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2016-12-27

Regulations amending Finansinspektionen’s regulations regarding UCITS

Finansinspektionen amended its regulations on UCITS to mandate that Swedish management companies adopt internal rules governing personal transactions by relevant persons. These procedures must prevent conflicts of interest, misuse of insider or confidential information, and violations of the Market Abuse Regulation or Swedish UCITS Act. The regulations entered into force on 1 February 2017.

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Finansinspektionen’s Regulatory Code Publisher: Finansinspektionen, Sweden, www.fi.se ISSN 1102-7460 This translation is furnished for information purposes only and is not itself a legal document. 1 Regulations amending Finansinspektionen’s regulations (FFFS 2013:9) regarding UCITS; decided 21 December 2016. Finansinspektionen prescribes pursuant to section 18, point 10 of the Investment Funds Ordinance (2013:588) in respect of Finansinspektionen’s regulations and general guidelines (FFFS 2013:9) regarding UCITS that Chapter 13, sections 2 and 3 shall have the following wording. Chapter 13 Section 2 The board of directors in a Swedish management company shall adopt internal rules which specify the procedures the company shall apply to personal transactions. The procedures shall apply to a relevant person who

  1. is involved in operations that can give rise to a conflict of interest, or
  2. has access to insider information pursuant to Article 7 of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (Market Abuse Regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC, or other confidential information relating to clients of the securities institution’s operations. Section 3 The procedures shall be current and appropriate in order to prevent
  3. the relevant person from entering into a personal transaction a) that violates Regulation (EU) No 596/2014 of the European Parliament and of the Council, b) which entails the misuse or improper disclosure of confidential information, or c) which violates, or is likely to violate, the Swedish management company’s obligations under the Swedish UCITS Act (2004:46),
  4. the relevant person, other than within the scope of his or her employment or contract for services, from advising or influencing another person to enter into a transaction in financial instruments which, if related to a personal transaction of the relevant person, would a) be covered by point 1, or FFFS 2016:37 Published on 28 December 2016

FFFS 2016:37 2 b) constitute misuse of information regarding as of yet unexecuted portfolio transactions, 3. a relevant person, regardless of what is laid down in Regulation (EU) No 596/2014 of the European Parliament and of the Council, other than within the scope of their employment or contract for services, from disclosing information or positions to a third person if the relevant person is aware, or reasonably should be aware, that the other person, as a result of the disclosure, will or probably would a) enter into a transaction in financial instruments which, if relating to a personal transaction of the relevant person, would be such a transaction as referred to in point 2, or b) advise or influence another person to enter into such a transaction.

These regulations shall enter into force on 1 February 2017. ERIK THEDÉEN

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