SWEDEN – Sweden’s Premium Pension Authority (PPM) is launching an internal investigation following some 70 complaints of delayed trading during May’s market turbulence.
According to PPM legal expert Johan Schütt, “We are now investigating each separate case ourselves, and after that the Office of the Chancellor of Justice will decide whether PPM will pay compensation.”
PPM is due to deliver the results of its investigation report to the Chancellor by mid-July. A decision will then be taken whether to investigate further and/or whether PPM is liable to pay compensation to the complainants.
“If he thinks our investigation is enough, the Chancellor can decide on that basis,” Schütt told IPE. “But there is a possibility to order a further investigation if he thinks anything is unclear”.
According to PPM, some complainants have specified the exact amount they want from PPM while others have demanded compensation to match their losses.
PPM chief legal advisor Håkan Nyholm is heading the internal investigation with the assistance of other PPM legal experts.
Earlier this month, IPE reported that PPM could face an investigation by Sweden’s Office of the Chancellor of Justice following initial complaints of delayed trading.
According to the complaints, the delays prevented pension savers moving their funds, while the funds’ value collapsed in line with the fall in markets.
In May, IPE reported that PPM would extend its trade processing time amid a surge in the number of funds being switched by investors. The system of two days was due to change to three days under new requirements from the Swedish National Debt Office.
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