In this guest blog, Gernandt & Danielsson provide an update on the Swedish Brexit temporary regime.
The Swedish government has published an amendment to the previously adopted Brexit temporary regime, extending its validity by one year. This means that firms that that are licensed in the UK and who had exercised the right to provide services in Sweden (on the basis of the so-called passport regime) on 29 March 2019 can continue to provide investment services and ancillary services covered by their authorisation in relation to Swedish professional clients with whom the UK firm had an agreement in place on 29 March 2019, until the end of 2021.
This constitutes an extension of the temporary measures by one year until the end of 2021 (whereas previously they were valid until 31 December 2020). There have been no other amendments to the conditions to qualify under the temporary exception from authorisation requirements.
In addition, the Swedish government has published a draft version of another provision, which is expected to be formally adopted later this week. This provision sets out an exemption relating to UK firm’s trading on their own account on a marketplace. Provided that the trading takes place through direct electronic access on a marketplace, the trading is covered by the firm’s authorisation in its home jurisdiction and it does not concern the execution of client orders (e.g. through trading on own account), then such trading is allowed without having a Swedish authorisation in place until the end of 2021. This regulation is also expected to enter into force on 31 December 2020.