Swedish Pensions Agency files lawsuit against UBS Third Party

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.”

    Share Story:

Recent Stories

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.

How the US’s robust securities law can benefit European investors
Over recent years several financial scandals have shocked investors, such as the Danske Bank money laundering case. When a scandal like this occurs, investor returns suffer, which is why many seek redress. Many European investors seek to recover assets lost as a result of securities fraud through U.S. courts, with their robust securities laws.

In this podcast, Jeremy Lieberman, Managing Partner at Pomerantz LLP, talks to European Pensions Editor, Natalie Tuck, about how European investors can use U.S. courts to recover assets lost to securities fraud and the challenges facing investors seeking compensation.
Mitigating risk
BNP Paribas Asset Management’s head of pension solutions, Julien Halfon, discusses equity hedging with Laura Blows

Europe’s pensions challenges
Francesca Fabrizi meets Matti Leppälä, Secretary General and CEO of PensionsEurope, to discuss the key aims and objectives of the association today.