Best practice and self-regulation promote a healthy industry
The Swedish Code of Conduct for fund management companies contains provisions that go beyond that which is required by law and other regulations. The aim is to describe best 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 regulation 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.
The Association has also developed Guidelines to assist the member companies in applying the legal framework.
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
The EU rules governing retail funds (UCITS-directive) are implemented in the Swedish Investment Funds Act. Swedish investment funds are subject to extensive regulation in order to ensure they constitute a reliable investment alternative for retail investors. Only those fund management companies that are subject to supervision by a national competent authority (in Sweden the Swedish Financial Supervisory Authority) may manage Swedish investment funds.
Managers of funds other than investment funds are regulated by the Alternative Investment Fund Managers Act. The majority of these funds do not offer a sufficient level of consumer protection and may, therefore, only be sold to retail investors under certain conditions.
Investment fund operations are also regulated by the regulations issued by the Swedish Financial Supervisory Authority and by EU regulations with direct effect.
National regulation should be avoided
Swedish fund legislation currently only includes a few purely national provisions and the scope for national legal competence is shrinking further, 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 purely 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 at EU level.
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 on a number of EFAMA’s standing committees. The Association is also an active member of the global cooperation organisation, the International Investment Funds Association, IIFA.
ESMA guidelines ensures uniform regulation
ESMA, the European Securities and Markets Authority, adopts an increasing number of guidelines with the aim of ensuring a uniform implementation of the regulations adopted by the EU.
There are a number of guidelines related to funds, both in regards to UCITS funds and managers of alternative investment funds (AIFM).
The Swedish Financial Supervisory Authority has published a memorandum detailing its view of the status of these guidelines in Sweden which, in its opinion, should be regarded in the same way as general Swedish guidelines.
Regulation by the Swedish Financial Supervisory Authority
The Swedish Financial Supervisory Authority has also issued regulations that complement and clarify the Swedish fund legislation (primarily FFFS 2013:9 and FFFS 2013:10).
Information about anti-money laundering measures
Information about anti-money laundering measures (pdf 448 kB)