Besides, there is a news report on securitisation by a Swedish municipality - click on our news page here . There are difficulties relating to capital requirements - see below under legal issues. For all these transactions the SPVs were outside Sweden to avoid the demand for capital coverage which would have been the case for Swedish SPVs under existing legislation. The mortgage market itself in Sweden is very well developed, though. However, nothing great has been done on the legislative front since then.
Present law requires notice to debtors for assignment.
Besides, an SPV may be regarded as a credit institution under the Credit Companies Act - thereby requiring regulation of the Financial Supervisory Authority. The new law was expected to be approved in Jan., 2000. The new law intended to alleviate the difficulties under the existing law. Securitization is possible under existing legislation, but costly as the SPV is required to maintain a certain level of capital coverage. In order to avoid the capital costs, SPVs have so far been set up abroad, where legislation permits this type of transaction without demand for capital coverage.