New best practice rules for Danish funds

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The Danish Investment Fund Association (Investeringsfondsbranchen, IFB) has announced that its members have agreed new best practice recommendations for those managing local funds.

The new recommendations are intended to encourage the industry in its delivery of good products to investors, and ensure that the performance of local funds are maintained relative to funds offered elsewhere in Europe.

IFB notes that while prevailing legislation determines ‘what’ managers may do, it does not provide guidance on ‘how’ they may best do so.

Jens Jørgen Holm Møller (pictured), chief executive, said: “The new best practice recommendations are a practical tool for managers of investeringsforeningerne [local funds] when the are looking to develop the fund’s business model. The end goal is to create the best possible products for investors.”

The industry started its work in January 2014 in response to a 10-point programme of initiatives put forward by the Danish FSA (Finanstilsynet) in 2013. Both the regulator’s proposals and IFB’s recommendations would affect the approximately 760,000 individual Danes who own investment funds, and their invested AUM of some DKK1.7trn (€228bn). The average level of assets per investors is slightly over DKK0.5m, IFB said, adding that there are also corporate and pension sector investors, who together serve nearly all Danes.

The full recommendations published by IFB are available here (in Danish): Best practice september

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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