SWEDEN Trends and Developments Contributed by: Björn Wendleby, Rico Benavides, Per Josephson and Stellan Koch, Harvest Advokatbyrå AB
Consolidation trends It is not only the smaller fund company segment that is seeing consolidation trends. Throughout 2024, two new giants took form. In September 2024, Öhman Fonder effectively executed the absorption of Lannebo Fonder, which, going for - ward, will be operating under the brand Lannebo Kapitalförvaltning, creating the largest independ - ent fund company in the Nordics with AUM north of SEK250 billion. Just weeks later, in October 2024, Carnegie Fonder’s absorption of Didner & Gerde Fonder was approved by the authorities, leading to AUM of approximately SEK185 billion for Carnegie Fonder. To further accelerate the Carnegie “merger train”, albeit not consolidating the fund operations, shortly after October 2024 it was announced that Altor Fund III and the minority sharehold - ers in Carnegie Holding (the parent company of Carnegie Fonder) had entered into an agreement to sell Carnegie Holding to the Norwegian group DNB Bank ASA, subject to regulatory approvals expected to take place in H1 2025. It is safe to say 2024 has seen an uptick in consolidation trends. The outcome of the FTN procurements and continued price competition may, as mentioned previously, continue to have an impact with respect to whether further con - solidations are going to be seen in the sector in 2025. Further, regulatory and operational costs associated with the implementation of major new and complex regulations, such as the Digital Operational Resilience Act (DORA), may mean that fund companies remain on the lookout for cost-effective synergy opportunities throughout 2025.
The Ongoing Committee Review of Swedish Fund Legislation Introduction and summary In December 2023, the Swedish government decided upon a committee directive, appoint - ing a designated investigator that shall examine – and propose the necessary legislative amend - ments to adapt – Swedish law in accordance with the revisions to the Alternative Investment Fund Managers Directive (AIFMD) and the Undertak - ings for Collective Investment in Transferable Securities Directive (the “UCITS Directive”). The investigator will also assess and propose measures to enhance the competitiveness of the Swedish fund market, including regulations per - taining to association-based funds with variable share capital. Additionally, the investigator will review the rules regarding redemption frequency and analyse how the resilience of Swedish funds and investor protection can be strengthened. The overarch - ing goal is to modernise fund legislation, render the Swedish fund market more competitive and resilient, and ensure alignment with EU law. Specifically, the investigator shall: • assess the legislative amendments required to align Swedish law with the changes made to the AIFMD and the UCITS Directive; • analyse and provide recommendations on the appropriate regulatory framework for associa - tion-based funds with variable share capital; • analyse and determine the necessary chang - es to enable securities funds to be open for redemptions twice per month; and • provide the requisite legislative proposals. The findings of the investigation shall be submit - ted no later than 30 April 2025.
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