Information regarding fund mergers during the transition period
As of June 20th 2022, the Swedish Fund Selection Agency represents the Swedish Government in relation to the fund managers that previously signed fund agreements with the Swedish Pensions Agency. The fund agreements signed before June 20, 2022 (existing fund agreements) remain in effect until termination occurs in connection with the procurement of the respective fund category. Throughout the transitional period, there will coexist funds covered by existing fund agreements and funds covered by newly procured fund agreements.
The existing terms and conditions of the current fund agreements and certain older regulations in i.a. the Social Insurance Code and the Premium Pension Ordinance (2018:1302) will continue to apply until the fund agreement expires, with the changes and limitations that follow from the new legislation and the new assignment of FTN.
Since June 20, 2022, when a fund agreement expires, the premium pension monetary funds shall be transferred following the provisions outlined in Chapter 64, Section 27a-b of the Social Insurance Code. Pursuant to Chapter 64, Section 27a of the Social Insurance Code, the funds shall primarily be transferred based on the saver's new choice or alternatively to a fund that is equivalent in essential respects to the previously chosen fund.
However, transfers to an equivalent fund can only occur based on criteria and conditions established within the framework of each individual procurement. In the absence of an equivalent fund and an established distribution scheme enabling the transfer of assets to a specific fund, such as in a category where procurement has not yet occurred, the assets will be transferred to either AP7 Såfa or the saver's new choice.
One relevant scenario is in the case of a fund merger through absorption. As the transferring fund dissolves upon completion of the merger, the fund agreement for the transferring fund will also terminate at the latest by that time. Consequently, the premium pension monetary funds in the transferring fund will generally be invested in AP7 Såfa.
If the acquiring fund is covered by a fund agreement, FTN ensures that post-merger, the fund aligns with the fund agreement's conditions for continued coverage. This includes ensuring that the investment policy, risk level, and objectives do not change due to the merger or that the fund agreement for the fund in other aspects remains unaffected.
Further information is available here:
