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2020-02-05

Regulations amending Finansinspektionen’s regulations regarding Swedish UCITS

Finansinspektionen issued regulations amending its Swedish UCITS rules to introduce new disclosure requirements for institutional investors. The amendments mandate that UCITS annual reports include specific information on investment strategy, turnover costs, proxy advisor usage, securities lending policies, and conflict of interest management. These provisions apply to annual reports submitted starting in 2020, following their entry into force on 25 June 2019.

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Finansinspektionen’s Regulatory Code Publisher: Finansinspektionen, Sweden, www.fi.se ISSN 1102-7460 This translation is furnished solely for information purposes. Only the printed version of the regulation in Swedish applies for the application of the law. 1 Regulations amending Finansinspektionen’s regulations (FFFS 2013:9) regarding Swedish UCITS; decided on 18 June 2019 Finansinspektionen prescribes1 pursuant to section 18, point 18 of the Swedish UCITS Ordinance (2013:588) that a new section shall be inserted into Finansinspektionen’s regulations (FFFS 2013:9) regarding Swedish UCITS, Chapter 31, section 54a, and a new heading inserted immediately preceding Chapter 31, section 54a with the following wording. Chapter 31 Information requirements for certain UCITS Section 54a If an institutional investor as referred to in Article 2 of Directive 2007/36/EC of the European Parliament and of the Council of 11 July 2007 on the exercise of certain rights of shareholders in listed companies, as worded according to Directive (EU) 2017/828 of the European Parliament and of the Council, has invested in a UCITS and the UCITS’s assets are placed in shares admitted for trading on a regulated market and that have been issued by a company within the EEA, the annual report – in addition to that set out in sections 2–54 – with regard to such shares shall contain information on

  1. how the UCITS’s investment strategy contributes to the performance of its assets in the mid- to long-term,
  2. the turnover costs of the UCITS,
  3. the use of proxy advisors for the purpose of engagement activities that issued the shares included in the UCITS,
  4. policies on securities lending and how these are applied to fulfil the involvement, where applicable, in particular at general meetings in the companies that issued the shares included in the UCITS, and
  5. Whether any conflicts of interest have arisen in conjunction with the investment and, if yes, how they have been handled. Information that is available for the public does not need to be included in the report. 1 Cf. Directive 2007/36/EC of the European Parliament and of the Council of 11 July 2007 on the exercise of certain rights of shareholders in listed companies, as worded according to Directive (EU) 2017/828 of the European Parliament and of the Council. FFFS 2019:15 Published 25 June 2019

FFFS 2019:15 2

These regulations shall enter into force on 25 June 2019 and apply for the first time to the annual report submitted in 2020. ERIK THEDÉEN Agneta Blomquist

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