Finansinspektionen (FI), Sweden's financial supervisory authority, has issued a record penalty against pension company Alecta for what it calls serious deficiencies in risk management related to a major real estate investment. According to the authority's decision, Alecta will receive a warning and pay a 50 million kronor sanction fee for its investment in Heimstaden Bostad, a real estate company controlled by Norwegian real estate magnate Ivar Tollefsen. This represents the highest penalty a Swedish pension company can receive, with the next step being license revocation.
The decision was made during FI's board meeting on Monday following two and a half years of investigation. Alecta invested 50 billion kronor in Heimstaden Bostad, an investment that the company's current CEO Peder Hasslev has acknowledged should never have been made as it disadvantages pension savers. ' The authority found serious deficiencies in the company's governance and control systems, stating that Alecta lacked sufficient ability to manage risks associated with its investments.
failed in its risk control and did not invest the assets in the way that best benefits current and future pensioners
should never have been made as it disadvantages pension savers