prop · GX0330en · 2009-10-13 00:00:00 — Unlimited credit at the Debt office may be used to the extent that there are insufficient funds in the account. Credit institutions, like undertakings based in that have been set up by such a credit institution as a stage of reconstruction (parties required to pay the charge), must pay a fee (stability fee) for each financial year. The fee shall constitute 0.036 per cent of the obligations of the party required to pay the fee at the end of the financial year according to an approved balance sheet, with a deduction for 1.obligations that refer to group companies that are required to pay the fee under this Act, and 2.subordinated debt securities that may be included in a credit institution's capital base according to the Capital Adequacy and Large Exposures Act (2006:1371). If a financial year has covered a period that is longer or shorter than twelve months, the stability fee shall be increased or reduced Government 2009/10:30 Government 2009/10:30 respectively in proportion to the length of the financial year. A deduction shall be made from the stability fee of half the amount paid by the credit institution as fees for such government guarantees for debt securities issued by the Debt Office under this Act for the same period to which the stability fee refers. The maximum deduction that can be made is an amount corresponding to the full stability fee. If half of the amount that the institution has paid in fees for government guarantees for debt securities exceeds the stability fee, the excess amount shall be deducted from the stability fee for the same period for other parties required to pay the fee that, together with the institution, form one and the same group according to the Act (2005:551) and that have concluded a contract concerning the above-mentioned guarantees. The supporting authority shall decide, in accordance with Section 2, the amount that each party is required to pay. The fee shall be paid within one month from the date when the authority made the decision. Penalty interest shall be charged for fees that are not paid on time. Penalty interest shall be calculated according to a rate of interest that each year corresponds to the reference interest rate determined by the Riksbank at any given time according to Section 9 of the Interest Act (1975:635), plus eight Appeals may not be made against decisions made under this Act. The supporting authority shall notify the if a credit institution or undertaking does not fulfil its obligations under this Act. An appeal may be made to a general administrative court against a decision regarding a fee under Chapter 7, Section 3. Leave to appeal is required for appeals to an administrative court of appeal. Appeals may not be made against other decisions made under this Act. 1.This Act enters into force on 1 2009. 2.The stability fee under Chapter 7, Section 2 shall be reduced by half for a financial year that ends in 2009 and 2010. Government 2009/10:30 Government 2009/10:30 Statement of views from Extract from the minutes of a meeting held on Those present: (former of the Supreme Court), (of the Supreme Administrative Court) and (of the Supreme Court). Introduction of a stability fee In accordance with a proposal referred to for consideration on (), the Government decided to obtain a statement of views from on the proposed Act amending the Government Support to (2008:814). The proposal was presented to by (legal advisor). The proposal resulted in the following statement of views from the In the proposal referred to for consideration it is proposed that credit institutions and other undertakings based in that have been set up by such an institution as a stage of reconstruction should pay an annual fee called the 'stability fee'. This fee shall be deposited in the stability fund. This section, which comprises three paragraphs, contains the main provisions governing the stability fee. These provisions are complex. In the view of , they should be broken up into several sections and, in many places, should be reworded to clarify the meaning and make it easier to read. The provisions of first paragraph should, in the view of the Council on Legislation, form two sections instead: Sections 2 and 3. As regards the first paragraph, second sentence of the proposed legislation referred for consultation, the wording states that the stability fee should be calculated on the basis of the 'obligations' of the party required to pay the fee at the end of the financial year according to the balance sheet adopted. The formal consultation states that this word refers to provisions and liabilities in accordance with the terminology used in, for instance, the Annual Accounts Act (1995:1554). emphasised that untaxed reserves should be excluded. Legislation considers that this should be explicitly stated in the statutory wording. The term 'group company' has also been used in the second sentence of the first paragraph without any further qualification. The explanatory comments on the proposed legislation indicate that 'group' means the same as in Chapter 1, Section 4 of the Annual Accounts Act. According to Chapter 1, Section 4 of the Annual Accounts Act for and , this definition shall also apply to credit institutions that must apply the latter