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Pension providers charge hidden fee from savers

Through an ingenious approach Monyx manage to circumvent Pensionsmyndighetens rules and in this way enriched their owners, rather than benefited the pensioners.

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Pension providers charge hidden fee from savers

Through an ingenious approach Monyx manage to circumvent Pensionsmyndighetens rules and in this way enriched their owners, rather than benefited the pensioners.

this is The view of Patrick Siegbahn, who revealed the scandals of pension companies Vast and as solidar year or two ago. He has through his site Småspararguiden continued to examine what he believes is the unethical approach.

with as solidar, which made that he was aware of Monyx.

They started up the business about the same time as Vast and as solidar and have similar business models based on the telesales, say Siegbahn.

– There are also links between the companies – they have entered into various collaborations during the course of the journey, " he adds.

registered in Luxembourg and is therefore not under the same supervision as a charity fund.

at the same time, the company has allowed its pension funds to invest depositors ' money in the company's own fund, Monyx Active Interest.

When the funds buy units in other funds are called the model for the fund-in-fund, which means double the fees for the saver. Pensionsmyndighetens rules, however, say that the total charge in the fund-of-funds must be accounted for and will then also be subject to the authority's rebate scheme, which strongly presses the charges.

the loopholes and that is what Monyx has made use of.

as long As none of the funds that invest in räntefonden do it with more than ten percent of its assets, it will not count as a fund-of-fund. Thus, the total levy is reported to the pension Authority.

It is not enough to be able to ”churn” the savers ' money but Monyx has introduced a performance-based fee for its bond fund. It means that if the fund runs really good, keeps Monyx 20 percent of the profits above a certain given level.

a so-called jämförelseränta – jackets fund jämförelseräntan, so get Monyx part of the profits.

despite the fact that räntefonden invests in loans to companies, which involves risks, the fund has chosen to have a risk-free interest rate jämförelseränta. It is currently negative.

This means that so long as the companies in which the fund lent to be able to pay its loans, so the fund will receive its performance fee.

paid more to increase the risk for savers – but to actually make a return that can justify the prestationsavgiften.

Patrick Siegbahn stresses that Monyx has not violated any regulations.

" They have placed the funds in Luxembourg and has followed the regulatory framework there. But they have at various points snuddat just at the limit of what you can do, " he says.

Link to the graphics

– It is one of the areas that are not regulated. It is not written in the rules.

– the Swedish financial supervisory authority has written a report about the problems with the prestationsavgifter and mention where the importance of the benchmark must be relevant, respond Siegbahn.

Himself, he says, that ”a trained eye” is easy to see that Monyx has introduced a system of charges that savers, the shareholders, will hardly notice.

– It is visible that they have taken the necessary steps to find out the charges that the shareholders had no chance to expect or take height of. This happens behind the scenes, " says Siegbahn.

" Yeah, I would definitely say that it is.

In the wake of past scandals have the Authority developed a new agreement for the management companies that want to be in PPM. The companies received during november and december of last year to apply for participation

the authority the importance of companies operates in accordance with ”good practice”. These include, inter alia, that the use of hidden fees.

Erik Fransson, the head of the Pensionsmyndighetens fondtorgsavdelning, writes in an email to DN that it is working ”continuously to further develop the agreement”. He confirms, however, that Monyx approach means that the fee for räntefonden not need to be reported to the authority.

Monyx has applied to be included in the new agreement. This type Fransson to Monyx will be scrutinised in the same way as all the others who have applied. The authority will examine ”potential conflicts of interest carefully.”

– Investments in own funds can be a conflict of interest and if the investments are made so need to fund companies show us that investments are made to benefit the savers and not the fund company. If not, then will not the fund to be approved. adds Fransson.

questions to Monyx. the the Company refers to the information on the website. The text can be interpreted as Monyx, the face of the new PPM-the agreement, decided to no longer invest pensionsspararnas money in räntefonden. The company says that they ”currently have no investments in its own funds.”

If they are using a risk-free interest rate as comparison write the company further to the fund's lack of ”relevant benchmark index.” On the selected index in the calculation of the prestationsavgiften ”is considered the industry standard for funds with similar investment strategy.”

Read more: Suspect in pensionshärva gripen

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