On 21 June 2018 the Financial Supervisory Authority (FSA) published a report on Brexit's potential impact on the Swedish financial market.
Under the assumption of a so-called 'hard Brexit', where the United Kingdom would be treated as a third country, the FSA has identified a number of potential consequences and challenges for the Swedish financial market and the FSA's activities.
For insurance intermediaries, a hard Brexit would preclude the passporting of UK licences on the basis of the freedom of establishment and the freedom to provide services.
UK insurance intermediaries that wish to remain operative in Sweden post-Brexit can choose one of the following:
- establish a Swedish branch; or
- establish a subsidiary in Sweden.
While the procedures differ somewhat, both branches of third country intermediaries and Swedish subsidiaries must apply for FSA authorisation and register with the Swedish Companies Registration Office. As opposed to branches, the subsidiary option offers flexibility in terms of European Economic Area (EEA) access, as it unlocks passporting opportunities.
Intermediaries can also choose to establish a subsidiary in another EEA country, follow that jurisdiction's authorisation and registration procedures and passport into Sweden.
The FSA's processing time and charges for authorisations vary from 90 to 120 days and approximately €2,100 to €6,200, respectively, depending on the nature and timing of the application.
For further information on this topic please contact Caroline Landerfors or Alexander Galfvensjö at Magnusson by telephone (+46 8 463 7500) or email (firstname.lastname@example.org or email@example.com). The Magnusson website can be accessed at www.magnussonlaw.com.
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