Good practice and regulation for efficient competition

Good practice and self-regulation promote a healthy industry. At the same time it is important to have a regulatory framework which promotes a high level of consumer protection and consumer mobility.

Regulations

Good practice and self-regulation promote a healthy industry

The Swedish Code of Conduct for fund management companies contains provisions that go beyond those required by law and other regulations. The aim is to describe good practice, to promote a sound investment fund sector, and to protect and maintain confidence in the sector.

The aim of the Swedish Code of Conduct is to gather the overriding principles that should characterise a sound investment fund sector. The Code, together with the Association’s guidelines, complements legislation and other regulations by specifying a norm for Swedish investment fund operations. The Association’s member companies shall state, clearly and unambiguously, that they comply with the Code and shall provide an explanation of any deviations from the Code, stating what they have done instead.

Guidelines complement the above and assist the member companies in applying these regulations.

Industry self-regulation through the Association’s Code and guidelines:

  • The Swedish Code of Conduct for fund management companies
  • Guidelines for marketing and information by fund management companies
  • Guidelines for investment fund managers as shareholders
  • Guidelines for Key Ratio Accounting of Swedish UCITS and special funds
  • Guidelines concerning Trading for own and related persons’ account

Two laws govern Swedish investment fund operations

Swedish UCITS:

The EU rules governing consumer funds are contained in the Swedish UCITS Act. Swedish UCITS are subject to extensive regulation in order to ensure they constitute a reliable investment alternative for consumers. Only those fund management companies that are under the supervision of the Swedish Financial Supervisory Authority may manage Swedish UCITS.

Alternative investment funds:

Managers of all funds not classified as Swedish UCITS are regulated by the alternative Investment Fund Managers Act. The majority of these funds do not offer a corresponding level of consumer protection and they may, therefore, only be sold to consumers on certain conditions. Investment fund operations are also regulated by the regulations issued by the Swedish Financial Supervisory Authority and by direct-acting EU regulations.

Separate, national regulation should be avoided

Swedish investment fund-related legislation currently only includes a few regulations drafted at national level, and the scope for national regulation is, furthermore, shrinking as a result of the detailed regulation produced at EU level. The Association believes that it is important, in order to achieve a level competitive playing field, that separate, national regulation is avoided.

The Swedish Investment Fund Association is in regular contact with Swedish politicians, government ministries, and authorities. The Association’s membership of the representative association for the European investment management industry, EFAMA, provides a good platform for the Association’s work with fund-related legislation within the EU.

Cross-border cooperation

The Swedish Investment Fund Association has established an international cooperation network and is actively involved in European cooperation in the field. The Swedish Investment Fund Association’s international work is conducted through, amongst others, the European Fund and Asset Management Association, EFAMA. The Association not only has a seat on EFAMA’s Board, but is actively involved in a number of its various working groups. The Association is also an active member of the global cooperation organisation, the International Investment Funds Association, IIFA.

Regulations by the Swedish FSA

The Swedish Financial Supervisory Authority has also issued regulations that complement and clarify the Swedish legislation (primarily FFFS 2013:9).

To the Swedish Financial Supervisory Authority website

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