Legal Framework

In 2004, it became possible for Swedish banks and credit market companies to obtain a licence to issue covered bonds according to the Swedish Act on Issuance of Covered Bonds (Sw. Lag (2003:1223) om utgivning av säkerställda obligationer).

Issuance of covered bonds under Swedish legislation took place for the first time in 2006. The Swedish Ministry of Finance presented a clarifying amendment to the Covered Bonds Issuance Act (SFS 2003:1223). The clarification aimed at the insolvency of the issuing institution and was intended to give the bankruptcy administrator an express mandate, on behalf of the bankruptcy estate, to take out liquidity loans and enter into other agreements for the purpose of maintaining matching between the cover pool, covered bonds and derivative contracts. The Government presented in March 2010 a bill to the Parliament "Liquidity matching for covered bonds following bankruptcy". The Swedish Parliament approved on 21 April 2010 the Government´s bill with amendments of the Covered Bond Issuance Act. It was decided that the amendments (SFS 2010:320) should enter into force on 1 June 2010.

Please note that the English versions in the attached links are non-official translations and furnished for information purposes only. The Swedish versions will prevail.

In 2004 the Swedish Financial Supervisory Authority (Sw. Finansinspektionen) initially issued regulations and general guidelines regarding covered bonds (FFFS 2004:11). As a result of amendments to the law (as partly described above) and a general need to review the current regulations, the Swedish Financial Supervisory Authority decided on new regulations regarding covered bonds (FFFS 2013:1) which entered into force on 1 July 2013.

Swedish Financial Supervisory Authority Regulations