SWEDEN Law and Practice Contributed by: Björn Wendleby, Rico Benavides, Per Josephson and Stellan Koch, Harvest Advokatbyrå
• the percentage of the fund’s assets that are illiquid in nature; • any amendments or new arrangements for managing the liquidity; • the fund’s risk profile and the risk manage - ment systems employed to manage those risks; • information on the main categories of assets in which the fund invests; and • the results of stress tests performed for the fund. AIFMs shall, on the SFSA’s request, provide the following documents: • a detailed list of the AIFs managed by the AIFM updated at the end of each quarter; and • the annual reports for each fund managed by The SFSA generally complies with established deadlines but retains discretion to determine when sufficient material has been submitted in a case, marking the start of the processing peri - od. As a result, actual processing times may, in practice, exceed those prescribed by laws and regulations. The SFSA does include face-to-face meetings in their supervisory activities as well as during the application process. Such meetings are also possible before an application is filed. 3.4 Operational Requirements the AIFM and marketed in the EEA. 3.3.11 Approach of the Regulator For fund companies and AIFMs authorised in Sweden, the operational requirements under the AIFMD and the UCITS Directive, respec - tively, apply, as implemented in Swedish laws and regulations. Sweden does not impose addi - tional requirements beyond these, but EU mar - ket abuse rules according to the Market Abuse
Regulation and anti-money laundering and ter - rorist financing rules apply. Both fund companies and AIFMs need to appoint a depositary for each fund under management. In Sweden, such depositaries are subject to licensing requirements. The depositary for a Swedish UCITS must have its legal seat in Swe - den or, if it is a branch established in Sweden, in another country within the EEA. The depositary for an AIF, or at least a branch of the depositary, must be domiciled in Sweden. 3.5 Fund Finance UCITS UCITS and Swedish special funds are common contractual funds and may not acquire rights or assume obligations. However, the fund manager may take up loans on behalf of the fund. AIFs Marketed to Retail Investors In Sweden, the fund finance market for AIFs is well-established and subject to regulatory over - sight. Swedish AIFs can generally access borrowing through banks and other financial institutions. Larger and more established funds, especially those managed by licensed AIFMs, tend to have better access to financing due to their compli - ance with regulatory standards and market repu - tation. Borrowing by AIFs in Sweden is primarily gov - erned by the AIFMD, as implemented in Swedish law. Restrictions depend on the fund’s invest - ment strategy and the agreements with inves - tors. For instance, leveraged funds must dis - close their borrowing levels to both investors and regulators, and there are caps on borrowing depending on the fund type.
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