Calls for better protection

The number of funds in Sweden’s pension system will be reduced by between 200 and 400, if a Swedish Pensions Agency (Pensionsmyndigheten) proposal is approved by the parliamentary pension group, reports Dagens Nyheter.

Concerns over the recent scandals with Falcon Funds and Allra have led the Pensions Agency to propose that a company must be able to prove that it has had assets of at least 100 million kronor under management for three years before it will be accepted on its platform. During the second half of last year just four of 31 new funds met such a requirement.

Another proposal is that a fund must be able to show it has been trading on other regulated markets during a set number of years, while a third is that a cap will be set on the level of assets each fund has in the pension system.

The parliamentary group is expected to make a decision by the summer.