Legal positions

The Swedish financial market regulator, Finansinspektionen (FI), has issued a legal position (2023:1) with respect to the practice of offering insurance coverage for fines and administrative sanction fees resulting from non-compliance with regulatory requirements or criminal offenses. In this position, FI notes that providing such insurance is NOT in line with good insurance business practices as outlined in the Insurance Business Act. The regulator thereby provides the following explanation:
Fines are penalties for criminal acts, while administrative sanction fees are issued for regulatory violations. Insuring against fines and administrative sanctions can potentially undermine compliance with the law, as it removes the legal consequences for violations. Therefore, the FI finds that providing insurance against fines and administrative sanction fees goes against good insurance standards.
This position applies to both domestic and foreign insurance companies operating in Sweden.