Act instead of the Annual Accounts Act. The term 'group' is also used in the final paragraph of the proposed legislation referred for consultation, but here it is explicitly stated that it refers to the term used in the Companies Act (2005:551). As the definition of 'group' contained in the Companies Act does not completely correspond with that of the Annual Accounts Act, the second sentence of the first paragraph should, in the opinion of , include a clarification of what is meant by this term. In light of this, proposes that the first paragraph be replaced by Sections 2 and 3, worded as follows: Section 2 Credit institutions and other undertakings referred to in Chapter 1, Section 2, first paragraph ('parties required to pay the fee') shall pay a fee (stability fee) for each financial year. The stability fee shall be 0.036 per cent of a basis calculated in accordance with Section 3 ('fee basis'). Section 3 The fee basis is the sum of the liabilities and provisions of the party required to pay the fee though not untaxed reserves at the end of the financial year according to the balance sheet adopted, unless otherwise prescribed by the second or third paragraph. The fee basis for a party required to pay the fee where such party forms part of a group according to the Annual Accounts Act (1995:1554) shall be reduced by the corresponding liabilities to other fee-paying undertakings in the group. The fee basis for a credit institution shall be reduced by the subordinated debt securities that may be included in the capital base under the Capital Adequacy and Large Exposures Act (2006:1371). The second paragraph of the proposed legislation referred for consultation should, in the opinion of , constitute a section on its own (Section 4). A minor adjustment should be made so that the provision ends with the following wording: " reduced accordingly in proportion to the length of the financial year". Government 2009/10:30 Government 2009/10:30 Appendix 4 The third paragraph of the proposed legislation referred for consultation comprises three sentences intended to regulate the possibility of making deductions from the stability fee for fees paid for guarantees issued by the Debt Office. As previously mentioned, the term 'group' is mentioned in the last sentence of the paragraph, with a meaning that deviates from the meaning in the first paragraph. It follows from this regulation that the special possibility of a deduction from the stability fee that it should be possible to make within groups according to the last sentence can only benefit those that form part of a group according to the Act. No reasons were given in the formal consultation as to why undertakings that do not meet this requirement, but that are group companies according to the broader definition contained in the Annual Accounts Act, are to be excluded. In the view of , this should be explained in future legislative work. The provisions of the proposed third paragraph should instead be included as three paragraphs in Section 5 of the Act. They may be given the following wording, subject to a reservation concerning 's above question about the proposed definition of 'group': For a credit institution to which the Debt Office has issued a guarantee for debt securities under this Act, a deduction shall be made from the stability fee of half the amount paid by the institution as a fee for the guarantee for the same period to which the stability fee refers. If the amount to be deducted according to the first paragraph exceeds the stability fee and the party required to pay the fee forms part of a group according to the Act (2005:551), the surplus amount shall be deducted from the stability fee for the same period for the other undertakings in the group that are required to pay the fee with which the Debt Office has concluded contracts concerning such guarantees as referred to in the first paragraph. A deduction according to the first or second paragraph may be made of at most an amount corresponding to the stability fee from which the deduction is made. If the breakdown into sections proposed here is approved, Section 3 of the proposed legislation referred for consultation should be redesignated Section 6. Furthermore, consequential changes should be made to the section references contained in that section and in Chapter 7, Section 1 and Chapter 8, Section 3. Government 2009/10:30 Entry into force and transitional provisions It is proposed that the Act enters into force on 1 2009. According to Chapter 7, Section 2, the undertakings in question are liable to pay a stability fee for each financial year. In the opinion of , payment liability shall be deemed to commence when the financial year ends. With reference to the prohibition on retroactivity contained in Chapter 2, Article 10, second paragraph of the Instrument of Government, considers that a transitional provision should be included stating that the new provisions may only be applied for financial years ending after the Act has entered into force. The proposed transitional provision should be included as item 2, for which reason the item 2 that was contained in the proposal referred to for consideration should be redesignated as item 3. Government 2009/10:30 The memorandum's proposed legislation contained in