Regulatory Alerts2021-09-17
Regulations amending Finansinspektionen’s regulations on operational risk management
Finansinspektionen amended its regulations regarding the management of operational risks to require undertakings to establish internal rules specifying their primary operational risk exposures, identification methods, and risk appetite procedures. These internal rules must address risks from outsourcing and erroneous results, incorporate principles for risk transfer if used, and be decided upon by the board of directors. The regulations entered into force on 29 December 2020 and require consideration of the undertaking's nature, scope, and complexity.
Finansinspektionen’s Regulatory Code Publisher: Chief Legal Counsel Eric Leijonram, Finansinspektionen, 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 2014:4) regarding the management of operational risks; decided on den 15 december 2020. Finansinspektionen prescribes1 pursuant to Chapter 5, section 2, point 5 of the Banking and Financing Business Ordinance (2004:329) and Chapter 6, section 1, point 9 of the Securities Market Ordinance (2007:572) that Chapter 2, section 2 of Finansinspektionen’s regulations and general guidelines (FFFS 2014:4) regarding the management of operational risks shall have the following wording. Chapter 2 Section 2 An undertaking shall have internal rules for its management of operational risks that specify
- which operational risks the undertaking is primarily exposed to,
- in part the methods and processes used to identify, measure and manage operational risks, including the risks arising from outsourcing agreements, which also take into account rarely occurring incidents of a serious nature, and in part procedures for managing the risk of the methods potentially producing erroneous results, and
- the undertaking’s procedures for establishing and monitoring its risk appetite and the limits pursuant to section 1. If the undertaking using risk transfer in its management of operational risks, the principles for this shall be specified in the internal rules. The board of directors shall decide on the internal rules. The undertaking,, when applying the first paragraph, shall take into consideration the nature, scope and complexity of its operations.
These regulations shall enter into force on 29 December 2020. 1 Cf. Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC in the wording according to Directive (EU) 2019/878. FFFS 2020:31 Published den 21 december 2020
FFFS 2020:31 2 ERIK THEDÉEN Sara Ehnlund Martinussen