Swedish funds association argues for level playing field on transparency of intermediation costs
Following on from the latest proposals for MiFID II agreed by the European Commission, Parliament and Council, the Swedish Investment Fund Association has called for the local regulator to ensure a level playing field in the area of payments to intermediaries.
The Swedish Investment Fund Association has made the call particularly in light of the proportion of the management fee that insurance companies and fund supermarkets take in order to, for example, cover the costs of administration and maintaining lists of shareholders.
However, the Association points to research by EFAMA, the European body that represents national fund associations, which suggests that up to half of all management fees will go to such intermediation – which is often required for funds to obtain better distribution opportunities.
What is important, ultimately, the Swedish Association adds, is that the end investor is informed of how the distribution is remunerated, and to what extent.
However, this commitment to transparency should be applied by the regulator, the Swedish Financial Supervisory Authority (Finansinspektionen) in a way that creates a level playing field between investment funds and other types of investments and savings that also rely on intermediated sales and distribution.