Sweden’s Financial Watchdog Targets Predatory Investment Firms

Sweden’s financial watchdog says it’s going after firms that sell risky financial products to consumers who are ill equipped to understand what they’ve bought.

Erik Thedeen, director general of the Stockholm-based Financial Supervisory Authority, said the agency has too often seen firms ignoring regulations intended to protect consumers from predatory marketing.

“This could lead to sanctions depending on what we find,” Thedeen said in a speech arranged by the Swedish House of Finance, at the Stockholm School of Economics.

Earlier this year, the FSA pulled the license of a company for selling “very complex” investment products for fees that ...