Swedish regulator proposes stricter controls of persons engaging in controlled functions

The Swedish Financial Supervisory Authority (FI) is proposing stricter rules for those applying for permission to engage in controlled functions in the financial services industry.

The proposal is contained in its latest annual Supervision Report, which is intended to publicise the lessons learned by the authority from its work over the past year.

This would mean deeper assessment of companies and persons receiving authorisation to do business in the financial market, FI said, including new procedures for assessing owners and managers of businesses, and new procedures for the authorisation process.

Commision bias is also under the spotlight, with FI suggesting that it believes a conflict of interest exists involving insurance intermediaries. It proposes the government ban commission for intermediaries.

Better controls on governance and controls in the banking sector, including resolving issues related to financial advice are another area FI highlighted.

There were a number of high-profile interventions in the past year in the area of governance and controls, whch it said need addressing. Rules on bankruptcy and liquidation have proven insufficient, and FI said more work should be done to develop a framework for banks in crisis.

Finally, it proposes that the level of penalties be raised, such that fines paid are proportionate to the size of the firms involved. Thus it proposes to raise the maximum fine it can apply from SEK50m (€5.6m) to SEK500m (€56m).


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