SWEDEN Law and Practice Contributed by: Robert Karlsson, Helena Rönqvist, Caroline Landerfors and Vilma Slättegård, Magnusson Law
2.6 Jurisdiction of Regulators Main Swedish Regulators
2.7 No-Action Letters Regulatory “no-action” letters are used in various jurisdictions, for example the USA, to confirm that a relevant regulator will not take enforcement action against a person or company for failure to comply with a specific obligation. The SFSA does not issue formal no-action letters, nor binding advance ruling in authorisation cases. There is one exception to this: the SFSA, for a fee, will issue binding advance rulings on whether a planned activity constitutes insurance business. The ESAs – ESMA, EBA and EIPOA – have the power to issue a type of no-action letter in accordance with their founding regulations. While the founding regula - tions do not give the ESAs the power to unilaterally reform or suspend EU legislation, they provide them with the authority, inter alia, to issue non-binding rec - ommendations for amendments to EU law. 2.8 Outsourcing of Regulated Functions Most financial companies, including fintech compa - nies, are subject to extensive rules and requirements concerning how they can outsource their services and functions. The requirements regarding outsourcing differ slightly between various companies depending on which rules are applicable. However, in general, when it comes to the outsourcing of critical or important functions and services, companies must exercise due skill, care and diligence when entering into, managing and terminat - ing the outsourcing arrangement, and when choosing a service provider. Certain regulated companies, such as banks, credit market companies and investment firms, are obligated to notify the SFSA in connection with certain types of outsourcing. As of 17 January 2025, when DORA came into force, specific risk management requirements also apply to providers of outsourced ICT services. The outsourcing of activities to companies outside of the EU presents a greater geopolitical risk. In these cases, the SFSA has underlined the importance of
The SFSA is the supervisory authority that authorises and supervises companies operating regulated activi - ties on the financial market. The SFSA’s mission is to contribute to a stable financial system characterised by high confidence, well-functioning markets and a high level of consumer protection, as well as sustain - ability. The SFSA monitors and analyses trends in the financial market, assesses the risks and control systems in financial companies and supervises com - pliance with statutes, ordinances and other regula - tions. The SFSA furthermore issues regulations and guidelines and contributes to discussions regarding whether existing legislation needs to be amended. The Swedish Consumer Agency (the “Agency”) is spe - cifically tasked with safeguarding consumer interests. The Agency is headed by the consumer ombudsman, who may represent consumer interests in relation to businesses as well as pursue legal action in court. The Agency’s responsibilities include receiving and following up complaints from consumers, providing guidance and information to consumers, identifying consumer issues in different markets, etc. The Privacy Protection Authority is an authority tasked with ensuring the protection of personal privacy. This is done by informing and training those who process personal data, ensuring that applicable laws are com - plied with and exerting influence so that new legisla - tion contains rules that aim to protect privacy. The Agency may also issue sanctions against companies who do not comply with applicable data protection rules. The Swedish Economic Crime Authority is responsible for fighting economic crime such as embezzlement, insider trading, tax fraud and the like. EU Regulators Sweden is a member of the EU. The three European supervisory authorities (ESAs; the EBA, ESMA and EIOPA) issue guidelines and technical standards that are applicable in Sweden and co-operate with the Swedish competent authorities to harmonise financial supervision in the EU.
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