New Criminal Law on Unauthorised Financial Activities Enters into Force
In this article, we examine the implications of the new criminal law on unauthorised financial activities entering into force on 1 March 2026. The legislation introduces criminal liability for companies and individuals conducting financial activities without the required authorisation from, or registration with, the Swedish Financial Supervisory Authority (SFSA) – Finansinspektionen, marking a significant tightening of the regulatory framework.
We outline what the new law means in practice, the potential sanctions for unauthorised financial activities, who is affected, and what boards and executive management should do to mitigate the increased risk exposure.
On 1 March 2026, a new law on criminal liability for unauthorised financial activities will enter into force in Sweden. The legislation represents a significant tightening of the consequences for companies and their representatives that conduct financial activities without the required authorisation from, or registration with, the SFSA. This development marks a clear shift from supervisory enforcement to potential criminal liability, raising the stakes for boards, executives, and business leaders across the financial sector.
What does the new law mean in practice?
Under the new regime, it will be a criminal offence to carry out financial activities that require authorisation or registration with the SFSA without having obtained such authorisation or completed the relevant registration. Criminal liability may arise not only in cases of intent, but also in cases of gross negligence.
The law addresses two principal situations:
- Conducting financial activities without the necessary authorisation or registration, and
- Conducting activities beyond the scope of an existing authorisation, i.e. holding a license for one type of regulated activity while simultaneously performing other regulated activities not covered by that license.
This expansion underscores the importance of clearly defining and continuously reassessing the regulatory perimeter of your operations.
Sanctions and consequences on new criminal law
The offence is divided into two categories:
- Standard offence (unauthorised financial activity): fines or imprisonment for up to two years.
- Aggravated offence (gross unauthorised financial activity): imprisonment for a minimum of six months and up to six years.
The most consequential change is that breaches previously handled within the SFSA’s supervisory framework may now trigger criminal proceedings.
For Swedish limited liability companies, this means that board members and the CEO may face personal criminal liability if the company engages in unauthorised financial activities. This elevates the issue from a regulatory compliance matter to a governance and accountability priority at board level.
With criminal liability now in scope, the risk exposure increases significantly for companies and individual representatives that misjudge their regulatory status.
– Tone Bergfelt, Director Advisense
Who is affected?
The new law is expected to have particular impact on:
- Actors involved in trading unlisted public shares
- Businesses or individuals providing investment advice relating to financial instruments
- Entities managing assets on behalf of clients
- Participants involved in underwriting or guarantee commitments in connection with securities issuances.
However, the implications may extend beyond these categories. Any business operating close to the regulatory perimeter should reassess its position.
Our recommendations
Determining whether an activity requires authorisation or registration is not always straight forward and regulatory boundaries can be complex and ambiguous.
We recommend that you:
- Conduct a structured review of your operations to ensure they are fully covered by existing licences or registrations.
- Assess whether any part of your current or planned activities may require additional authorisation or registration.
- Ensure that the board and executive management have sufficient oversight and documentation regarding regulatory scope and compliance assessments.
Proactive action today can materially reduce risk tomorrow.
How Advisense can support
Advisense provides strategic and hands-on support across licensing, registration and regulatory perimeter assessments. We have extensive experience advising on authorisation and registration matters within the financial sector and support you in navigating the new criminal law on unauthorised financial activities.
By combining deep regulatory expertise with a practical understanding of financial business models, we deliver clear, actionable advice, from regulatory gap analyses and licence assessments to ensuring that your operations are fully aligned with applicable requirements.
Contact us for a structured review of your business or to discuss how the new legislation may impact your organisation.
