SWEDEN Law and Practice Contributed by: Richard Engblom, Per Josephson, Anna Cumzelius and Amin Bell, Harvest Advokatbyrå
Banks are further required to comply with the various international financial sanctions that stem from the EU and the United Nations. 6. Depositor Protection 6.1 Deposit Guarantee Scheme (DGS) The Swedish deposit insurance scheme was introduced in 1996 and the responsible com - petent authority is the Swedish National Debt Office. The deposit insurance scheme has been extended on several occasions and today all deposits in banks and credit market institutions are covered. Deposit insurance applies to all private per - sons (including minors), as well as companies and other legal persons, such as the estate of a deceased person. However, financial institu - tions, and public and local authorities are not eligible for compensation. All types of accounts are covered by the deposit insurance regardless of whether they are restrict - ed or free to withdraw. However, individual pen - sion accounts are not covered. Deposit insur - ance also does not apply to bank money orders (cashier’s cheques) because these fall outside the definition of deposits under the Deposit Insurance Act (SFS 1995:1571). For client accounts, the main rule is that eve - ry underlying individual owner of the money receives compensation up to the maximum amount covered. A client account is an account whereby a company has deposited money for several customers in a single account. If the account is covered by the deposit insur - ance, a depositor is entitled to compensation equal to the amount deposited, including inter -
est, up to the date on which the institution was declared in default or the decision to activate the deposit guarantee scheme was made. The insurance provides compensation of up to SEK1,050,000 per depositor. If an account is opened in two or more persons’ names, each person is counted separately. The deposit insurance scheme is financed by contributions from the member banks and insti - tutions, which are invested in a fund. The fees are calculated based on a number of risk indica - tors and the institute’s guaranteed deposits as of 31 December of the previous year. The insti - tute’s fee is also affected by the fact that the total fee must amount to 0.1% of total guaranteed deposits. Based on the risk indicators, a risk score is calculated for each institute. Based on the risk score, the institutes are then divided into different risk classes. The institution’s risk class and size of guaranteed deposits then determine which fee the institution must pay. 7. Prudential Regime 7.1 Capital, Liquidity and Related Risk An individual’s relationship with a bank may not be disclosed without authorisation (this includes both physical and legal persons). Bank confi - dentiality includes all information between the individual and the bank, both written and oral. This also includes whether or not a certain indi - vidual is an actual customer at the bank. However, the duty of confidentiality is not strict, and exceptions can be made when: • there is a statutory obligation; • there is a duty to the public to disclose; Control Requirements Duty of Confidentiality
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