Sweden’s financial supervisory authority, Finansinspektionen, will investigate risk management systems at Alecta following its failed bets in US niche banks.
(Bloomberg) — Sweden’s financial supervisory authority, Finansinspektionen, will investigate risk management systems at Alecta following its failed bets in US niche banks.
The probe’s starting point will be Alecta’s investments in Silicon Valley Bank, First Republic Bank and Signature Bank, which resulted in losses of almost $2 billion for Sweden’s largest pension fund. The FSA decided to initiate the investigation after meetings with Alecta, where the occupational pension provider explained the process behind its investments.
“We will examine whether Alecta has had control over its risks in accordance with the rules or not,” the FSA’s Head of Risk Supervision, Ellinor Samuelsson, said in a statement, adding that pension firms following these regulations is a central part of protecting consumers.
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