Sweden's financial watchdog has launched four further investigations into whether investors followed rules over investments in real estate firm Heimstaden Bostad.
Finansinspektionen, the Swedish financial supervisory authority, said on Feb. 1 that it was investigating whether Pensions Myndigheten, the Swedish pensions agency; KPA Pension, Stockholm; and two Folksam entities invested according to current rules.
The authority said its supervision includes "reviewing whether assets are invested in a prudent manner," according to a translation of a notice on its website.
The FSA already has ongoing investigation into Alecta, Stockholm's, investments in the real estate firm. "In connection with that survey, we have asked questions to several actors who have made investments in the same company," it said.
"We will now review whether the rules have been followed in connection with these investments," said Ellinor Samuelsson, adviser at the FSA, in the translation of the notice. "It is central to consumer protection. The regulations exist to secure and protect the money of policyholders and pension savers."
The book value of the 2.2 trillion Swedish kroner ($213.7 billion) pensions agency's investment in Heimstaden Bostad was 2.3 billion kroner as of Dec. 31. The invested value was 2.7 billion kroner, a spokesperson said.
The Swedish Financial Supervisory Authority informed the agency that it is investigating the agency's investment in Heimstaden Bostad. "We intend to, as before, assist in the way that the Swedish Financial Supervisory Authority needs," the spokesperson added.
Occupational pension fund KPA Pensionsförsäkring, Stockholm — part of retirement and insurance firm Folksam Group — has 300 billion kroner in assets. KPA first invested in Heimstaden Bostad in 2020. Its investment in the company was about 13 billion kroner as of June 30, according to its interim report.
A statement on the KPA website, attributed to Bjorn Nordin, group chief of staff at Folksam, said: "The Financial Supervisory Authority investigations are important for trust in the financial sector and we will now assist them in their review."
The FSA will also look at insurance companies Folksam Liv and Folksam Sak. A spokesperson for Folksam said the group's total investment in Heimstaden Bostad was about 21 billion kroner.
The FSA has already referred Alecta to Sweden's National Prosecutor's Office, which launched a preliminary investigation into suspected corruption offenses in relation to the 1.2 trillion kroner pension fund's 49 billion kroner holding in Heimstaden Bostad.
