebtedness – amortisation requirement
FI makes the assessment that an amortisation requirement that is applied in a flexible manner will strengthen in the long run household resilience to shocks. An amortisation requirement will keep house prices down and slow the rate at which debt is growing, and higher amortisation payments will help households reduce their debts and thus their interest expenses.
Swedish banks pass the European stress test
FI has tested the resilience of the major Swedish banks to a sharp deterioration in the economy. The study is part of the extensive stress test of 123 European banks coordinated by EBA.
Enforcement of financial information
2014-10-15 | Reports
Finansinspektionen (FI) is responsible for ensuring that enforcement of periodic financial information is of high, consistent quality.
Capital requirements for Swedish banks
Finansinspektionen presents positions to ensure that the Swedish banking system stands more robustly equipped to withstand future financial crises.
Skandiabanken: adverse remark issued and administrative fine of SEK 10 million imposed
There have been inadequacies in the investment advice that Skandiabanken Aktiebolag has provided through tied agents. The bank has not complied with the rules applicable for receiving commission nor dealt with conflicts of interest in the correct manner.
Stability in the financial system
Sweden has a large and interlinked financial system that is dominated by four major banks. Several measures have been taken in recent years to strengthen its stability, and Finansinspektionen (FI) finds that resilience in the financial system is currently satisfactory.
Authorisation for a bank merger in Skåne
Finansinspektionen has decided to approve the reorganisation of Sparbanken 1826.
Consumer protection on the financial market
Consumers on the financial market face a series of challenges and problems. For example, many savings products are complex, advice is often poor and information is, in many cases, deficient or difficult to understand.
Reinhold Europe shall pay penalty fee for the failure to publish financial information
By a decision made on May 12th 2014, Finansinspektionen has decided that Reinhold Europe AB (formerly Reinhold Polska AB) shall pay a penalty fee of SEK 1 500 000 for the failure to publish periodic financial information.
Capital requirements for Swedish banks
On 3 April, the Government presented a bill regarding strengthened capital adequacy rules.
The Swedish Mortgage Market 2014
2014-04-10 | Reports
A smoothly functioning credit market is fundamental to the ability of modest-wealth households to purchase a home. However, high indebtedness carries a risk for individual households, and can pose a risk to financial stability. It is therefore important for Finansinspektionen (FI) to monitor developments in household indebtedness.
Supervision of the financial infrastructure works well
Finansinspektionen's and The Riksbank's joint internal audit has assessed the supervision and oversight of the financial infrastructures in Sweden on the basis of the "Principles for financial market infrastructures” (PFMIs) which Finansinspektionen use in its supervision and The Riksbank in its oversight.
Nasdaq OMX Clearing receives authorisation to be a central counterparty
Finansinspektionen grants Nasdaq OMX Clearing authorisation to act as a central counterparty in accordance with the EU’s regulation regarding OTC derivatives, central counterparties and transaction registers (EMIR).
Martin Noréus becomes Deputy Director General
FI is expanding and strengthening its organisation with a new position. As of 1 February, Martin Noréus is Deputy Director General.
FI withdraws the authorisation of Exchange Finans
Finansinspektionen withdraws the authorisation to conduct financing business of Exchange Finans Europe.
FI withdraws the authorisation of Festival International
Finansinspektionen withdraws the authorisation of Festival International to conduct investment services.
2013
Bank interest rates and lending, Q3 2013 (Summary)
In this report, Finansinspektionen (FI) describes the banks' adaptations to higher capital requirements and the effects on households and non-financial firms.
Risks in the financial system 2013
Swedish banks are relatively strong, but they continue to be vulnerable to disruptions on the financial markets, and the development within the Euro zone continues to represent a risk to the Swedish financial system.
Bank interest rates and lending, Q1 2013 (Summary)
2013-05-28 | Reports
The development of the margins of new mortgages slowed during Q1 2013. Both the banks' funding cost and households' lending rate for new mortgages continued to fall during the quarter.
Supervision Report 2013
Many of the development trends in today’s financial markets raise important issues for FI. For consumers, greater mobility and increasingly complex financial products represent not only more opportunities but also higher risks. FI needs to bring attention to these risks and resolve them.
