Finansinspektionen’s regulations and general guidelines regarding covered bonds (FFFS 2013:1)

Finansinspektionen’s regulations and general guidelines regarding covered bonds

In force from 2013-07-01

Summary

Covered bonds are governed by the Covered Bonds (Issuance) Act (2003:1223) and Finansinspektionen's regulations and general guidelines (FFFS 2004:11) regarding covered bonds. As a result of amendments to the law and a general need to review the current regulations, Finansinspektionen is deciding on new regulations and general guidelines regarding covered bonds.

The purpose of the regulations is to create a regulatory framework that is as clear and effective as possible.

The changes to the new regulations and general guidelines include

amendments regarding the issuing institutions' revaluation of collateral for loans included in the cover pool

the introduction of sensitivity analyses of price changes in property that forms collateral for mortgage loans in the cover pool

requirements on counterparties in derivative agreements

additional duties for the independent inspector.

The regulations apply to banks and credit market undertakings which, pursuant to the Covered Bonds (Issuance) Act (2003:1223), are applying for authorisation to issue covered bonds or have already received authorisation to issue covered bonds.

The new regulations and general guidelines will enter into force on 1 July 2013, at which time the current regulations and general guidelines will be repealed.

Amendments

The amendments introduce new rules on the information issuing institutions must provide to investors and the information the institutions must report to Finansinspektionen. The provisions for the independent inspectors' tasks and reporting obligations are also amended. The reason for the amendments is new EU regulations and amendments to the Covered Bond (Issuance) Act (2003:1223).

The amendments enter into force on 8 July 2022. Amendment 2022:12

FI is amending Finansinspektionen's regulations and general guidelines (FFFS 2013:1) regarding covered bonds. The amendments adapt the regulations to the amendments in the Covered Bonds (Issuance) Act (2003:1223) that the Government is proposing in Bill 2015/16:105.

The proposed amendments to the act entail that the legal requirement on overcollateralisation for Swedish issuers of covered bonds is changed from the current requirement of more than 0 per cent to at least 2 per cent. Because FI's regulations regulate overcollateralisation of more than 0 per cent, they must be amended to avoid being in conflict with when the amended wording of the Covered Bonds (Issuance) Act enters into force. Given this background, FI is adapting the regulations so the overcollateralisation is the same in the act and the regulations.

The amendments enter into force at the same time as the amendments to the act, i.e. on 21 June 2016. Amendment 2016:17

Documents

FFFS 2013:1

Decision memorandum FFFS 2013:1

Changes

Number

FFFS 2022:12

Date

2022-07-08

Heading

FFFS 2022:12

Number

FFFS 2016:17

Date

2016-06-21

Heading

FFFS 2016:17