Oversight of the financial infrastructure works well

Date 27/03/2014

This is the first time the authorities have been assessed in accordance with the PFMIs, which were introduced by the CPSS[1] and the IOSCO[2] in 2012.

According to the PFMIs, central banks, financial supervisory authorities and other authorities relevant to the financial infrastructure should be transparent, cooperate with one another, use the PFMIs in their work and ensure that they have the powers and resources required to conduct oversight and supervision.

In the assessment the authorities' oversight and supervision are evaluated according to five responsibilities:

1. Regulation, supervision and oversight of FMIs[3]
2. Regulatory, supervisory, and oversight powers and resources
3. Disclosure of policies with respect to FMIs
4. Application of the principles for FMIs
5. Cooperation with other authorities

Four out of the five responsibilities are assessed to be observed, while the responsibility regarding resources is assessed to be broadly observed. Here the internal audit recommends that the authorities analyse needs and preparedness to ensure that they have sufficient resources for efficient regulation, oversight and supervision of the FMIs.

"The Riksbank applies an effective, so-called risk-based approach in its oversight, which means that resources are focused where they are most needed. It is good that the internal audit department has made an assessment of the oversight and supervision work on the basis of the PFMIs guidelines. We are continually reviewing our priorities and we will now include the internal audit views in this work to assess how we can best observe the PFMIs guidelines," says Susanna Grufman, Head of the Financial Infrastructure Division at the Riksbank.

The joint internal audit of the Riksbank and Finansinspektionen is responsible for independently assessing the operations of the Riksbank and Finansinspektionen. The internal audit work at the two authorities is conducted independently of their other operations.

[1] CPSS stands for Committee on Payment and Settlement Systems and is a committee within the Bank for International Settlements (BIS).

[2] IOSCO stands for the International Organization of Securities Commissions, which is an international organisation dealing with the oversight of securities.

[3] The Riksbank oversees and Finansinspektionen conducts supervision over Euroclear Sweden AB, Bankgirocentralen BGC AB and NASDAQ OMX Clearing AB. The Riksbank also oversees RIX, which does not come under the supervision of Finansinspektionen.