Stockholm (NordSIP) – Following the Swedish government’s proposal to reduce the number of AP funds and tighten the competence requirements for the boards the country’s parliament (Riksdagen) has now approved the government’s legislative proposal.
As per the proposal, AP6 will be incorporated into AP2. The operations and assets of AP1 are also being transferred to AP3 and AP4. The idea of the legislation is that fewer funds reduce costs and its aim is to create more appropriate and cost-effective management, which should benefit the pension system.
“With fewer AP funds, it will be easier to follow up and evaluate their operations. That is an important reason for this reform. In addition, management costs will be lower, which means that more will be left for future pensioners. In the long term, it will amount to billions,” says (Translated) Sweden’s Minister of Financial Markets, Niklas Wykman.
The new law also requires profiles for board recruitment to the AP funds to be tightened. It is now made clear that the board as a whole must have a high level of competence in asset management and sufficient competence in areas such as financial economics, sustainability, and public administration.
The legal amendments will enter into force on January 1, 2026.
Stockholm (NordSIP) – Following the Swedish government’s proposal to reduce the number of AP funds and tighten the competence requirements for the boards the country’s parliament (Riksdagen) has now approved the government’s legislative proposal.
As per the proposal, AP6 will be incorporated into AP2. The operations and assets of AP1 are also being transferred to AP3 and AP4. The idea of the legislation is that fewer funds reduce costs and its aim is to create more appropriate and cost-effective management, which should benefit the pension system.
“With fewer AP funds, it will be easier to follow up and evaluate their operations. That is an important reason for this reform. In addition, management costs will be lower, which means that more will be left for future pensioners. In the long term, it will amount to billions,” says (Translated) Sweden’s Minister of Financial Markets, Niklas Wykman.
The new law also requires profiles for board recruitment to the AP funds to be tightened. It is now made clear that the board as a whole must have a high level of competence in asset management and sufficient competence in areas such as financial economics, sustainability, and public administration.
The legal amendments will enter into force on January 1, 2026.
