Finansinspektionen (FI), the Swedish financial supervisory authority, has started fresh investigations against Folksam, KPA Pension and Pensionsmyndigheten, the Swedish Pensions Agency, regarding investments in Heimstaden Bostad.

Last September the watchdog announced that it was formally launching an investigation into the country’s biggest pension fund, the SEK1.21trn (€102bn) occupational provider Alecta, regarding its investments in residential property developer Heimstaden Bostad, whose largest shareholder is Swedish listed property firm Heimstaden.

In the case of Folksam, the regulator will review whether Folksam Sak and Folksam Liv have been compliant with regulations on due diligence in, among other things, the Insurance Business Act.

As for KPA Pension, which is part of the Folksam Group, the authority’s investigation will be on the same grounds as for Folksam, it noted, in addition to reviewing the company under regulations and general advice on occupational pension companies, since KPA has been an occupational pension company since 1 January 2022.

In the part of the investigation that pertains to the time before 1 January 2022, FI’s appraisal will be based on relevant provisions in the Insurance Business Act, it said.

”The Financial Supervisory Authority’s investigations are important for trust in the financial sector and we will now assist the [FI] in their review,” said Björn Nordin, Folksam’s group chief of staff, in a statement.

According to FI – which is responsible for the supervision of the Pension Agency’s insurance operations in the premium pension system – its review will include, among other things, investigating and assessing whether the Agency is following rules that apply to investments.

“In this investigation, we will review that the Pensions Agency has followed the applicable regulations on due diligence in connection with their investments in Heimstaden Bostad,” FI stated.

Johan Andersson, spokesman for the Pensions Agency, told IPE: “The Swedish Financial Supervisory Authority has informed us that they [will] investigate our investment in Heimstaden Bostad. We intend to, as before, assist in the way that the Swedish Financial Supervisory Authority needs.”

Back in October 2021, Folksam expanded its investment in Heimstaden Bostad through a commitment of SEK10.75bn. Folksam Liv and Folksam Sak increased their investment by SEK2.75bn and KPA Pension also increased its investment by SEK8bn. The Swedish Pensions Agency invested SEK1.25bn.

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