Regulatory Alerts2022-10-05
Finansinspektionen Regulations Amending Investment Services and Activities (FFFS 2021:27)
Finansinspektionen amends its investment services and activities regulations to establish comprehensive prudential and organizational requirements for securities companies and credit institutions operating in Sweden. The updated rules mandate robust risk management frameworks, including board-level risk committees for larger firms, and introduce strict remuneration governance that ties variable pay to long-term risk-adjusted performance. Additionally, the regulations enforce specific payout structures requiring at least 40 to 60 percent deferral and 50 percent equity-based instruments for risk-affecting staff to align compensation with sustainable business practices.
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