Regulations amending Finansinspektionen’s regulations and general guidelines regarding governance, risk management and control at credit institutions

Finansinspektionen’s Regulatory Code Publisher: Chief Legal Counsel Eric Leijonram, 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 Regulations amending Finansinspektionen’s regulations and general guidelines (FFFS 2014:1) regarding governance, risk management and control at credit institutions; decided on 22 June 2021. Finansinspektionen prescribes pursuant to Chapter 5, section 2, point 5 of the Banking and Financing Business Ordinance (2004:329) that Chapter 1, section 3 of Finansinspektionen’s regulations and general guidelines (FFFS 2014:1) regarding governance, risk management and control at credit institutions pensions shall have the following wording. Chapter 1 Section 3 In these regulations and general guidelines the terms and expressions shall mean the following:

1. The delegated regulation for MiFID 2: Commission Delegated Regulation (EU) 2017/565 of 25 April 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council as regards organisational requirements and operating conditions for investment firms and defined terms for the purposes of that Directive.
2. EEA: European Economic Area
3. Remuneration committee: The same as in Finansinspektionen’sregulations (FFFS 2011:1) regarding remuneration systems in credit institutions.
4. Function: a unit or a department comprising one person or several people upon whom it is incumbent to perform one or several tasks within the operations.
5. Internal rules: policy and governance documents, guidelines, instructions or other written documents through which an undertaking governs its operations.
6. Control function: a function for risk control, compliance or internal audit.
7. Limit: an established limit for risk exposure pertaining to e.g. a specific customer, customer group, market or product.
8. Risk management framework: the undertaking’s strategies, processes, procedures, internal rules, limits, controls and reporting procedures that constitute a framework for the undertaking’s risk management.
9. Risk appetite: level and orientation of the undertaking’s risks that are acceptable for achieving the strategic goals of the undertaking. FFFS 2021:21 Published on 30 June 2021

FFFS 2021:21 2 10. Risk exposure: a measure of the risk to which an undertaking is exposed at a certain point in time. 11. Risk culture: professional values, attitudes and behaviour that are of crucial significance to how an undertaking manages its risks. 12. Risk strategy: a strategy for assuming, steering and exercising control of the risks to which the undertaking is or could become exposed. 13. Capital Requirements Regulation: Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and amending Regulation (EU) No 648/2012. 14. Outsourcing agreement: an agreement between an undertaking and a service provider according to which the service provider performs a process, a service or an activity which would otherwise have been performed by the undertaking itself. 15. Senior management: The same as in Finansinspektionen’s regulations (FFFS 2011:1) regarding remuneration systems in credit institutions.

These regulations shall enter into force on 07 July 2021. ERIK THEDÉEN Kristina Wollter