SWEDEN Law and Practice Contributed by: Björn Wendleby, Rico Benavides, Per Josephson and Stellan Koch, Harvest Advokatbyrå
UCITS funds (FFFS 2013:9), relevant parts of which therefore apply. Each Swedish UCITS shall maintain a suitable diversification of investments, taking into con - sideration the spreading of risk associated with the fund’s investment focus pursuant to the fund rules. Assets of a Swedish UCITS may, subject to the limitations stipulated in the UCITS Directive and regulations issued by the SFSA, be invested in liquid financial assets, which consist of trans - ferable securities, money market instruments, derivative instruments and units in collective investment undertakings. The fund may also include liquid assets necessary for the manage - ment of the fund. Assets may also be invested in deposits with Swedish credit institutions and foreign credit institutions having their registered offices within the EEA, and with other foreign credit institutions if they are subject to prudential rules equivalent to those laid down by local law. The same rules apply to special funds, but the SFSA can authorise special funds to deviate from these investment restrictions if the principle of risk diversification is considered to be upheld. The kind of deviations that the SFSA will approve is decided on a case-by-case basis. 3.3.2 Requirements for Non-Local Service Providers Non-local service providers are generally not subject to any local regulation or registration requirements, However, when a Swedish man - ager outsources portfolio or risk management, the service providers must be authorised or registered in their home country. Additionally, any service provider domiciled outside the EU must appoint a domestic authorised agent to
whom notifications and service of process can be directed by the relevant Swedish authority. An outsourcing partner who provides services falling under MiFID will be subject to a licence requirement under the SFSA regulations. The depositary for a retail fund – or at least a branch of the depositary – must be domiciled in Sweden. 3.3.3 Local Regulatory Requirements for Non- Local Managers Non-local managers of retail funds in Swe - den are obliged to follow the same regulatory Setting up a retail fund in Sweden, either as a regular UCITS or a special fund, requires approv - al of the fund rules by the regulator. The SFSA shall make its decision within 60 days from the day that a complete application was filed. Nor - mally, the regulator will use all 60 days. 3.3.5 Rules Concerning Pre-Marketing of Retail Funds Pre-marketing of retail funds in Sweden is not regulated. 3.3.6 Rules Concerning Marketing of Retail Funds The regulatory frameworks that apply to the mar - keting of public funds in Sweden are: • the Swedish Marketing Practices Act; • the Swedish UCITS Act; • AIFMA; and • the Guidelines for Marketing and Informa - tion by Fund Management Companies of the Swedish Investment Fund Association. requirements as local managers. 3.3.4 Regulatory Approval Process
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