Decision to implement a risk weight floor for mortgages
FI is implementing a risk weight floor of 15 per cent for Swedish mortgages. The floor will be implemented as a supervisory measure within Pillar 2.
Finansinspektionen's role in a framework for financial stability
Macroprudential supervision is not a new concept; it has always been a part of traditional supervision work. This statement was part of Martin Andersson's speech at the Bank & Finans Outlook conference on March 20.
The Swedish Mortgage Market
This report is based on Finansinspektionen's (FI's) third large mortgage survey. The survey is based on comprehensive material from the eight largest banks in Sweden.
Implementation of the European supervisory authorities’ guidelines and recommendations
Finansinspektionen finds that guidelines from the European supervisory authorities addressed to competent authorities or financial market participants are equivalent to Swedish general guidelines.
2012
Bank interest rates and lending, Q4 2012 (summary)
Both the banks' funding cost and lending rates to households and corporations fell sharply during the fourth quarter of 2012 while the banks' margins on new mortgages increased slightly. Lending to Swedish corporations and households increased during the fourth quarter, but at a slower rate than before. During 2013 Finansinspektionen (FI) will investigate potential measures for how credit institutions can increase the awareness of their customers for how the actual lending rates for mortgages are determined.
Bank interest rates and lending, Q3 2012
Swedish banks have already largely adapted to the forthcoming requirements regarding capital adequacy and access to liquidity. The stricter requirements involve a cost, but also help improve stability in the financial system. On the whole, the forthcoming requirements will generate positive effects for the national economy.
Risks in the financial system 2012
Finansinspektionen’s (FI’s) 2012 risk report 2012 continues to focus on unease on financial markets, where the greatest risk to the Swedish financial system is still a deepened sovereign debt crisis in Europe. Because of low market rates, life insurance undertakings are under pressure, and FI now sees a risk of consumers ending up in a squeeze as the firms review their commitments. This year too, FI views the financial advice market with concern. In this market, consumers are being invited to invest in complex products while advisors receive commissions.
Bank interest rates and lending, Q2 2012
The growth rate of lending to households and corporations is decreasing, but remains positive and is clearly higher than the corresponding figure for the eurozone. Banks' margins on mortgages increased in the same period, according to the second quarterly report.
Supervision Report 2012
The issues presented in this year’s Supervision Report stem from the work on financial consumer protection, financial stability and the requirements on company owners and management. In addition, the report discusses the increased international work, primarily within the EU.
Market risks management
During 2011, Finansinspektionen (FI) investigated how 11 financial companies market risks management. ‘Market risk’ refers to the risk of loss-incurring value changes in assets and liabilities due to fluctuations in interest rates, foreign exchange rates, stock prices and commodity prices.
Bank interest rates and lending, Q1 2012
In order to strengthen financial stability and avoid future financial crises, new regulations for the banking sector are being prepared. The regulations include higher capital adequacy requirements.
The Swedish Mortgage Market
Loan-to-value ratios decreased for the first time in 10 years and the share of households with new loans over 85 percent has fallen by fifty per cent since 2009. These are some of the findings in Finansinspektionen’s follow-up of the mortgage cap.
Investigation into high frequency and algorithmic trading
High frequency trading contributes to – but is not responsible for – changes in trading. But there is still considerable concern that market abuse has increased and supervision is insufficient. These are the main conclusions from Finansinspektionen’s investigation.
2011
Risks in the financial system 2011
Sweden has remained relatively stable in a turbulent period but during this time the risk level in the Swedish financial system has also risen. The uncertainty in surrounding markets has meant that banks’ liquidity risks and the impact of low interest rates on life insurance undertakings remain in focus. Finansinspektionen also believes there is a risk that the sale of complex products to consumers will increase.
Bonuses: Are companies following the rules?
Finansinspektionen (FI) received an assignment from the Government to report on the implementation of the EU Recommendation on remuneration in the financial services sector, the measures taken to ensure compliance with the new rules and how affected companies have adapted to the recommendations.
Supervision Report 2011
Finansinspektionen's annual Supervision Report discusses areas in which fundamental issues with regard to supervision and regulatory development have risen to the forefront and in turn have resulted in new lessons and conclusions.
