SWEDEN Law and Practice Contributed by: Robert Karlsson, Helena Rönqvist, Caroline Landerfors and Vilma Slättegård, Magnusson Law
2.16 Reverse Solicitation Certain regulations have specific reverse solici - tation rules. One example of this is the reverse solicitation provision applicable to investment services set out in Article 42 of the Markets in Financial Instruments Directive (MiFID) II. Anoth - er example is ESMA’s guidelines on reverse solicitation under the MiCA. For other financial firms, there are no clear reverse solicitation rules, which means that the circumstances under which reverse solicitation may occur must be decided on a case-by-case basis. 3. Robo-Advisers 3.1 Requirement for Different Business Models There are no specific legal definitions of “robo- adviser” or “robo-portfolio manager” in Sweden. Companies that provide robo-advisory services or robo-portfolio management services in rela - tion to financial instruments must be authorised by the SFSA to provide investment advice or portfolio management in accordance with the SMA. Different financial instruments would normally not require different business models and would in general be subject to the same authorisation requirement and ongoing regulatory demands. Companies that provide robo-advisory ser - vices or robo-portfolio management services in relation to crypto-assets must normally be authorised by the SFSA in accordance with MiCA, unless the company is exempt from such authorisation requirement under MiCA.
3.2 Legacy Players’ Implementation of Solutions Introduced by Robo-Advisers The initial development in the robo-adviser area was to a large extent driven by niche actors. However, established actors such as banks and existing investment firms entered the mar - ket at a relatively early stage, and several of the major banks as well as internet banks have now implemented robo-adviser and robo-portfolio management services in their business mod - els. Robo-business models range from offering full-scale private financial advice that covers the customer’s entire finances to only offering sim - pler so-called sorting services. 3.3 Issues Relating to Best Execution of Customer Trades Robo-advisors and robo-portfolio managers are subject to the same best execution rules as tra - ditional actors. The SFSA’s supervisory focus in this area has largely been the same as for traditional invest - ment advice business models. In other words, the supervisory focus has been on, among other things, commission-based remuneration mod - els, suitability assessments, conflict of interest and customer information.
4. Online Lenders 4.1 Differences in the Business or Regulation of Fiat Currency Loans Provided to Different Entities General
Most consumer and business lending in Sweden is provided by banks or credit market compa - nies that are authorised in accordance with the SBFBA.
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