Greater transparency for Danish fund investors

The Danish Investment Association, part of Finance Denmark, has confirmed that as of April investors in investment funds will have greater insight into indirect trading costs incurred, expressed as an annualised percentage.

The ÅOP (Årlige Omkostninger i Procent or Annual Costs in Percent) regime means that investors will have access to information about the indirect costs incurred when they invest, in addition to what has traditionally been reported as “costs”. It does not mean any additional costs are being applied, simply that transparency is increased to the benefit of investors, stresses the Association.

The indirect costs arise, for example, because it is not always possible to find a counterparty that wishes to trade at the same price as the investor. This necessitates a shift away from the price that the investor would prefer. In this sense it represents money that is not earned by the fund or banks. The indirect costs will also be different for funds that are trading when compared to individual investors, for example, because of the effects of scale, the Association adds. A full technical briefing on indirect costs has also been published by the Association (in Danish) here:

The ÅOP regime is the result of an agreement between Finance Denmark, Investering Danmark, Forbrugerrådet Tænk (Danish Consumer Council), and Dansk Aktionærforening (Danish Shareholders Association). The agreement is intended to provide access to the same information that financial institutions are meant to provide to their customers under Mifid II. The agreement will run until 1 January 2020, when the  ÅOP regime is intended to be replaced by new EU rules.


Jonathan Boyd
Editorial Director of Open Door Media Publishing Ltd, and Editor of InvestmentEurope. Jonathan has over two decades of media experience in Japan, Australia, Canada and the UK. Over the past 17 years he has been based in London writing about funds and investments. From editing the newsletter of the Swedish Chamber of Commerce in Japan in the 1990s he now focuses on Nordic markets for InvestmentEurope. Jonathan was awarded Editor of the Year at the Professional Publishers Association (PPA) Independent Publisher Awards 2017. Shortlisted for the same in 2016, he was also shortlisted in 2017 and 2015 for the broader PPA Awards category Editor of the Year (Business Media).

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