2010
Risks in the financial system 2010
Finansinspektionen believes the risk level in the Swedish financial sector is lower than last year. Both Sweden’s economy and the situation on the financial market have improved. However, the uncertainty present in foreign markets represents a potential threat to Sweden’s development.
Lessons learned from supervision and regulatory development
FI's annual Supervision Report describes the lessons learned from the financial crisis as well as more general issues regarding consumer protection.
2009
Unwarranted concern for account fraud
The concern for being victimised by account fraud is greatly unwarranted, according to FI’s survey of 2,898 private persons. The survey, conducted during 2008, found that an estimated 1 per cent of the adult population was defrauded that year. The majority, 84 per cent, of those with claims were fully or partially refunded. The expectations of being refunded were considerably lower, however.
Risks in the financial system 2009
Finansinspektionen is charged with ensuring that the financial system isstable and efficient and that consumer protection is adequate. We carry outthese assignments by conducting supervision of financial companies, whichincludes business intelligence, the granting of licences, preparation of egulations,operational supervision with controls of how companies act andpotential interventions.
The insurance barometer (2009:12)
The insurance barometer, at a total level, summarises the outcome of the insurance companies’ reporting to Finansinspektionen using the traffic light model and solvency for the last five six-month periods.
The households’ financial capability
The majority of the Swedish households have a strong personal financial position and save for the long-term. Most of them have access to a bank account and payment services and three out of four pay by the Internet. This is according to the responses of 1,309 households regarding personal finances. The survey was conducted for FI by Svenskt Kvalitetsindex during the first quarter of 2009.
Consumer protection in the financial markets
FI assesses that the consumer’s position on the financial market is good in general, despite significant conflicts of interest and the complexity of many services. The supply of financial services and number of options has increased over the past decade. This leads to more financial decisions and increased exposure for various risks, and imposes stricter requirements for the consumer’s knowledge.
The banks’ lending for commercial real estate in Sweden
Based on input reported statistical material, we find that the current financial crisis has yet to make any obvious impression in the form of insolvency and credit losses in lending for commercial real estate.
The banks’ financial advice and the law
The overall conclusion is that there is a good census of opinion between bank customers and advisors about how the advisory service should work. Both advisors and customers feel that the advice lives up to the legal requirements.
Development on the mortgage market
Finansinspektionen (FI) has surveyed the development in the banks’ lending for single-family houses and tenant-owner’s flats. At the end of 2008, Swedish households had approximately SEK 1,800 billion in mortgage loans. The investigated banks’ lending constitutes just under 90 per cent of this.
Insurance intermediaries. In the borderland between marketing and mediation
During 2008, FI has conducted a survey of the insurance intermediaries’ operations. The survey has covered 850 insurance intermediaries who have answered a questionnaire containing questions about the operations.
Follow-up of technical provisions within life insurance
We can conclude that several insurance companies (life insurance companies and occupational pension funds) have deficits in their technical provisions and that the primary reason is an underestimation of the policyholders’ life expectancy rates.
How firms have complied with the new securities regulations
The investment firms have made active efforts to adapt to the new regulations for the securities market, the so-called MiFID regulations. This is according to FI’s major review of banks and investment firms during 2008. The investigation has resulted in viewpoints on several areas, many of which aim at strengthening consumer protection.
Complicated financial instruments in occupational pension funds
The occupational pension funds* predominantly have no large holdings or concentrations of complicated financial instruments.
Reclassification of financial assets
Five out of eight banks investigated utilised new opportunities to assess certain financial assets at amortised cost instead of fair value in connection with the interim reports for Q3 2008.
2008
Investment fund annual reports
Finansinspektionen (FI) can conclude that, on the whole, the annual reports reviewed comply with the regulatory requirements – but that improvements can be made in terms of some of the contents. The information in the annual reports shall enable mutual fund investors to assess the fund’s performance as well as provide a basis for fund comparisons.
The insurance companies’ routines for assets covering technical provisions
Our investigation of some 20 insurance companies shows that the companies are managing their register of assets covering technical provisions in a satisfactory manner.
Suitable TV insurance
Consumers are often offered product insurance when they purchase electronic products. If the consumer accepts, the insurance agreement is printed out and signed in the store.
