Guidance - a complement to association Code and Guidelines

The Association has prepared a number of guidance documents alongside the Code of Conduct and the guidelines.

Not all guidance documents are translated into English, all documents can be found in Swedish.

The guidance documents provide the member companies with support in interpreting, and assistance in implementing, the various regulations. They should be regarded as a complement to the Association’s Code and guidelines.

The Association has decided that, in order to create a clearer norm structure, the term ‘guidelines’ should be reserved for the sort of norms with which, in the opinion of the Association, the members should comply. Other norms that are intended more to provide support and assistance with interpretation, should be referred to as guidance, and the Association has, thereby, clarified the regulatory structure.

Another difference between guidelines and guidance is that the guidelines occasionally express requirements that exceed those imposed by laws and regulations, while the guidance, with their supportive nature, in some cases are regulated in laws and regulations.

The aim of guidance documents is to help maintain a sound and transparent investment fund sector by ensuring industry-wide interpretations of laws and regulations.

The association has long worked to produce memoranda that address topical issues for its members. The Association has, for example, published a memorandum on tax on fund saving. The memoranda are a membership benefit (available in Swedish) and can be ordered from the Association but they are also presented in brief in Swedish on the website.

Last updated on the 14th December 2021.

This information standard constitutes non-binding support for fund management companies providing sustainability-related disclosures for the funds they manage. The standard may be used until the dele-gated acts supplementing Regulation (EU) 2019/2088 on sustaina-bility-related disclosures in the financial services sector (SFDR) be-come applicable.

Guidance on sustainability-related disclosures for funds (pdf)

The Swedish Investment Fund Association has decided to produce this guidance to facilitate the production of PRIIP key information documents regarding funds. The purpose of the guidance is to assist fund management companies by summarising the current regulatory framework and interpreting it. The guidance is originally produced in Swedish. The English translation of the guidance aims at providing guidance when KIID for funds established outside Sweden is translated for the Swedish market.

Guidance: PRIIP KID for funds

In accordance with legislation, all UCITS and alternative investment funds (AIF) sold to retail must have an up-to-date key investor information document, hereafter referred to as KIID. This KIID must contain basic and easily understood key information needed for an investor to be able to evaluate the fund. The KIID must be provided to all customers before purchase and be available on the fund management company’s website.

The purpose of the KIID is for the essential information to be presented to the investors in a simple manner. The KIID is to be uniformly drafted in order to facilitate comparison between funds. In order to achieve this, the European Commission has decided that the content in the KIID shall be governed by a regulation which is directly applicable in all the Member States. However, the Regulation is difficult to interpret and, in addition, the Swedish translation contains some lengthy and bureaucratic expressions.

With this guidance, the Swedish Investment Fund Association would like to contribute to investors receiving the best possible tool to use in making their investment decisions. The purpose of the guidance is to provide support to fund management companies in drafting KIIDs and interpreting the Regulation.

The guidance is originally produced in Swedish. The English translation of the guidance aims at providing guidance when KIIDs for funds established outside Sweden is translated for the Swedish market as well as for AIFs that set up a KIID.

Guidance for Key Investor Information Document  (pdf 1.1 mb)

This guidance applies to those fund management companies who report the carbon footprint of their funds.

The aim of the guidance is to coordinate the way in which fund management companies calculate and report CO2 emissions for the companies in which the fund has invested, i.e. not the fund management company’s own emissions. Fossil reserves are not included in this metric.

Guidance for fund management companies’ reporting of funds’ carbon footprints (pdf 78 Kb) 

The Swedish Investment Fund Association recommends its members to publish the key ratio Active Share for equity funds in order to give a description of the activity of a fund in comparison to a relevant benchmark.

There are different ways to calculate Active Share and to facilitate for the fund companies calculations and to promote a consistent and comparable calculation method, the Association has decided on the following guidance. If deviations from the calculation method are made this should be explained.

Active share - guidance for calculation  (pdf 94 Kb)

General principles:

  • The publication is voluntary but those who choose to present the credit ratings of the holdings should follow the guidance.
  • The guidance is developed for funds that primarily invest directly in fixed income instruments.
  • Credit ratings shall be presented for the holdings on the last day of the relevant reporting period.
  • Fund management companies can use their own assessments of the creditworthiness of the instruments that lack official credit ratings.
  • In addition to the chart, the capital weighted share of the fund’s fixed income instruments with official credit rating (regardless of what the fund management company has access to) should be stated.

Guidance for the presentation of credit ratings of fixed income funds' holdings