The Swedish Pensions Agency has submitted a lawsuit to the Stockholm District Court against UBS Third Party Management Company, part of Swiss bank UBS.
It is claiming approximately USD 42m for what it alleges were investments that generated income for the owners of a fund company that UBS Third Party delegated the management of a SICAV fund with two sub-funds to.
The agency alleges that the Swiss bank delegated the management of the funds to Prognosia AB, and Prognosia then “did not act in the interest” of fund unit holders when it bought “high-risk financial products” in February 2015.
The lawsuit alleges that these investments were made to generate income for the owners of Prognosia, and that UBS Third Party was, despite the delegation, responsible for the management of the funds in relation to the Swedish Pensions Agency and the pension savers who chose the funds.
The funds previously existed on the Swedish Pensions Agency’s marketplace and the authority is filing the lawsuit on behalf of the pension savers affected.
Commenting on the announcement, Swedish Pensions Agency general counsel, Lena Aronsson, said: “We submit a lawsuit to get back money that we believe pension savers and pensioners have lost in connection with UBS Third Party's inadequate management of certain pension funds that previously existed on the Swedish Pensions Agency's fund marketplace.”
In response, a UBS spokesperson commented: “We will review the claim. To date the SPA has not presented evidence that substantiates the alleged mismanagement by Prognosia.”
Latest News
-
Danish FSA publishes new cyber security strategy
-
Finns’ understanding of pensions improving; knowledge gaps remain
-
The Netherlands’ PFZW excludes 16 companies from portfolios
-
Irish Pensions Authority publishes 2021 Annual Report and Accounts
-
Average Dutch DB pension funding ratio falls to 122%
-
Applications for Finnish partial old-age pensions almost double
Podcast: The benefits of private equity in pension fund portfolios
The outbreak of the Covid-19 pandemic, in which stock markets have seen increased volatility, combined with global low interest rates has led to alternative asset classes rising in popularity. Private equity is one of the top runners in this category, and for good reason.
In this podcast, Munich Private Equity Partners Managing Director, Christopher Bär, chats to European Pensions Editor, Natalie Tuck, about the benefits private equity investments can bring to pension fund portfolios and the best approach to take.
In this podcast, Munich Private Equity Partners Managing Director, Christopher Bär, chats to European Pensions Editor, Natalie Tuck, about the benefits private equity investments can bring to pension fund portfolios and the best approach to take.
Podcast - The power of three: Using Common Contractual Funds to improve tax outcomes for investors
Large asset owners are still investing in equities in a way where they are taxed on their income. The implication is that they get a poorer return. They need to, and can, improve this, but how?
In this podcast, AMX Head of Client and Manager Development, Aaron Overy, and AMX Product Tax Specialist, Kevin Duggan, discuss with European Pensions Editor, Natalie Tuck, about three options to help ensure good withholding tax outcomes for institutional investors.
In this podcast, AMX Head of Client and Manager Development, Aaron Overy, and AMX Product Tax Specialist, Kevin Duggan, discuss with European Pensions Editor, Natalie Tuck, about three options to help ensure good withholding tax outcomes for institutional investors.
Mitigating risk
BNP Paribas Asset Management’s head of pension solutions, Julien Halfon, discusses equity hedging with Laura Blows
© 2019 Perspective Publishing Privacy & Cookies
Recent Stories