On the way to new European insurance regulations
We are facing great challenges in the insurance sector. A previously typically national, tightly regulated and protected market has been internationalised and subjected to competition. In addition to this is the EU’s overall ambition to create a genuinely inte-grated and common financial market. The aim is to increase competition and effi-ciency, thereby increasing growth and welfare in Europe. The new regulations for sol-vency calculation, Solvency 2, are an important step along the way. This is going to lead to improved methods for analysis and governance of the companies’ risks.
IT disruptions at a constant, high level
IT disruptions are increasing at some companies and decreasing at others. On the whole, the number of disruptions remains at a constant, high level.
NGM's licence reinstated
The Stockholm County Administrative Court has decided that NGM's licence to operate a regulated market and trading facility shall not be revoked. NGM shall instead be issued a warning and a financial penalty of SEK 4.5 million to the government in accordance with Finansinspektionen’s proposal.
The Swedish banks can manage the recession (2008:18)
The four Swedish big banks have managed relatively well so far in the international bank crisis. Financing risks has been the greatest threat to Swedish banks during the autumn's turbulence. Thanks to measures by the Riksbank (Swedish central bank) and the Swedish National Debt Office, these risks have been managed to a great extent until the financing markets begin to function normally again.
A changing pension market
The competition on the life insurance market is increasing. The pensions based on collective bargaining constitute an increasing share of the total life insurance market. Changed tax regulations are affecting motives and opportunities to take out insurance or supplement private insurances. Other types of investment are challenging life insurance companies and that creates new insurance products with a limited insurance element. FI has surveyed the procurement of supplementary pensions for salaried employees and analysed risks that procurements can entail for a changing pension market.
Processing of complaints in the financial sector II
All of the 150 companies contacted report that they have routines for processing complaints. This is a significant improvement compared with the survey that Finansinspektionen conducted in 2005.
FI tightens control of insurance groups
Finansinspektionen has reviewed 51 companies that did not report that they are a part of an insurance group. The result was that 47 of these companies were a part of an insurance group and should thereby have reported to FI. These companies have been informed that they are supposed to report for the year 2007.
Allocation of surplus in traditional life insurance
It is not unusual that as much as one-fourth or more of a final pension is comprised of additional amounts that are based on surpluses. It is therefore significant how the company distributes its surplus to the customers.
The consumer protection on the financial market
Swedish consumers use financial products and services more and more. This makeseveryday life easier and it provides an opportunity to manage risks and to make a goodprofit from savings. This development also benefits the society as a whole.
Not everyone can pay
Not everyone has access to payment services such as giro services or internet banking. It is mainly people with a record of non-payment and those without Swedish civic registration or coordination numbers who lack access to such services. Those who are denied payment services are forced to pay their bills through the banks’ counter service which incurs high costs and is time inefficient.
Children’s insurance – a review of information and compensation
Parents who have a seriously ill child are entitled to compensation through the Swedish Social Insurance Administration. Those who choose temporary parental benefits can jeopardise their right to compensation from their child’s sickness and accident insurance.
The responsibility for the payment system
That the payment system functions and can withstand both internal andexternal incidents such as fire, flooding, power failures, etc. is of greatimportance to the national economy.
Market turmoil and the Swedish banks
The Swedish banks have managed relatively well in the international turbulence prevailing on the financial markets. The four major banks made record profits in 2007 and they all have good financial strength. There are, however, risks in the near future as well as in the long-term. Although these risks are relatively serious, no individual risk is considered to pose a threat to the stability. FI continues to closely monitor the development.
Valuation of unlisted holdings in investment funds
Finansinspektionen can conclude that there is a need for broader guidance in terms of the fund management companies’ routines to valuate assets that are not traded on a regulated market.
The development on the mortgage loan market
The banks’ risk exposures to the Swedish mortgage loan market have increased due to higher mortgage levels and long amortisation periods. The mortgage lending to Swedish households constitutes the largest exposure in the majority of the banks.
Evaluation of securities settlement in Sweden in 2007
The financial markets have several important functions. They convert savings into investments, supply tools for risk management and offer payment services. Securities transactions are essential for all three functions. Securities acquisitions are a way of investing while pledging securities is a way of reducing credit exposure risks.
Market turmoil and the Swedish investment funds
The turmoil on the financial market has caused declining values and large net outflows in certain Swedish investment funds. Furthermore, some securities have become more difficult to value. According to this investigation, the fund management companies have taken actions to satisfactorily deal with this matter.
