FI comments further on Cicero and Stockpicker cases
Agneta Blomquist, head of Unit, Fund Law (enhetschef fondrätt) at the Swedish Financial Supervisory Authority (Finansinspektionen) has commented further on Friday’s warning about Cicero Fonder och Stockpicker Asset Management.
The warning and fines came after the local market regulator found signficant failings in the internal controls and risk management of the two asset management firms.
Blomquist said that the overall view of the regulator was not positive in regards to the deficiencies found, but that on a positive note “on the funds side, there haven’t been so many cases” of a similar nature, in comparison to failures identified across all areas of financial services, and for which FI holds regulatory responsibility.
That said, for investors in the funds managed by Cicero and Stockpicker “these internal failures meant an increased risk.”
“If they misallocated funds, what was it they were meant to invest in? It is not possible to quantify in kronor what investors may have missed out on, but it does mean higher risk,” she said.
FI on Friday issued warnings to Cicero and Stockpicker. It fined them over failures to implement sufficient internal controls in areas such as risk management, to the extent that investors money was even put into assets that were not allowed by certain funds’ own mandates.
Click here to read the previous article on FI’s warning.