the draft Proposed Act amending the Government Support to Credit Institutions Act (2008:814) It is hereby prescribed, as regards the Government Support to (2008:814), first that Chapter 7, Section 1, Chapter 8, Section 3 and the heading of Chapter 7 shall be worded as follows, second that six new sections (Chapter 7, Sections 2 to 6 and Chapter 8, Section 2 a) shall be incorporated into the Act with the following wording. Current wording Proposed wording Chapter 7 Stability fund Chapter 7 Stability fund and Chapter 2, Section 2 shall be Chapter 2, Section 2, together with deposited into an interest-bearing fees under Section 2 and penalty interest under Section 6 of this Chapter shall be deposited into an the central government and which interest-bearing account at the refer to support provided under this Act shall also be deposited Funds recovered by the central into this account. government and which refer to support provided under this Act (2008:812) shall also be deposited into this account. Monies deposited into the account, together with the other assets acquired pursuant to this Act, constitute the stability fund. The following costs shall be support expenses under this Act covered by funds from the costs of the supporting authority support expenses under this Act, be covered by funds 2. the administration costs of the The same applies to such costs as referred to in Chapter 6, Section 4, second paragraph and costs that under the provisions of under Chapter 6, Section 4, second Act (1971:291) 4. costs that under the provisions referred to in Chapter 6, Section 2 are to be borne by the central referred to in Chapter 6, Section 2 are to be borne by the central may be used to the extent that there are insufficient funds in the 5. compensation paid out owing to a guarantee for depositors under the Government Guarantees Unlimited credit at the Swedish National Debt office may be used to the extent that there are insufficient funds in the account. Chapter 1, Section 2, first paragraph ('parties liable to pay the fee') shall pay a fee ('stability fee') for each financial year. The stability fee is 0.036 per cent of a basis calculated according to Section 3 ('fee basis'). The fee basis is the sum of the liabilities and provisions of the party liable to pay the fee though not untaxed reserves at the end of the financial year according to the adopted balance sheet, unless second or third paragraph. The fee basis for a party required to pay the fee where such party forms part of a Group according to the Annual Accounts Act (1995:1554) shall be reduced Government 2009/10:30 Government 2009/10:30 undertakings in the Group that are required to pay the fee. The fee basis for a credit institution shall be reduced by the subordinated debt securities that may be included in the capital base under the Capital Adequacy and Large Exposures Act (2006:1371). If a financial year has covered a period that is longer or shorter than twelve months, the stability fee shall be increased or reduced respectively in proportion to the length of the financial year. An average of the guaranteed amount for the financial year will be deducted from the fee basis under Section 3 for a credit institution to which the Debt Office has issued a guarantee for debt securities on the basis of this Act. The average is calculated on the basis of the credit institution's guaranteed obligations at the end of each quarter. decide on the stability fee for each party required to pay the fee. fee shall be paid within one month from the date when the authority made the decision. charged for stability fees that are not paid on time. shall be calculated according to a rate of interest that each year interest rate determined by the Appeals may not be made against decisions made under this Act. according to Section 9 of the Interest Act (1975:635), plus eight percentage points. The supporting authority shall notify the if a credit institution or another undertaking does not fulfil its obligations under this Act. An appeal may be made to a general administrative court against a decision regarding a fee under Chapter 7, Section 6. Leave to appeal is required for appeals to an administrative court of appeal. Appeals may not be made against other decisions made under this Act. 1.This Act enters into force on . 2.The new provisions may only be applied for financial years that end after this Act has entered into force. 3.The stability fee under Chapter 7, Section 6 shall be reduced by half for a financial year that ends in 2009 and 2010. Government 2009/10:30 Government 2009/10:30 Consultation bodies and other bodies which on their own initiative have expressed their views on the draft regarding the introduction of a stability fee: Riksbank (Swedish central bank), Debt Office, (Swedish Financial Supervisory Authority), Swedish Bankers' Association, , of , Swedish , FAR SRS (professional sector professionals), Bostadsfinansieringsaktiebolag (), and the Association. Government 2009/10:30 Extract from the minutes of the Cabinet meeting held on 8 October 2009 Those present: (Prime Minister and Chair) and the following Ministers: , , , Husmark , , , , , , , , , Sabuni, , Tolgfors Minister presenting the matter: (Minister) The Government hereby approves 2009/10:30 Stability Fee.