In order to become authorized, an applicant must satisfy the SFSA that it meets the requirements for authorization set out in the relevant applicable act(s) and SFSA regulations.

The requirements for authorization can vary, depending on the particular regulated activities that the applicant intends to carry on. Broadly, however, the following conditions will need to be satisfied:

1. Location of offices/residence of directors - For Swedish incorporated companies, the head office must be located in Sweden. As to the composition of the board of directors, a majority of the board and the managing director will need to be resident in the EEA.
2. Effective Supervision - The applicant must be capable of being effectively supervised. This emphasizes the need for institutions to have a substantive presence in Sweden that is accessible to Swedish regulators and enables the regulator to supervise the institution. The regulator will also consider whether there are any impediments to supervision of the applicant, including the group structure and any relevant laws restricting access to information.
3. Appropriate resources - Applicants must satisfy the regulator that they have adequate resources to carry on the relevant regulated activities. Resources include financial as well as human resources (including management with the required skills) and infrastructure.
4. Suitability - Applicants must be fit and proper to be authorized, having regard to all the circumstances.
5. Business model - The regulator will examine the applicant’s business model. In addition to understanding the economic aspects of the business, matters such as the impact of the model on clients and that the planned operations will be conducted under the applicable regulations will be regarded.