AIF committee delivers recommendations to Sweden’s government
A committee of experts has delivered its final report on recommendations for implementing new alternative investment fund rules, which will also result in more fund management companies coming under the supervision of the Swedish Financial Supervisory Authority (Finanskinspektionen).
Hedge funds, property funds, and other “special” funds will therefore fall under the same supervisory regime locally as Ucits or other regulated funds. In addition, alternative fund management companies will need authorisation from the Supervisory Authority to conduct business.
Helen Wall, general counsel at the Swedish Investment Fund Association, and one of the experts involved in the committee, said: “the new regulatory regime proposed means both opportunities and challenges. For those players that currently are not covered by any equivalent regulation it will be a challenge to adjust the business to the new demands. Fund companies, on the other hand, are already subject to considerable regulation and meet equivalent high demands on their business, so for them the change will not be as great.”
The Association believes that Swedish fund management companies will therefore, with the support of authorisation to pursue AIF business, be able to manage a significantly broader spectrum of funds than is possible currently.
“It will also be possible to export the funds, because the Directive gives the right to market them in all EEA states. The Swedish fund market will be changed because of new players being affected by the fund law. It is likely that more foreign players will be active here. The fund industry therefore stands before great challenges, but also new business opportunities,” the Association added in a statement.