Trading activities in banks and investment firms
According to Finansinspektionen’s investigation, eight scrutinised banks and investment firms primarily have good routines for managing and appraising the trading risks for products that are difficult to assess. However, more can be done in some areas. The undertakings should improve their routines for independent assessment and control of traders’ prices. Some of the undertakings should allocate more resources for their risk control in order to attain a stronger position in terms of business.
Covering of technical provisions in ten insurance companies
Finansinspektionen has investigated the covering of technical provisions at ten insurance companies. All of the companies had assets that covered the companies' liabilities for technical provisions for the policyholders, in other words full coverage of technical provisions. The assets were also invested in accordance with legal requirements.
SMS loan companies to routinely identify their customers
The SMS loan companies report that they have improved their routines to identify their customers after an investigation by Finansinspektionen.
2007
Action plan for retail investors - a 10-point action plan
Consumer protection problems on the financial market often derive from the consumer’s significant disadvantage vis-à-vis the firm in terms of information. The government’s assignment is to find different ways to level out these types of inequalities. This entails ensuring that financial firms produce relevant information that is presented to the consumer so it can be easily understood. It also entails improving the consumers’ possibilities for finding, understanding and applying relevant information. Educational and informational activities are important parts of this assignment.
The benefit statements of pension companies still vague
The benefit statements for pension savings have not notably improved since Finansinspektionen’s review in 2006. A standard insurance vocabulary that would improve comprehension of the benefit statement is still lacking and many companies still specify fees that consumers pay for pension savings as a lump sum. In addition, too few pension companies explain in simple terms for their investors that the entire sum of the pension capital is not guaranteed.
Insurance companies handle some traffic injuries too slowly
Since Finansinspektionen’s review in 2005, insurance companies have taken some measures to shorten handling times for traffic injuries. Despite these measures, this study shows that there is still more progress to be made andthat companies in some cases are unnecessarily slow.
Insurance companies handle some traffic injuries too slowly
Written share offers not covered by prospectus rules improved slightly over the past year. The information contained in these offers is generally still of low quality, but the total value of unregulated share offers continues to be relatively small. The results of this study have not led FI to propose an increase to the prospectus obligation threshold or national regulations for offers not covered by the prospectus rules.
Stability of the Swedish financial sector (2007:16)
Swedish banks are only marginally exposed to the assets that are affected most by this fall's market turbulence. Rather, the increased risks are coupled to increased lending in the Baltic states. This is the finding of FI's report The stability of the Swedish financial sector, which will be submitted to the Government today.
Standard terms and conditions for financial services
Report in accordance with the 2007 letters of appropriation forFinansinspektionen and Konsumentverket
Government bond market – the need for regulation and supervision
This report discusses Finansinspektionen’s view on the need for regulation andsupervision in the government bond market. FI’s level of ambition in thesupervision of the fixed income market has long been lower than that of itssupervision of the stock market. The reasons for this are primarily historical andno well-documented analysis exists. The need for such an analysis has arisen asthe supervision of financial markets has developed in Europe. In conjunctionwith the introduction of MiFID (the EC Markets in Financial InstrumentsDirective) the need for regulation and supervision in the fixed income markethas been discussed at European level.
Hedge funds and private equity firms - The exposure of banks and insurance companies
Hedge funds and private equity firms have grown in significance in theSwedish financial market in recent years. They are also receiving moreattention. This particularly applies to the failure of hedge funds and spectacularcompany takeovers by private equity capital. In view of this, FI have studiedthe exposure of banks and insurance companies. We have also carried out anoutline study of the administration and risk management related to involvementin hedge funds and private equity firms. FI is following up those firms withexposures that are significant in relation to their own funds. Furthermore, FI isfollowing up indications that suggest shortcomings in the management of a fewfirms.
The process for new issues and initial public offerings
This report describes the process that precedes a new issue or initial publicoffering. It clarifies various phenomena that investors should be aware of whenparticipating in this type of transaction, allowing them to understand andevaluate the offer in its entirety.
New issues and initial public offerings – are safeguards working for investors?
Finansinspektionen (FI) has examined how securities institutions and issuersfollow the regulations for new issues and initial public offerings and whetherthere are risks or problems not covered by the regulation.
