Swedish funds industry urges restraint on proposed commission ban
The Swedish Investment Fund Association has again urged local regulators and lawmakers not to go further than EU requirements when contemplating proposals for a commission ban affecting fund sales.
The call has come in an article penned by Sifa’s CEO Fredrik Nordström for local business-to-business publication Pensioner & förmåner, which targets the local pensions industry.
In the article, Nordström notes that the local funds market already benefits from strong consumer protection combined with simple and transparent processes for the long term saver, which have combined to make funds a popular form of investment among households.
The regulatory framework for the market has grown over time, even as Sifa has developed guidance for its members to ensure good practice. Now Sweden is waiting for the proposals in law for implementing EU rules on advice and commission.
While Sifa sees benefits in a regulatory regime supporting independent advice through a commission ban, it is concerned that the proposals currently put forward in Sweden would result in a broader ban that would “have serious consequences for savers’ abiliity to choose funds from a broad range.”
This latest input into the debate currently affecting the local funds industry is likely not the last as Sifa and its members have identified the proposed changes to payments between providers and intermediaries as one of the top issues they face in 2016.
The full article put forward to Pensioner & förmåner can be read here (in Swedish): http://fondbolagen.se/sv/Aktuellt/Debattartiklar/160330-Viktigt-utvardera-effekterna-av-EU-reglering-innan-Sverige-gar-langre/