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Fintech Regulation in Sweden

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Licensing and Authorization

Financial institutions and fintech companies require authorization from the Swedish Financial Supervisory Authority (SFSA) for various activities. The SFSA regulates banking, insurance, pension funds, investment firms, securities trading, and other financial services.

Requirements for Authorization

  • Financial institutions and fintech companies must obtain authorization from the SFSA before engaging in regulated activities.
  • The SFSA has the power to grant, suspend, or revoke authorization as necessary.

Regulatory Frameworks

Sweden has a robust regulatory framework that covers various aspects of fintech. Some key laws and regulations include:

Equity-Based Crowdfunding

  • The Swedish Companies Act (2005:551) regulates equity-based crowdfunding.
  • This act ensures that companies issuing equity-based crowdfunding are subject to the same rules as traditional listed companies.

Alternative Investment Fund Managers

  • The Swedish AIFM Act (2013:561) regulates alternative investment fund managers.
  • This act requires AIFMs to register with the SFSA and comply with specific regulations.

Peer-to-Peer Financing

  • The Swedish Financing Mediation Act (SFA) proposes to regulate peer-to-peer and grassroots financing.
  • This act aims to provide a framework for peer-to-peer lending and other forms of alternative finance.

Specific Regulations

Some fintech activities are subject to specific regulations in Sweden. These include:

Peer-to-Peer Lending

  • Peer-to-peer lending is regulated by the Credit Counseling and Debt Adjustment Act (1999:854).
  • This act ensures that peer-to-peer lenders comply with consumer protection laws.

Crowdfunding

  • Crowdfunding may be subject to the Swedish Companies Act, AIFM Act, or SFA.
  • The specific regulations applicable will depend on the type of crowdfunding and the activities involved.

Invoice Trading

  • Invoice trading is regulated under the Certain Financial Operations (Reporting Duty) Act (1996:1006).
  • This act requires invoice traders to report certain financial transactions to the authorities.

Payment Services

Payment services are regulated by the Second Payment Services Directive (PSD2), which has been implemented in Sweden through the Payment Services Act (2010:751). Some key aspects of payment services regulation include:

Open Banking

  • Open banking requires financial institutions to provide customer data to third parties.
  • This allows for greater innovation and competition in the payments market.

Insurance Products

Fintech companies selling or marketing insurance products require regulation under the Insurance Distribution Act (IDA). This act ensures that insurance distributors comply with consumer protection laws and maintain proper standards of professionalism.

Credit References

Credit references and credit information services are regulated by the Swedish Credit Information Act (1973:1173) and the Swedish Credit Information Regulation (1981:955). These regulations ensure that credit reference agencies operate fairly and in accordance with consumer rights.