Criminal attacks on internet banking
Finansinspektionen's study shows an increase in the number of attacks on online bank accounts, although in relation to the number of Internet transactions the scope of the problem is limited.
Consumer protection in the financial markets
Consumers are responsible for their own decisions when it comes to the purchase of financial services and products. Consumers cannot expect central government to compensate for, or protect against, losses arising from financial risk that they themselves have chosen to take.
Pensions being paid
Normal consumers may need some help in understanding how to calculate thesize of their retirement pension. Recently this has been easier to find out. On example is the development of the Minpension.se web page, which can give an idea of how much national pension and occupational pension based on collective bargaining, has been earned to date. However, private insurancebased pension saving and capital pension policies* are not included in the background data with which minpension.se works.
Insurance-based pensions saving
The insurance market for Swedish consumers has changed a lot over the lastcouple of decades. The range of insurance forms has decreased while forms ofasset management have multiplied. The view of how risk should be sharedbetween companies and policyholders has changed. Policyholders are nowexpected to bear an every greater portion of financial risk.
Information disclosure by fund management companies
This study shows that five of 18 reviewed fund management companiessystematically failed to offer their customers information as stipulated by law.
Advice, the customer and the law - a study of financial advice
In this study, FI has identified a number of areas where companies are most likely deficient in their role as a financial advisor, which can have negative consequences for both the customer and the company.
Credit market companies and consumer protection
Problems in certain credit market companies with permission to receive household deposits* such as Custodia and Allmänna Kapital are the background to the review carried out by FI. Its main purpose has been to investigate whether the problems that have come to light in those firms now declared bankrupt, exist openly or latently in other credit market companies which take household deposits. FI has also had the aim of investigating whether these firms are complying with financial regulations in a more general sense.
Neat and orderly? A review of 678 insurance intermediaries
FI has reviewed the basic requirements for the organisation of 678 insurance intermediaries.
Assessment of Stockholmsbörsen as a central counterparty
Finansinspektionen and the Riksbank have co-operated in the assessment of Stockholmsbörsen as a central counterparty according to international recommendations. Finansinspektionen and the Riksbank have assessed all recommendations as observed for Stockholmsbörsen.
2006
Equity-linked bonds - an evaluation of the new prospectus rules
Investors´strong interest in equity-linked bonds is continuing. In the first nine months banks and other financial institutions issued equity-linked bonds and other index-linked bonds to a value of almost SEK 38 billion.
Firms’ management of operational risk and FI’s recommendations (2006:18)
During the autumn of 2005 and spring of 2006 Finansinspektionen carried out a comprehensive review of the operational risk management in fifteen Swedish banks and credit market companies (firms).
Money laundering and terrorist financing - preventive measures in the finance sector
Finansinspektionen (FI) has studied how well companies in the finance sector are complying with the rules governing the combating of money laundering and terrorist financing.
The right of transfer for savers in pension insurance policies - survey and proposals
FI is positive towards an extended right of transfer for pension insurance policies. It proposes that the government reconsider the issue of an obligatory right of transfer for policies entered into prior to 2006. The right of transfer should cover both personal pension insurance policies and occupational pension insurance polices. FI believes that the problems in introducing the right of transfer for older policies can be resolved in the formulation of the terms and conditions of the right of transfer.
Unregulated invitations to subscribe on the stockmarket
Finansinspektionen (FI) has investigated the quality of the information in writteninvitations to subscribe for shares that are exempt from the prospectus obligation.*
The stability of the Swedish financial sector (2006:14) - a summary
The large banking groups have grown even stronger financially during 2005 and the first half of 2006. Credit losses are virtually zero. With general economic growth likely to continue to improve, risks to systemic stability are low for the foreseeable future.
The warrant market – a review of information provided to non-institutional investors
It has been possible to trade warrants on the Swedish market since 1995. A warran tis a financial instrument that gives the holder the right, but not the obligation, to either buy or sell a share at a predetermined price at a specific date in the future. Payment at redemption is effected by cash settlement. Since its introduction, warrant trading has fluctuated but in recent years it has increased in conjunction with the increasingly strong stock market. From January-June 2006, warrants were traded for a total of SEK 12.1 billion* on the Stockholm Stock Exchange and an additional SEK 7.1 billion on NDX, which is a part of the Nordic Growth Market NGM AB exchange. The majority of trades involve non-institutional investors.
