SWEDEN Law and Practice Contributed by: Björn Wendleby, Rico Benavides, Per Josephson and Stellan Koch, Harvest Advokatbyrå
3.1.4 Disclosure Requirements A fund management company must provide investors with an annual report within four months of the expiry of the financial year and a half-yearly report on the first six months of the financial year within two months following the expiry of the half-year. The annual and half-yearly reports must contain all information necessary to assess the fund’s development and financial position. A fund management company shall submit a quarterly report for its operations to the SFSA at the end of every quarter. The quarterly report shall contain a profit and loss account and a bal - ance sheet with specifications, as well as infor - mation regarding the calculation of own funds and capital requirements. The quarterly report shall relate to the conditions on the last day of every calendar quarter (the report date), and the SFSA shall have received the report no later than 21 April, 21 July, 21 October or 21 January. A fund management company must also be able to, at any given time, present a list of each investment fund’s asset holdings (as stated in the Swedish UCITS Act). 3.2 Fund Investment 3.2.1 Types of Investors in Retail Funds Sweden has a long history of public distribution of investments funds, particularly through the public pension system. Swedish retail investors are therefore generally well informed. Investors are often willing to take risks, but retail funds are considered a good basis for retail investors to build on. It is not uncommon for retail investors to have a monthly automatic purchase of shares.
3.2.2 Legal Structures Used by Fund Managers
As stated in the foregoing, UCITS and special funds can only be common contractual funds. 3.2.3 Restrictions on Investors While UCITS funds must be distributed to the public, special funds can be restricted to an objectively defined group of investors as long as it is not too small, which would be considered discretionary portfolio management. The target investor group of special funds must be stated in the fund rules of the fund. Both UCITS and special funds can have different share classes, with different terms for: • dividends; • fees; • the minimum subscription amount; • the distribution of shares; • currency hedging; and/or • the currency in which the units are subscribed and redeemed. Note that share classes with a minimum sub - scription of SEK50,000 or more are not consid - ered available to the public, and UCITS must Swedish UCITS are regulated by the Swedish UCITS Act and the SFSA regulations on UCITS funds (FFFS 2013:9). Swedish special funds are technically AIFs, reg - ulated by Chapter 12 of AIFMA (SFS 2013:561) and the SFSA regulations on AIFMs (FFFS 2013:10). These provisions refer to the Swed - ish UCITS Act and the SFSA’s regulations on have at least one open share class. 3.3 Regulatory Environment 3.3.1 Regulatory Regime
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