The Swedish government published its proposition to repeal the Certain Consumer Credit-related Operations Act
On March 18, the Swedish government published its proposition (prop. 2024/25:138) to repeal the Certain Consumer Credit-related Operations Act (2014:275) (Sw: Lag (2014:275) om viss verksamhet med konsumentkrediter, “LVK”).
This means that all companies currently operating under LVK— creditors as well as intermediaries —must apply for either a banking or a credit market company license, subjecting them to significantly stricter regulatory and prudential requirements.
The possibility for intermediaries to apply for a “Credit market company light”-regime has been discussed, meaning intermediaries could remain within a less burdensome regulatory framework. However, the government’s proposal does not introduce any such exceptions.
The regulatory changes are set to take effect on July 1, 2025. Companies holding a consumer credit license before that date may continue operations until the end of July 2026. If an application for a banking or credit market company license is submitted before that deadline, operations may continue until a final decision on the application has been made.
Advisense supports many companies in the consumer credit sector and has deep expertise in navigating the available options to continue operations under the new regulatory framework. Feel free to reach out to us to discuss your next steps.
For more reading click here (the proposition in Swedish).
