Swedish roundup: Peter Norman, PPM system, Norrporten
SWEDEN – Peter Norman, Sweden's financial markets minister, has voiced scepticism about the possibility of limiting the number of funds within the national defined contribution system, the PPM.
The minister said he preferred the current system – where any pensions provider is able to add it funds to the premium pension platform – to having the Swedish Pensions Authority select providers.
Speaking at a conference arranged by Swedish-language pensions news site Pensionsnyheterna, Norman questioned the Pensions Authority's ability to act as gatekeeper of the PPM.
He acknowledged that the current system had put "a lot of pressure and demands on customers", but he warned there would always be the risk that a well-performing provider would be excluded.
The minister was also critical of external advisers for PPM customers and hinted that their businesses should "not be allowed to operate" within the system.
In other news, AP2, one of Sweden's buffer funds, welcomed an investigation into Norrporten, a real estate company it owns jointly with AP6.
The inquiry, led by a team of investigative journalists, follows two independent investigations by accountants and lawyers launched on behalf of Norrporten's board earlier this year, which turned up no irregularities from a legal perspective.
AP2 said it welcomed the journalists' inquiry, which was broadcast last week, while conceding that Norrporten had shown a lack of judgment on travel expenses for senior managers and costs relating to staff conferences.
The buffer fund also pointed out that Norrporten was now reviewing its procedures and had introduced a compliance position.
Norrporten has returned more than 280% for AP2 since it was launched in 2001.