Business Operations in Sweden: SFSA’s Stringent Criteria
In recent years, the Swedish Financial Supervisory Authority (SFSA) has been granting licenses to a select few applicants, while many others have withdrawn their applications or been denied due to the authority’s increasingly stringent criteria. This article provides an overview of the SFSA’s requirements and application process for acquiring or increasing control over a bank in Sweden.
Evaluation Process
The SFSA evaluates applicants not only on formal compliance with regulations but also on whether they have a credible and viable strategy and business model that can generate returns in the long term. As part of its evaluation process, the authority has been focusing on:
- A credible and viable business plan
- A suitable organizational structure
- Financial strength and reputation
- Competence and experience of management
Application Process
The application process is lengthy and costly, often requiring the involvement of external consultants such as lawyers with regulatory expertise and capital adequacy experts. The process involves providing extensive information about:
- Organizational structure of the acquirer
- Financial situation of the acquirer
- Management structure and experience
- Business and financing plans
Handling Time and Additional Information
The SFSA has a handling time of up to 60 working days from the date a formally complete application is filed. During this period, the authority may request additional information if necessary.
Opposition and Appeal Process
If the SFSA decides to oppose a proposed transaction, it must inform the proposed acquirer in writing. The decision may be appealed to the administrative courts of Sweden.
Seeking Specialist Advice
As business operators navigate these complex regulations, it is essential to seek specialist advice about their specific circumstances to ensure compliance with SFSA requirements.
Key Takeaways
- The SFSA’s criteria for acquiring or increasing control over a bank in Sweden are stringent and focus on the acquirer’s credibility, viability, financial strength, and reputation.
- The application process is lengthy and costly, requiring extensive information about the acquirer’s organizational structure, financial situation, management, and business plans.
- It is essential to seek specialist advice to ensure compliance with SFSA requirements.
By understanding the SFSA’s requirements and application process, business operators can better navigate the complex regulatory landscape in Sweden and ensure successful operations.