Pension saving and benefit statements
This report is based on Finansinspektionen’s audit of the benefit statements ofthe more than fifty life insurance companies and friendly societies offering insurancepolicies in Sweden.
Unsecured credits for consumers II
On behalf of the government, Finansinspektionen has followed up last year's report "Unsecured credits for consumers". This report sets out the measures that Finansinspektionen has taken, or plans to take, to remedy the shortcomings previously existing in the information and the structure of the contractual terms and conditions and also credit rating. The study covers the same undertakings as last year. We have also studied interest rate trends for unsecured credits in relation to the reference interest rate. During the survey the Swedish Consumer Agency has been consulted.
Mortgage Market Developments
One of the effects of low interest rates is high housing prices. The resultant high demand for mortgages has meant more aggressive competition in the Swedish mortgage market, with effects such as increased lending ratios and pressure on interest rate margins.
Covering of losses by insurance companies – a presentation of various methods
One starting point for the life insurance business is that policyholders should be treated fairly and reasonably. Any surplus that arises in a company should be distributed to policyholders, and the distribution should be based on how they have contributed to the surplus.
Neat and orderly? - a review of 150 insurance intermediaries
Four out of five of the reviewed insurance intermediaries* do not adhere to the rules that by law pertain to their business. By law, insurance intermediaries must check employees’ conscientiousness and competence, and the checks must be documented. They must also establish internal rules to prevent money laundering.
Capital Requirements for Banks with Basel 2
The Basel Committee on Banking Supervision and CEBS have conducted a study on how the new capital adequacy regulations that enter into force next year can be expected to affect the capital requirement for banks. The study is entitled Quantitative Impact Study 5 (QIS 5) and is conducted on data gathered during the autumn of 2005. It encompasses the member countries of the Basel Committee (G10), several EU and EES countries and a handful of other countries.
Fee based on performance? –An examination of 47 mutual fund companies
A large and growing number of fund managers currently apply fees that are associated with returns on savings, and thus also with how successful the manager is in the undertaking.
Market supervision 2006
The basic aims of market regulation are in part to safeguard consumer interests on the financial markets, and in part to promote more efficient markets in a broad sense – these two aims very often coincide. The aims also have a clear underlying common denominator; that is,the desire to ensure all players the high quality level of information needed for them to reasonably assert themselves on the market. The basic problem that market regulation must address regards the uneven access to information and know-how, between various professional players as well as between professional players and households.
Application of international financial accounting standards by companies
As of 2005, all listed companies – financial and other – in the entire EU should apply the new international accounting standards (IAS/IFRS) to their consolidated financial statements. Even if the new standards were applied to a limited extent before 2005, they entail a large, practical readjustment for both companies and investors.
The market for overdue accounts and debt collection
Finansinspektionen and Datainspektionen (The Swedish Data Inspection Board) have joined forces to examine the market for the sale of overdue accounts.
Information disclosure by mutual fund companies
The information provided by mutual fund companies to their customers in accordance with legislation forms the basis of consumer protection in the mutual fund area.
2005
The consumer and advice
FI considers that the rules governing financial advice have resulted in notable improvements for the consumer. This is demonstrated in the study The consumer and advice, which was recently published by FI.
Internal transactions in life insurance companies – a follow-up inquiry
For several years, FI has emphasized the need for confidence-building measures within life insurance companies, in which mutuality requires that interests of savers must be assigned special importance.
From Account to Account VII
On behalf of the government, FI has conducted an investigation during 2005 into the fees charged by banks and the information provided concerning cross-border payments, as well as the banks' procedures for cooperation agreements.
The stability of the Swedish financial sector (2005:10) - a summary
Looking at the official reports, the Swedish life-insurers, previously severely hit by declining equity prices and interest rates, have improved their financial performance during the last two years. How-ever, if one looks at the figures that emerge if realistic interest rates are applied, the outcome is clearly more negative - in fact, solvency har decreased for six years.
Processing of complaints in the financial sector
Finansinspektionen (FI) has studied how well companies follow FI's regulations and general guidelines regarding the processing of complaints. The study included 196 companies in the banking, fund management, securities and insurance sectors.
