Regulations and General Guidelines Regarding Financial Advice to Consumers

Regulations and General guidelines regarding financial advice to consumers

In force from 2004-07-01

Summary

Finansinspektionen imposes stricter competence requirements for financial advisors. The advisors will also be obligated to advise the consumer against unsuitable investments. The advice shall be provided to the customer in writing.

Through these new regulations, which are a result of new legislation in the area, there is increased responsibility on the part of the undertakings that provide financial advice in conjunction with the sale or brokerage of shares, CIU units or pension insurances.

The regulations mean, among other things, that the advisor's knowledge shall be adapted to how complicated a savings format or investment is, and to the customer's requirements. The undertaking is responsible for ensuring that the advisor's knowledge is verified through a proficiency test that has been approved by an independent party.

Amendments

In order to avoid double regulation, FI decided to limit the scope of the regulations. Therefore, they shall not be applied by AIF managers in accordance with the Alternative Investment Funds Managers Act (2013:561).

Finansinspektionen has also decided to amend the regulations since the Insurance Distribution Act (2018:1219), which replaces the Insurance Mediation Act (2005:405), no longer allows insurance intermediaries the option of conducting some operations under ancillary authorisations. These insurance intermediaries, therefore, shall no longer be considered an exception to the advice regulations. However, a transitional provision is introduced that corresponds to transition regulation 8 in the Insurance Distribution Act.

The updated regulations enter into force on 1 August 2018. Amendment 2018:11

Documents

FFFS 2004:4

Changes

Number

FFFS 2018:11

Date

2018-08-01

Heading

FFFS 2018:11

Number

FFFS 2007:20

Date

2007-11-01

Heading

FFFS 2007:20