The Bank of Lithuania has adopted a decision to levy on INVL Asset Management a fine for infringements related to the distribution of mutual funds and a warning for other deficiencies related to the provision of investment services and investment fund management activities. It should be noted that this decision is not related to the areas of pension funds or alternative investments. The Bank of Lithuania adopted the above-mentioned decisions after performing a scheduled inspection of the company.
The asset management company INVL Asset Management stresses that in providing asset management services it is guided by legislation and strives to deliver quality asset management and investment services.
“We set strict requirements for our operations, and in creating and managing investment products we first of all consider clients’ interests. After assessing the observations made, we will improve the existing process. Still, we see as paradoxical the situation where the company is fined for the refund of a part of the management fee while participating in the premium pension system administered by the Swedish Pensions Agency. We will further examine this case where the practical application and interpretation of European Union legislation in different countries diverges, seeking full legal clarity,” said Laura Križinauskienė, the CEO of INVL Asset Management.
She noted that the company’s participation in the Swedish Pensions Agency platform together with many managers of other funds worldwide was an important achievement not only for the company, but also for the Lithuanian and regional financial market, attracting a large investment flow to the region. A significant portion of that money was invested in the shares of Baltic companies.
“It’s unfortunate that by participating in a system that operates in accordance with Swedish law, we became offenders in Lithuania. The Swedish Pensions Agency has established uniform rules which comply with EU and Swedish law for the funds distributed on the platform, so we had no basis for doubting that the chosen form of partnership was allowed,” the head of the company said.
In 2018 Sweden’s supplementary pension system had 5.9 million participants, who via the platform could invest in investment instruments of varied fund managers worldwide. At the start of this year, more than 90 managers offering 782 investment funds were taking part in the system. With the introduction of additional requirements regarding funds’ size, INVL’s investment funds will no longer participate in the system as of the end of May this year.
The company will review processes related to investment and asset management services in light of the observations made during the inspection.
The company’s material event announcement is available for review here.
INVL and Šiaulių bankas merged their retail services as of 1 December 2023.
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INVL and Šiaulių bankas merged their retail services as of 1 December 2023.