PPM mis-sells shares for 11,000 members
SWEDEN- Faulty information supplied to Sweden’s PPM by the tax authorities and the country’s National Social Insurance Board (RVF) has led it to mis-sell shares totalling a maximum of e600,000 for more that 11,000 scheme members.
PPM automatically uses information passed on by the RFV, who relies on data from the tax authorities, to calculate members’ premium pensions entitlements. During the year, Swedish citizens are able to challenge the authorities’ income and tax assessment and, according to PPM spokeswoman Eva Lindhe, it is not uncommon to receive amended figures.
In December the tax authorities informed PPM that income figures for 50,000 Swedes had changed. It transpires that the figures supplied for almost a quarter had their income, and therefore pension entitlement, underestimated.
“The tax authorities made a mistake and sent us the wrong information about eleven thousand members. We automatically sold the shares and reduced the amount of money in each of the eleven thousand accounts,” says PPM spokeswoman Eva Lindhe.
Information supplied by the RVF makes no reference to individuals and PPM is therefore unable to inform those affected. Instead members have to scrutinise their accounts and apply for compensation if they have lost out.
Lindhe says they will receive the correct information in April when they can then act. Who will make up the shortfall if the mis-sold shares appreciate over the period is as yet undecided.