SWEDEN Law and Practice Contributed by: Richard Engblom, Per Josephson, Anna Cumzelius and Amin Bell, Harvest Advokatbyrå
1. Legal Framework 1.1 Key Laws and Regulations Key Laws and Regulations Governing the Swedish Banking Sector A substantial portion of Swedish banking regu - lations is derived from EU directives and regu - lations, reflecting Sweden’s membership in the European Union. However, the primary domestic legislation governing the banking sector in Swe - den is the Banking and Financing Business Act (SFS 2004:297). This act covers various aspects, including rules related to authorisation, govern - ance, operations, corporate provisions, credit assessment, ownership, and supervision. In terms of financial soundness, the Capital Requirements Regulation ((EU) 575/2013) (as amended by Regulation (EU) 2019/876 (CRR II)) (CRR) is directly applicable. Supplementing this regulation are two additional pieces of legisla - tion: the Credit Institutions and Securities Com - panies (Special Supervision) Act (SFS 2014:968) and the Capital Buffers Act (SFS 2014:966), implementing the Fourth Capital Requirements Directive (2013/36/EU) (as amended by Directive (EU) 2019/878 (CRD V)) (CRD). For recovery and resolution matters, the Resolu - tion Act (SFS 2015:1016) is the pertinent national legislation implementing the Bank Recovery and Resolution Directive (2014/59/EU) (as amended by Directive (EU) 2019/879 (BRRD II)) (BRRD). Other laws and regulations applicable to the banking sector, depending on specific services offered, include: • Money Laundering and Terrorist Financing (Prevention) Act (SFS 2017:630); • Payment Services Act (SFS 2010:751); • Electronic Money Act (SFS 2011:755);
• Securities Market Act (SFS 2007:528); • Investment Funds Act (SFS 2004:46); • Alternative Investment Fund Managers Act (SFS 2013:561); • Mortgage Business Act (SFS 2016:1024); • Certain Consumer Credit-related Operations Act (SFS 2014:275); • Insurance Distribution Act (SFS 2018:1219); • Consumer Credit Act (SFS 2010:1846); • Debt Collection Act (SFS 1974:182); • Purchase and Servicing of Non-Performing Credit Agreements Act (SFS 2023:714); • Deposit Business Act (SFS 2004:299); and • Covered Bonds (Issuance) Act (2003:1223). The Swedish Financial Supervisory Author - ity (SFSA) also issues regulations and general guidelines that complement fundamental rules. Regulations are binding, requiring compliance, while general guidelines offer recommendations on adherence to binding provisions. Regulators Supervision of Swedish banks involves multiple authorities: the SFSA, the Swedish Central Bank ( Riksbanken ), the Swedish National Debt Office ( Riksgälden ), and the Ministry of Finance ( Finans - departementet ). These entities collectively form the Financial Stability Council, a forum for dis - cussing financial stability and crisis measures. Decisions, however, are made independently by the government and relevant authorities. SFSA The SFSA is responsible for micro- and macro- level supervision of banks and conducts on-site inspections and requests information to analyse and control operations. It also monitors systemic risks, such as financial imbalances in the credit market.
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