AP1, Stockholm, said former CEO Johan Magnusson was dismissed because he participated in an initial public offering of real estate company John Mattson Fastighetsforetagen AB, while the fund was acting as the anchor investor in the same IPO.
Following the allocation of shares and completion of the IPO, Mr. Magnusson registered the transaction in the established systems for reporting holdings as established by the fund, AP1 said Wednesday in a news release.
But regulations of the 352 billion Swedish kronor ($35.8 billion) fund prohibit an employee from trading financial instruments that AP1 is currently trading in or can shortly be expected to trade.
Teresa Isele was appointed acting CEO on Monday. The fund is searching for a replacement.