Active vs passive funds in Swedish government Ucits V inquiry

Jonathan Boyd

Sweden’s minister responsible for financial markets has announced that the next stage in the ongoing government inquiry into Ucits V will address the question of how to enable individual investors to better distinguish between active and passive funds.

Per Bolund has given the inquiry until 31 December this year to report back on outstanding questions following on from the first stage of its work, which has been reported as SOU 2015: 62.

The government is also demanding that the inquiry provide suggestions for “improving the delivery of information and comparisons on how fund mangers integrate sustainability aspects such as environment and climate questions, human rights, working conditions and the fight against corruption into their management.”

The ongoing inquiry has just delivered its first proposals for changes required to Swedish law in order to incorporate the proposals that Ucits V demands. For example, in the area of fund company remuneration policies, it will require structures that encourage responsible management of risk.

The inquiry’s latest document includes proposals for paragraphs to be written into existing law covering fund managers, banking and finance, the securities market, and alternative investment funds.

Ongoing work to meet the 31 December deadline will be supported by a panel of industry and legal experts, as well as a number of deputy directors from the ministry of Finance, which is the responsible department for proposing legislative changes in this area.  Helene Wall, general counsel at the Swedish Investment Fund Association, is part of the group, as well as Johan Florén from AP7.



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