Swedish roundup: Solvency II, Peter Norman, Collectum, AP1
SWEDEN - The financial regulator (Finansinspektionen) has argued that Solvency II proposals must be further revised before they can be presented to parliament.
The regulator said additional measures had to be taken to facilitate implementation and interpretation of the new rules.
In particular, it argued that more needed to be done on issues such as additional capital provisions at group level, permission to change internal models and corporate information on directors to the regulator.
However, Finansinspektionen was more positive about other aspects of the directive and agreed that Sweden's current insurance business act should still be valid after making the necessary adjustments the new directive requires.
It said it was also positive about new legislation with separate and specific rules for occupational pension schemes that would not fall under the scope of Solvency II, but it reiterated that more work was needed there as well.
In other news, a study published by pensions administrator Collectum shows that public pensions now constitute 45% of Swedes' average income.
Most Swedes have occupational pensions in addition to the state pension.
The average public pension in 2011 was just over SEK11,000 (€1,250) per month, or 45% of the average pension income of SEK24,600.
A privately employed white-collar worker of 45 years of age, with a monthly salary of SEK35,000 can expect SEK5,700 in occupational pension, in addition to the public pension.
Separately, the pensions administrator has written a letter to Peter Norman, the minister for financial markets, urging him to force the pensions industry to come clean on fees.
Collectum says it is very difficult for individuals to get a clear picture of how fees will affect their future pensions.
It proposes a standardised fee-measurement model that includes all fees and costs that will affect the end amount received as pension, reported both in percentages and kronor.
These standardised rules would be mandatory for any party offering pension products and be reported annually.
Collectum would also like to see a standardised price-measurement in kronor, which it said would make it easier to compare different providers and products.
The proposal would be to show the cost on a pot of SEK100,000 over a 30-year period.
Norman has said he agrees with the notion that fees should be clearer for the consumer.
He said he would like to see an agreement with the industry, but did not rule out the possibility of legislation.
Lastly, AP1, one of Sweden's national buffer funds, has hired Tomas Svensson as portfolio manager for real estate, a newly established role as the fund makes a push to increase its allocation to the asset class.
Svensson joins from Storebrand's real estate division, where he was head of investments. Before then, he was head of transaction at GE Real Estate in the Nordics.
Maria Loft is set to replace Svensson. She will join Storebrand in April after 13 years at SEB, where she has been managing the real estate portfolio of SEB's life company, SEB Gamla Trygg Liv.
Tomas Krywult will replace Loft.