Swedens financial supervisory authority, Finansinspektionen (FI), formally exchanged a Memorandum of Understanding (MoU) in relation to mutual cooperation with Indias International Financial Services Centres Authority (IFSCA), in the presence of Prime Minister Narendra Modi.
The event marked a significant leap between the two partner nations, strengthening their financial cooperation.
The MoU sets forth a statement of intent of the Authorities to establish a framework for mutual assistance and to facilitate the exchange of information between the Authorities for development, regulation and enforcing or ensuring compliance with their respective law or regulatory requirements.
The IFSCA was established under the International Financial Services Centres Authority Act, 2019 (IFSCA Act) as a unified regulator for development and regulation of financial products, financial services, and financial institutions in the IFSCs in India. The main functions of the IFSCA include registration, supervision, and regulation of financial entities such as banks, stock exchanges, intermediaries, insurers etc. operating within the IFSCs in India.
On the other hand, FI was established in 1991 and is Sweden’s financial supervisory authority. It authorises, supervises and monitors all companies operating in Swedish financial markets. With a formal MoU in place directing all the operations transparently, both IFSCA and FI will co-operate on the basis of mutual trust and understanding to develop and regulate the exchange and knowledge sharing of financial products, financial services and financial institutions.
Injeti Srinivas, Chairperson, of the International Financial Services Centres Authority said: “India and Sweden share strong relations and signing of this bilateral MoU between the two regulators reinforces our commitment to work together in the financial services ecosystem of both the jurisdictions. I am confident that the MoU will help to strengthen supervisory cooperation and partnership. IFSCA and FI have many common areas to work together such as FinTech, Sustainable Finance and Anti Money Laundering (AML), among others.”
Welcoming the move, Deputy Director General of Finansinspektionen, Susanna Grufman, said: “As the financial markets are increasingly becoming more and more global in their character, it is important that we as supervisors also strengthen our cooperation. Many of the challenges we face today are truly global, such as the need to make the financial markets more sustainable, and to combat cybercrimes and other threats directed toward financial institutions and consumers. This memorandum of understanding will create fruitful cooperation between the IFSCA and Finansinspektionen.”
Ambassador of India to Sweden, Tanmaya Lal said that “India Sweden partnership is on the upswing. This MoU covers new ground and will facilitate linkages in banking, insurance, investments and other fintech ventures. It will help in exchange of information, technical assistance, regulatory oversight & enforcement and also build useful linkages”.
Gautam Bhattacharyya, the charge d’affaires at the Embassy of Sweden in New Delhi, said: “I am glad to take part in the formal exchange of an MoU between the Indian International Financial Services Centres Authority (IFSCA) and Sweden’s Finansinspektionen (FI). The MoU will form an important part of the close bilateral relations between Sweden and India. Deepened cooperation on financial services to enhance cross-border participation and promote knowledge sharing has been welcomed by our respective Prime Ministers during a virtual summit in 2021. It therefore gives me great pleasure to see the MoU being formally exchanged in the presence of Prime Minister of India, Narendra Modi. I believe this joint commitment will make way for more interactions and exchanges between Sweden and India within the financial area.”