The European Union’s revised Markets in Financial Instruments Directive (or “MiFID II” for short) came into force on 3 January 2018. Stricter rules for the distribution of financial products, and hence also of funds, are planned in order to protect investors. MiFID II aims to improve market transparency and to increase financial market efficiency and integrity. In addition, MiFID II contains rules on target market definition and on cost transparency, among other things.
The new provisions will not be applied to SEB ImmoInvest, SEB ImmoPortfolio Target Return Fund and SEB Global Property Fund, due to the fact that they are in liquidation.
The Depository for SEB ImmoInvest, SEB ImmoPortfolio Target Return Fund and SEB Global Property Fund, which are in liquidation, doesn’t issue any fund units. Equally, the funds are not being actively distributed.
The sales prospectuses for the above-mentioned retail funds provide cost transparency. The pro rata costs and fees for the funds are included in the calculations of their unit values. This means that publishing the fund unit value every day complies with the MiFID II documentation requirement.
As a result, the Depository will not report the costs above and beyond the above mentioned fund unit values.
Further, account custodians are obliged to publish the Depository Bank fees as part of their notification requirements. Here, too, the Depository will not report the fees above and beyond the above mentioned.
Please note that the Depository is not responsible for cost transparency and notification requirements in the case of any secondary market trading in fund units for the funds in liquidation that are mentioned here.