Swedish Investment Fund Association supports written confirmation for PPM telesales

The problem of aggressive telesales of services linked to Sweden’s Premium Pension platform would be limited by the introduction of a requirement that any contract agreed verbally by telephone must be supported by written confirmation, according to a response from the country’s Investment Fund Association.

The Association said that it supported proposals to introduce such a requirement, put forward by Pensionsmyndigheten, the Swedish Pensions Agency, for tightening the rules around verbal contracts.

Often, the aggressive telesales involve attempting to persuade long term savers to sign up to asset management or advisory services agreements. However, there is a danger that the way these telesales are pursued could damage the overall faith in the PPM system, the Association said.

PPM is a key distribution platform for funds in Sweden. The system is part of the third pillar of long term savings, intended to enable savers to self-select funds.

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