Regulatory Alerts2022-02-24
General guidelines amending Finansinspektionen’s general guidelines regarding governance and control of financial undertakings
Finansinspektionen amended its general guidelines on governance and control of financial undertakings to remove mutual benefit societies from the scope and delete the second paragraph of Chapter 4, Section 1. The updated guidelines specify that the rules apply to exchanges, clearing organisations, and Svenska skeppshypotekskassan, while explicitly excluding central counterparties regulated under EU Regulation 648/2012. The amendments entered into force on 1 November 2020, with a transitional provision allowing mutual benefit societies to continue under older guidelines until the end of 2020.
Finansinspektionen’s Regulatory Code Publisher: Finansinspektionen, Sweden, www.fi.se ISSN 1102-7460 This translation is furnished solely for information purposes. Only the printed version of the regulation in Swedish applies for the application of the law. 1 General guidelines amending Finansinspektionen’s general guidelines (FFFS 2005:1) regarding governance and control of financial undertakings; decided on 13 October 2020. Finansinspektionen decides with regard to Finansinspektionen’s general guidelines (FFFS 2005:1) regarding governance and control of financial undertakings that Chapter 1, section 2 and Chapter 4, section 1 shall have the following wording. Chapter 1 Section 21 These general guidelines apply to – exchanges, – clearing organisations, and – Svenska skeppshypotekskassan. If appropriate, the general guidelines should also be applied to groups and financial conglomerates. However, the general guidelines do not apply to central counterparties in accordance with Regulation (EU) No 648/2012 of the European Parliament and of the Council on OTC derivatives, central counterparties and trade repositories. Chapter 4 Section 12 Risks which should be managed and controlled include, for example, the following: – credit and counterparty risks, – market risks (interest rate risks, currency risks, and price risks), – liquidity risks, – operational risks (risk of losses due to incorrect or inappropriate internal processes and procedures, human error, defective systems or external events, including legal risks). 1 The amendment entails that mutual benefit societies has been removed from list. 2 The amendment entails that the second paragraph has been removed. FFFS 2020:18 Published on 19 October 2020
FFFS 2020:18 2
- These general guidelines shall enter into force on 01 November 2020.
- However, older general guidelines apply to mutual benefit societies, which, according to the Insurance Business (Implementation) Act (2010:2044), may continue to conduct their operations until the end of 2020. ERIK THEDÉEN Nanny Hiort