Powers of the ISP

Providing information and documents to the ISP

The Government's designation of the ISP as the screening authority in the Screening of Foreign Direct Investments Act (2023:560) means that the ISP is the authority responsible for assessing the notifications and screening the investments notified under the Act.

As an administrative authority, the ISP is subject to the Administrative Procedure Act (2017:900) when handling cases. In accordance with this Act, the ISP may order an individual to remedy a deficiency that results in a submission, such as a notification, to the Authority being incomplete. Under the Administrative Procedure Act, the ISP is also obliged to ensure that a matter is investigated to the extent required by its nature and must, through questions and remarks, endeavour to ensure that the party clarifies or supplements the submission. Pursuant to the Administrative Procedure Act, the ISP may, and in some cases must, approach the investor and request information. In order to be able to fulfil its screening mandate under the Foreign Direct Investment Screening Act, the ISP has also been given special powers under that Act. Pursuant to Section 25 of the Foreign Direct Investment Screening Act, the investor and the company that is or has been the subject of the investment shall, at the request of the ISP, provide the information and documents that the Authority needs for its screening. The Administrative Procedure Act is applicable as soon as the notification has been submitted and a case has been initiated. The aforementioned provision in the Foreign Direct Investment Screening Act applies from the time the ISP has decided to initiate screening.

In the latter case, if information or documents are not provided to the ISP upon request, the ISP may decide to order the investor or the company subject to the investment to provide the information. Such an order may be accompanied by a fine. A fine is an amount of money that the investor or the company subject to the investment may have to pay if they fail to comply with the order.

Giving the ISP access to areas, premises and other spaces

A party intending to invest and the company that is the subject of the investment are obliged to give the ISP access to areas, premises and other spaces used in the activities if this is necessary to enable the ISP to access information and documents that the Authority needs for its screening. The ISP does not have the right to access homes.

If the ISP is not given access to areas, premises and other spaces, the investor or the company that is the subject of the investment may be ordered to give the ISP access. Such an order may be accompanied by a fine (see above). If the investor or the company that is the subject of the investment refuses to give the ISP access, despite the order, the ISP may request enforcement assistance from the Swedish Enforcement Authority. The rules of the Enforcement Code apply in the case of enforcement.

Verification of compliance with conditions

What is said above about the ISP's powers to screen a foreign direct investment also applies after the ISP has granted conditional authorisation for an investment. Conditional authorisation of an investment means that authorisation of the investment is based on the assumption that the investor will comply with the established conditions. The conditions are imposed on the investor and may include that something must be done before the investment is made or that the investor undertakes to do something after the investment has been made. The conditions aim to prevent harmful effects on Sweden's security or on public order or public security in Sweden and will therefore be adapted to the circumstances of the individual case.

If there is a failure to comply with a stipulated condition, the ISP may order the investor to comply with the condition or prohibit the investment, which means that all legal acts that form part of the investment or that have the purpose of carrying out the investment become invalid. The ISP may also decide to impose a sanction charge, with a minimum of SEK 25,000 and a maximum of SEK 100,000,000.