The Swedish investment fund association welcomes almost all of the 30 proposals to strengthen consumer protection on Pensionsmyndighetens fondtorg as the authority unveiled on Thursday.
”We are, however, critical to one of the proposals which would mean köpstoppar funds as soon as the savings from customers in the Swedish premium pension system, is greater than saving outside. The proposal would mean the closure of some of the best and most popular funds for future savers,” says Fredrik Nordström, ceo of the Swedish investment Fund association, according to a press release.
One of the requirements that the Authority proposes is that a maximum of 50% of a fund’s assets under management shall be with the Authority.
”It would beat blindly against the funds that are doing well today and that has lower fees and better returns than the average. It would be the opposite of a strengthened consumer protection”, explains Fredrik Nordström.
The authority proposes , further, that it shall be sek 500 million in the management before it will be possible to register on the fund marketplace.
”It is a difficult situation when our supervisor claims to the protection of consumers in smaller funds would be weaker. It is the supervisory authority that has a mandate to ensure that all funds and fund managers follow the guidelines. The aim seems to be to limit the fondutbudet,” said branschföreningschefen.
He points out that the annual return on the premium pension since the start, has been higher compared to when income-based pension.
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