The regulatory package usually referred to as UCITS IV was incorporated into Swedish legislation on 1st August 2011. This necessitated a great deal of work on the part of the Association’s members, but has also created many new opportunities.
August 2011 saw the final implementation of the UCITS IV Directive in Sweden (UCITS is an abbreviation of the English name of the Directive (undertakings for collective investment in transferable securities). The proposal was preceded by extensive review work and the result is a success for the industry. The new legislation addresses not only the opportunities prescribed in the Directive, but a number of issues of substantial importance to the Swedish investment fund market. Wider-ranging amendments to fund provisions than were previously possible are, for example, now permitted, along with the possibility of introducing unit classes.
UCITS IV in brief
- The process of obtaining permission to market and sell fund units in other EU countries is simplified.
- Cross-border fund mergers are permitted, including of funds with different orientations.
- So-called master/feeder constructions are enabled. This means that one fund (the feeder fund) largely invests in another fund (the master fund).
- Information for savers is improved and made more consumer-friendly through the new Key Investor Information Document.
- A fund management companypassport enables a fund to be managed from a country other than the one in which the fund is registered.
- Unit classes are introduced, which means that the same fund can be offered in different currencies, for example.
- Changes may be made to fund provisions, e.g. in order to adjust a fund’s orientation.
- The AIFM Directive regulates all non-UCITS funds.
The UCITS directives have been implemented in Sweden through the Swedish Investment Funds Act (2004:46 and 2011:882) – an Act that also includes national rules applicable exclusively to Swedish investment funds and fund management companies.
The Swedish Investment Funds Act is available in English here (Norstedts Juridik).
Regulations by the Swedish FSA
The Swedish Financial Supervisory Authority has also issued regulations that complement and clarify the Swedish legislation (primarily FFFS 2008:11 and 2011:42).
To the Swedish Financial Supervisory Authority website
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