SWEDEN - Sven-Erik Österberg, the Swedish Minister for Local Government and Financial Markets, has warned that he may introduce a new law to compel private equity and venture capital companies to disclose information about their borrowing.
“When the Swedish Financial Supervisory Authority says that there is reason for concern, I am ready to give them a clearer mandate that gives them authority to inspect the venture capital companies' activity”, Österberg told Swedish on-line news service ‘Dagens Nyheter’.
Increased scrutiny could mean that the venture capital companies will be compelled to provide information that they currently withhold, he said.
“I have given my officials instructions to investigate if the Swedish Financial Supervisory Authority needs more power. We will wait and see which measure they suggest, but I do not rule out a new law in the longer term”, he said.
IPE revealed on July 11 that Erik Saers, deputy director of financial market monitoring at the Swedish Financial Supervisory Authority, is pressing for greater transparency from private equity and venture capital companies, since Swedish pension fund assets are invested in them.