Companies' internal capital assessment – assessing capital requirements in accordance with Basel II
Commencing 2007, the reformed Basel Rules - also called Basel II - will be applicable in Sweden and the rest of the EU. Corresponding rules will also be implemented in a number of other developed countries. These rules directly affect all credit institutions and investment firms as well as the au-thorities that engage in supervision and monitoring of financial institutions and markets. However, the institutions' customers will also be affected in very specific ways - interest rates for different types of loan and to different customers will, for example, be affected. Thus, all are affected by the new rules. This in itself represents a good reason to disseminate awareness of the new regulatory regime and its various constituent parts.
Enhanced protection for victims of traffic accidents – a review of processing times and information
FI is following up its report “Stärkt skydd för trafikskadade” [Enhanced protection for victims of traffic accidents] (2003:1).
The financial electricity market
Authority (FI)), the financial energy trading establishment leaves something to be desired interms of its management of communications and manner of dealing with conflicts of interest. It is important to address these shortcomings in the interests of improving the functioning of the market and increasing participation in the market. At the same time, from a regulatory viewpoint, the financial electricity market is not sufficiently significant to justify a higher ranking among FI's priority areas and an intensification of FI's involvement in this area at the expense of its other responsibilities.
Fees charged by life assurance companies
The study includes the fees charged for life assurance policies in which there is a guaranteed amount of benefit. The Swedish Financial Supervisory Authority (FI) carried out a study of life assurance fees during 2001–2003. The period selected was based on a discussion with the industry whereby it was not reasonable to demand material an earlier in time.
Unsecured credits for consumers
Finansinspektionen (FI), on assignment from the Swedish Ministry of Finance, hasexamined the market for unsecured credits for consumers, that is, credit without theprovision of collateral. The survey was conducted in cooperation with the SwedishConsumer Agency.
Crisis readiness in the finance sector
Since 2000, Finansinspektionen (FI) has conducted exercises, arranged seminars and undertaken analyses aimed at strengthening the financial sector's crisis readiness for operative risks of a character that could threaten society.
Insurance broker commissions in the life insurance market
Finansinspektionen has examined insurance broker commissions of 17 life insurance companies. This report helps to explain the structure of broker commissions in the Swedish life insurance market for traditional with-profits business as well as for unit-linked business.
Index bonds - Examination of written information to purchasers
Finansinspektionen (Swedish Financial Supervisory Authority) has examined the written information that is provided to purchasers of index bonds. According to the statutory provisions, the information should provide a fair reflection of the offering and enable well- founded evaluations of it.
2004
From Account to Account VI
In this report, which is the sixth in the report series From Account to Account, the Finansinspektionen (Swedish Financial Supervisory Authority - FI) de-scribes the results of a survey of currency exchange surcharges and fixed charges applied by Swedish banks to card transactions within the EES. The re-port also describes the measures taken by FI since publication of the previous report, which identified shortcomings in the way in which customers were in-formed. FI examined Föreningssparbanken, Handelsbanken, SEB, Nordea, ICA-banken and Skandiabanken.
The stability of the Swedish financial sector (2004:9) - a summary
The Swedish life-insurers, previously severely hit by declining eq-uity prices, have clearly improved their financial performance during 2004. However, some of the companies are still vulnerable, due to low solvency. This requires a continued close monitoring by Fi-nansinspektionen
Conflicts of interest in mutual fund companies
Finansinspektionen (FI) has conducted an investigation into conflicts of interest in mutual fund companies. The purpose of the survey was to identify, review and analyze potential conflicts of interest in mutual fund companies and the companies’ management of such.
Procedures relating to customer orders at securities companies
Finansinspektionen (FI) has conducted a review of how securities companies execute orders from private clients based on current rules, including industry regulations.
Increased household lending - a risk analysis
Lending to households has risen at a high and fairly steady rate – about 10% per year – during the past few years. The main increase has been in mortgage loans. The growth has been fuelled by historically low interest rates leading to rising house prices and, consequently, a greater need for financing. The sharp growth in lending has caused Finansinspektionen (FI) to review the banks' lending activities and to assess the possible consequences of this development for FI's financial stability targets and for maintaining a satisfactory level of consumer protection.
