The Swedish Financial Supervisory Authority (the “SFSA”) (Sw. Finansinspektionen) has recently launched an initiative called the Innovation Compass (Sw. Innovationskompassen).
While the SFSA has traditionally been perceived as somewhat reserved in providing proactive or service-oriented guidance to market participants, the launch of the Innovation Compass marks a shift in approach. This initiative is therefore received with enthusiasm by the financial sector, as it signals a more open and collaborative stance from the authority. Stakeholders are hopeful that this structured dialogue and targeted guidance will foster a more supportive environment for innovation and business development in Sweden’s financial industry.
The SFSA describes the initiative as a new method for identifying needs and provide more targeted guidance on matters relating to innovation and business development. According to the SFSA, the objective with the initiative is to create better conditions for innovation while implementing simplifications within the financial sector. The Innovation Compass is based on a structured dialogue between the SFSA and relevant stakeholders in the financial sector. Firstly, companies will have the opportunity to submit a proposal where the authority’s guidance is needed. Secondly, the SFSA will choose an area based on a submitted proposal and initiate a project over a certain period. Once an area has been selected, the SFSA will invite companies to take part in a reference group for that chosen area to discuss the challenges the companies are facing and guidance is needed. The SFSA will make a final analysis and its conclusions will thereafter be published on the SFSA’s website (fi.se).
The proposals shall concern issues that are
(i) current and innovative;
(ii) relevant to many players in the financial market; and
(iii) within the SFSA's area of responsibility.
Companies which are currently in the process of applying for a license or registration with the SFSA cannot participate in the Innovation Compass. Important to note, the SFSA has clearly stated that this initiative does not replace any license or registration requirements the business may need and it does not lead to binding decisions. Neither does it constitute an exception to any legislation under which the SFSA acts as a supervisory authority. A purpose of the Innovation Compass is to provide the authority with better information for more comprehensive, clear and useful guidance to be issued to the financial sector.
Lastly, the SFSA has stated that the Innovation Compass is not a “regulatory sandbox” which is used by other financial regulatory authorities within the EU/EEA. A sandbox encompasses that individual companies get the opportunity to, under the supervision of the authority and during a limited period of time, test innovative financial products, services or business models.
Companies may until 31 January 2026 submit proposals, given that the requirements for the Innovation Compass are met. You can submit your proposal via this link.
Is your company facing uncertainty regarding a new innovative project or business model that may be relevant for multiple players in the financial sector in Sweden? Please do not hesitate to contact us should you require further information or assistance with submitting a proposal to the Innovation Compass or other advice concerning your company which is or shall be regulated by the SFSA.
Please feel free to drop a note to Johan Ragnar at johan.ragnar@synch.law or Oscar Tollofsen at oscar.tollofsen@synch.law.
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