Sweden's financial supervisory authority has warned Celina Fondförvaltning AB (Celina) and imposed an administrative fine of SEK 10m (€909k), in a statement earlier this week.
An investigation by Finansinspektionen (FI) of the Stockholm-based fund management company that also has authorisation to manage alternative investment funds, focused primarily on how Celina, as part of its fund operations, managed conflicts of interest in certain transactions.
Deputy director general Susanna Grufman said: "Celina has not done enough to prioritise the interests of unit holders. We consider this to be a serious matter. There is a risk that this could harm confidence in the fund market."
FI said its investigation showed that there have been major deficiencies in Celina's management of conflicts of interest. The company had not taken all reasonable measures to prevent the interests of its unit holders from being negatively impacted by conflicts of interest, and neither has it had an organisation that reduced the risk of conflicts of interest.
It continued: "Celina has not met the requirement to act exclusively in the common interest of the unit holders. In addition, when selecting investments, the company has not acted with a required high level of diligence.
"The rules that Celina violated are some of the most central rules a fund management company is obligated to follow and are fundamental for maintaining investor protection and confidence in the market."
The identified violations are serious, it further said, hence Celina is being issued a warning with an administrative fine of SEK 10m.
FI's board of directors decided on the sanction on 15 November 2022.
