Applying for authorization

A business that provides financial services to individuals and businesses in most cases need to receive a permit or a registration from the Swedish financial supervisory authority (SFSA). When reviewing applications for permits the SFSA, among other things, takes into account the company's business, owners and management, as well as the financials. To be approved will require a good knowledge of the financial regulatory framework and practical experience. Since authorization is often critical for financial companies, and as getting it is often a complex and time-consuming process, it is usual for companies to outsource the process to experts in the field in order to ensure the application is successful.

How to apply for permits for financial activities

Writing the permit application to the SFSA is the most time-consuming part of the application process. The time required to prepare the application varies depending on the type of permit you are applying for and must be assessed on a case-by-case basis.

A permit application shall contain the following information:

• Owners and managers
• Nature of business
• The capital adequacy ratio/capital
• Financial forecasts
• Anti-money laundering measures
• Management of conflicts of interest
• Routines and processes for IT and information security

The application needs to be formulated in a way that is easy to understand and should contain references to current regulations and the relevant legal material. It must provide a clear overview of what the company will do as well as what risks exist and how these will be handled.

When the application is submitted, the SFSA assesses whether the application is complete. If the application needs to be supplemented, the company must produce additional documentation before the SFSA can begin the review itself. The processing time varies from case to case and can be stretch between four weeks up to six months (and sometimes takes longer than that). Sometimes questions arise during the course of processing and then additional procedures are required in order for the application process to continue.

Once you have received authorization, your company is under the SFSA's supervision, which means that the agency continuously evaluates risks related to your business through for example mandatory reporting to the SFSA.

Writing a permit application is a complicated process and often requires expert knowledge in several different financial regulatory fields. Companies often choose to hire specialist teams in license applications within financial services. At Apriori, we have extensive experience in writing permit applications for, among other things, AIF managers, investment companies, consumer credit institutes, payment service providers, and currency exchanges. 

The cost of apply for a permit

The SFSA charges a fee when you apply for a permit for your business. The fee is a one-off cost with the aim of covering the SFSA's costs related to the application process. The size of the permit fee depends on the type of permit you apply for.

Individual consultation on permit applications

It is often a good idea to get advice on which permit(s) your company needs to apply for at at the earliest possible point. Since permits often limit how the business can be conducted, it is important to find the right structure for the business right from the start. Otherwise, there is a risk that the operational part of the business does not work as intended, which may mean that you have to apply for a new permit shortly after the business has started its operations.

Apriori has extensive experience in reviewing new business strategies and expose hidden obstacles that might be a different kind of strategies. An early consultation is an inexpensive insurance to avoid expensive costs related to permit processes.