Researcher at Uppsala University
The Swedish organization of supervision stands out in international comparison by having just one agency, the Swedish Financial Supervisory Authority, responsible for practically all aspects of financial supervision (micro- and macroprudential, consumer protection, code of conduct, money laundering, and more). While this concentration of responsibilities and powers in itself must not be ineffective, I argue that the research on the organization of financial supervision, as well as historical experiences - do suggest that there is an upper limit to how many objectives, or goals, a financial supervisor should be responsible for. In the case of Sweden, policy makers should be wary of adding more objectives to the FSA, as this could affect the quality of the supervision negatively. It may even be sensible to consider transferring some objectives to other agencies. For today's policy makers, potentially transformative market changes may also call for a reorganization of the financial supervision. With new technologies changing the character and organization of financial markets, companies, products and services - financial supervision must change as well.