Appeal: FI may not impose amortization requirements – Swedish newspaper Svenska Dagbladet

The FSA considers that it can introduce a provision for amortization requirements with reference to what the law is called soundness rule of Banking and Finance.

But the Appeal President Staffan Holgersson disagree . Commenting on the referral opinion, dated today, April 16, he writes:

– Financial Supervisory makes a broader interpretation of the soundness of the rule than the legislature intended. It is not possible for an agency to expand its right to issue regulations that way and Appeal rejects therefore the proposal.

Staffan Holgersson, type that a mandatory repayment requirement would have major implications for many borrowers and that there must be clear support in the law to implement the sort of regulations.

Earlier, the organization Villaägarna taken the distance to the proposal in a consultation response. Villa owners believe that amortization requirements under the Financial Supervisory Authority’s proposal, would lead to distortions in the market and that borrowers are looking loopholes.