The Swedish Ministry of Finance proposes to repeal the Certain Consumer Credit-related Operations Act
Yesterday, on January 30, the Swedish Ministry of Finance published an update on the proposition from May 7, 2024 to repeal the Certain Consumer Credit-related Operations Act (2014:275) (Sw: Lag (2014:275) om viss verksamhet med konsumentkrediter).
The update includes no major changes from the proposal from May which means that all consumer credit companies currently operating under the act, regardless of whether they only mediate or whether they are their own lenders, will have to apply for either a banking or a credit market company license subjecting them to significantly stricter regulatory and prudential regimes.
The regulatory changes are proposed to come into effect on July 1, 2025. Companies holding a consumer credit license before the effective date are allowed to continue their activities until the end of July 2026. Companies that have applied for a banking or credit market company license before the end of July 2026 are allowed to continue their operations until the license application has been finally processed.
For more reading click here (the document is in Swedish)
