December 15, 2016 / 7:25 AM / 7 months ago

Swedish FSA says will not change traffic light model for insurers

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STOCKHOLM, Dec 15 (Reuters) - Sweden's financial regulator said on Thursday it had dropped plans to change its so-called traffic light model for insurers after companies had argued the proposed changes constituted an additional capital requirement.

"Changes in the model can therefore have major consequences for the companies' asset allocation and may by extension also risk to affect the stability of Swedish capital markets," the Financial Supervisory Authority (FSA) said in a statement. (Reporting by Daniel Dickson, editing by Terje Solsvik)

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