SWEDEN Law and Practice Contributed by: Robert Karlsson, Helena Rönqvist, Caroline Landerfors and Vilma Slättegård, Magnusson Law
11. Open Banking 11.1 Regulation of Open Banking Regulated Methods
proposed regulation successfully comes into effect, it will be legally applicable in Sweden.
12. Fraud 12.1 Elements of Fraud
The primary regulation that allows access to customer data for third-party financial service providers is the second Payment Service Direc - tive (PSD2), which has been implemented into Swedish law through the PSA. Additionally, a financial service provider can access data with the consent of a data subject, in accordance with the GDPR. Unregulated Methods Examples of unregulated methods used for accessing personal data include screen scraping and reverse engineering. Some providers have developed supplementary methods for access - ing personal data, known as APIs. However, the SFSA have stated that APIs are currently not sufficiently widespread or comprehensive to be included under the term “open banking” . 11.2 Concerns Raised by Open Banking The concerns raised about open banking have particularly centred on consumer and privacy protection. In response to these issues, the EU published a proposal on a framework for finan - cial data access, known as the open finance framework, on 28 June 2023. The primary pur - pose of the proposed regulation is to establish clear and well-defined rights and obligations related to the management of customer data sharing within the financial sector. The open finance framework outlines rules for accessing, sharing and utilising certain catego - ries of customer data in financial services. The overarching goal of the proposal is to enhance and ensure consumer and privacy protection in the evolving landscape of open banking. If the
The average Swedish consumer is in many ways reliant on digital tools to carry out day-to-day tasks such as banking through, for instance, BankID. In some cases, BankID is the only way to electronically identify oneself when using cer - tain services. As consumers become more and more reliant on digital experiences, fraudsters are coming up with new and innovative ways of exploiting this vulnerability. Market participants such as banks, the Swedish central bank, the SFSA, etc, are making efforts to ensure that consumers are aware of the com - mon frauds. For instance, Swedish banks have started an initiative called Svårlurad! (the direct translation of which is “difficult to deceive!” ). This initiative includes information about frauds and scams, including common scenarios and how consumers can protect themselves if they are a victim of fraud. The SFSA actively and regularly issues warnings relating to investment fraud and collaborates closely with the industry to counter fraud. 12.2 Areas of Regulatory Focus The SFSA regularly issues warning relating to investment fraud. Further, both the Swedish Consumer Agency and the SFSA have issued repeated warnings related to initial coin offerings and trading in crypto-assets. Coin offerings and crypto-assets currently lack explicit regulation, particularly con - cerning consumer protection, and are deemed high-risk financial products.
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