Regulations governing investment funds
In force from: 23 July 2008
Summary
Explicit requirements have been established regarding which assets companies conducting fund activities are allowed to invest in. Funds that currently use derivative instruments for increasing the efficiency of management will also have the opportunity to do so in order to boost their performance.
In these new regulations, FI also adapts the organisational requirements for companies to coincide with those applying to securities firms. This means, for example, that companies in the fund sector should also have a compliance function, which both provides information on new regulations and monitors compliance.
The EU Directive on eligible assets is imposed through these regulations.
These regulations replace FFFS 2004:2 on investment funds.
Amendments
FI is adapting these regulations to the UCITS IV Directive and its implementing Directive. New rules and amendments have also been introduced that are independent of these Directives.
The amendments refer to, for example, requirements on the organisation, conflicts of interest, rules of conduct, valuation of OTC derivatives and risk management. New rules governing the use of derivatives and feeder/master funds are implemented. The amendments also regulate cross-border operations and unit classes, the issuance of units prior to transfer of payment to the fund and trade in units on a secondary market. In addition, regulations are introduced governing the content of certain informational documents and the manner in which certain fund information is provided.
The amendments enter into force on 1 August 2011. There are a few limited transition regulations, for example regarding the content of a half-yearly report.
