CFCL General information – Sweden
Reference
CFCL eligible fund types
Register market
The following types of investment funds exist in Sweden:
Open-ended investment funds
- Open-ended Swedish mutual funds qualifying as UCITS funds under Directive 2014/91/EU, governed by the Swedish UCITS Act (2004:46, as amended) (the “UCITS Act”);
- Open-ended non-UCITS mutual funds governed by chapter 12 of the Swedish Act on Alternative Investment Fund Managers (2013:561, as amended) (the “AIFM Act”) also called Special Funds.
Closed-ended investment funds
- Closed-ended mutual funds implemented as Special Funds and governed by chapter 12 of the Swedish AIFM Act;
- Closed-ended investment funds structured as limited partnership companies, which may fall under the definition of Alternative Investment Fund (AIF) within the meaning of AIFM Act. Limited partnership companies are formed on the basis of an agreement between the partners and do not issue shares or other securities, which represent holding in the company.
Swedish law does not restrict the investment in Swedish limited partnership companies by CFCL on behalf of its clients (restrictions may however be foreseen in the limited partnership agreement and therefore the eligibility should be assessed on a case by case basis) provided that none of CFCL clients is a pension trust incorporated by an employer in accordance with Section 9 of the Swedish Act on Securing Pension Undertakings or an employee trust incorporated by an employer in accordance with Section 27 of the aforementioned act). The restriction will not apply solely due to a pension trust being a client of a CFCL client.
CSD link
The CSD link only exists for ETFs in the Swedish market.
Please refer to the Market Link Guide – Sweden for more information about funds available via the CSD link.
Exchange Traded Funds (ETFs)
Exchange-Traded Funds (ETFs) are permitted and can be traded within the Swedish market.
Listed ETFs have the same settlement process as listed equities in CFCL.
Custody chain and depository
Sweden is a non-T2S market
Type of link | Indirect |
CSD (as CBF’s and CBL’s depository) | Custodian (as CBL’s depository) | CBL (as CFCL’s depository) | |
Name | Euroclear Sweden AB | Skandinaviska Enskilda Banken (SEB), Stockholm | Clearstream Banking S.A. |
FATCA GIIN | 6XWELL.00000.LE.752 | 6BRL9A.00000.LE.752 | N1V1GJ.00000.LE.442 |
LEI | 5493006WLDSUHWHCT321 | F3JS33DEI6XQ4ZBPTN86 | 549300OL514RA0SXJJ44 |
Country of incorporation | Sweden | Sweden | Luxembourg |
Account type | Omnibus | Omnibus | Segregated |
Legal Account name/holder | ETFs (AM system): Individually segregated account of SEB on behalf of Clearstream Banking S.A. | Clearstream Fund Centre S.A. | Clearstream Fund Centre S.A. |
Depository
Depository | CSD/Local custodian/Agent |
CBL | SKANDINAVISKA ENSKILDA BANKEN, Depository Code: 27 |
Operational arrangements
This section describes the operational arrangements of the Swedish market:
For CFCL clients (link to Euroclear Sweden AB) | Register market | Remarks | |
Settlement in T2S | No | N/A | |
Settlement free of payment | Yes | Yes | |
Settlement against payment | Yes | Yes | Eligible settlement currency: Swedish Krona (SEK). Securities quoted and registered in EUR settle in EUR. |
Settlement against payment in central bank money | No | N/A | CFCL holds a cash account at the custodian. Against payment settlement takes place on the cash account of SEB at the Swedish central bank for SEK and at Euroclear Sweden’s TARGET2 account with the Central Bank of Finland for EUR. |
Short selling of entitlement | No | N/A | Short selling of income or corporate actions proceeds is not authorised for settlement in CFCL. Please refer to CFCL Client Handbook. |
Settlement penalty fees | Yes | N/A | |
Partial settlement | Yes | N/A | |
Recycling | Yes | N/A | |
Settlement with Euroclear | Yes | N/A | |
Hold and Release | No | N/A | Postponed until further notice. |
Allegements | Yes | N/A | |
Transaction Linking | No | N/A | |
Bilateral Cancellation | Yes | N/A | |
Registered securities | Yes | N/A | Book-entry securities owned by Clearstream (as foreign investor). In Euroclear Sweden, equities (ETFs) are registered in the name of Skandinaviska Enskilda Banken as nominee. |
Transaction Management | No | N/A | |
Proxy voting | Yes | N/A | |
Liquidity Hub Connect | No | N/A | |
Sale and purchase of rights | Yes | N/A | |
Repo services | No | N/A | |
Market restrictions | Yes | N/A | |
FTT | No | N/A | |
Daily reconciliation | Yes | N/A | |
Link eligible for use in Eurosystem credit operations | No | N/A | |
Settlement Finality | Settlement in Euroclear Sweden is simultaneous, final, and irrevocable. | ||
Legal arrangements
The below section is valid on the date of the legal opinions that were issued and might be subject to change.
The information is provided for guidance only and should not be considered in isolation or as constituting a complete or definitive legal advice on any specific matter.
As CBL is our sub-custodian, please refer to the CBL General information - Sweden for the complete information about Legal arrangements.
Cash correspondent details
Currency: | Swedish Krone (NOK) |
CCB name: | Skandinaviska Enskilda Banken, Stockholm (SEB) |
CBL account: | SE02 5000 0000 0520 1853 3320 |
Swift address: | ESSESESS |