When she summarizes Finanstilsynet in her own words, it is written that Odin Not he have:
(…) An appropriately defined, detailed and documented pricing process that can help ensure that funds and unit holders do not incur unnecessary costs.
And when Finanstilsynet swings on fund managers, the authority states that “a structured pricing process must be put in place, where costs are identified, quantified and evaluated against the obligation not to impose undue costs on the fund.”
The pricing process should be updated and documented regularly, so that it is possible to supervise the management company’s accounts and set fees, according to Finanstilsynet.
In the report, Odin faces a scratch when it comes to compliance with money laundering regulations, but the harshest criticism hurts the principal’s pricing.
One point is due to the fact that Odin trusts are indexed against government bonds, which funds with higher risks must necessarily overcome in good times. Thus, the information becomes misleadingly positive, according to Finanstilsynet.
One of the largest country
Odin Forvaltning is owned by the banks in Sparebank 1 Alliance – certainly the largest group of local and regional banks. In total, retail customers left less than NOK 70 billion to be managed by Odin, and market share was close to 17 percent of new retail customer subscriptions in December, according to figures from the Norwegian Mutual Fund Association.
Finanstilsynet in particular points out that Odin was too poor to provide good price information for this particular client group – unprofessional investors.
At the time of the audit, which was in April of last year, Odin had 18 mutual funds, and in the audit report, fixed income and combined funds were mentioned in particular.
Section Chief Brett Heligerdi signs the Finanstilsynet report, which states in the conclusion that “Finanstilsynet takes the serious view that the terms have not been pursued well enough,” despite the fact that Odin received a reminder of this in December 2018.
will introduce routine
Regarding the missing pricing action, Finanstilsynet stated prior to the final report that:
In order to be able to protect the best interests of unit holders, pricing procedures must include recalculation mechanisms, which must at least be implemented when cost items are lost or reduced.
In the review, Odin writes that he himself ensures that the management fee “covers the anticipated costs related to the tasks applicable to the management of the fund”, including the “administration, administration, and marketing” of the funds.
In addition, fees are determined based on market considerations. With regard to the costs that are charged in addition to the management fee, these costs are regulated in the Mutual Funds Act and the Fund’s Articles of Association.
For costs of an “extraordinary nature, the company has an in-house process before the funds are charged to them,” Odin commented. Furthermore, the trustee promises that he will ensure that “this procedure is put into his own routine.”
The report notes that Odin asserts that “unit holders receive a specific cost report at least annually, in the funds’ annual report, and transaction costs are analyzed quarterly to ensure that funds do not incur unnecessary costs.”
Odin did not respond to DN’s query on Friday night.(Conditions)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using a link that leads directly to our pages. All or part of the Content may not be copied or otherwise used with written permission or as permitted by law. For additional terms look here.
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