FI Publishes Multiple Regulatory Updates in October 2022
The Swedish Financial Supervisory Authority (FI) published a memorandum highlighting the results of supervisory categorization of credit institutions and classification of foreign Swedish branches of credit institutions for 2023, postponed the digital reporting of incidents for payment service providers, and updated the national adaptation of validation rules for periodic reporting, via Fidac, for banks and investment firms. FI also clarified that all amounts in the standard report and interest rate risk report must be stated in whole kroner (without decimals).
Below are the key highlights of these recent updates:
- The Memorandum describes how FI divides Swedish credit institutions into different supervisory categories and the classification of Swedish branches to credit institutions in other European Economic Area countries. The memorandum was revised followed by changes to the method for categorizing credit institutions as a result of the new European Banking Authority (EBA) guidelines on the review and evaluation process. For credit institutions, the changes, when compared to the previous year, show that Entercard Group, Resurs Bank, Collector Bank, De Lage Landen Finans, Hoist Finance, and Ikano Bank have been moved from supervisory category 3 to 4, and during the year, Moank and Nstart received permission to run financing operations and weree placed in supervisory category 4. FI had previously chosen to categorize Skandinaviska Enskilda Banken, Svenska Handelsbanken, Swedbank and Nordea Hypotek in supervisory category 1 and had previously classified Nordea's and Danske Bank's Swedish branches as particularly significant branches.
- Digital Reporting of Incidents. In accordance with EBA's revised guidelines for reporting serious incidents under the Second Payment Services Directive (PSD2), FI has previously notified that it will fully comply with the guidelines and be able to report serious incidents through a digital system from October 01, 2022. However, as the FI's platform for digital reporting of incidents is not yet in place, FI has postponed the possibility of digital reporting of incidents. FI notifies that until a platform for digital reporting is in place, the template on its website must instead be used for reporting serious incidents from October 01, 2022. FI will return with information on when digital reporting can take place at the earliest.
- Validation Rules. For banks, reporting takes place, among other things, in accordance with the FI regulations and the Capital Requirements Regulation or CRR (575/2013). However, for investment firms, from June 26, 2021, reporting has been in place, in accordance with the Investment Firms Regulation or IFR (2019/2033).
- Standard Report and Interest Rate Risk Report. To harmonize the national reporting with the taxonomy-based EU reporting, FI has decided, in connection with the transfer of the Standard Report (F811) and the Interest Risk Report (F809), to change the amount statements from (whole numbers) thousands of kroner to kroner. The companies with a balance sheet total exceeding one billion kroner are permitted to round to the nearest million. Regulations and instructions that are affected will be changed in accordance with the new instructions. As of October 01, 2022, it is possible to submit the report in the production environment in Fidac and the reporting has been enabled in the unit kroner.
Related Links (in English and Swedish)
- Memorandum on Supervisory Categorization of Credit Institutions
- News on Revised Method for Supervisory Categorization
- News on Digital Reporting of Incidents
- New National Adaptation of Validation Rules
- News on Standard and Interest Rate Risk Report
- Clarification on Standard and Interest Rate Risk Report
Keywords: Europe, Sweden, Banking, Reporting, Validation Rules, Investment Firms, Incident Reporting, PSD2, Interest Rate Risk, CRR, IFR, Regulatory Capital, Basel, Fidac, EBA, FI
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Related Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.