FI hits Cicero and Stockpicker
The Swedish Financial Supervisory Authority (Finansinspektionen) has issued warnings and fined Cicero Fonder and Stockpicker Asset Management for regulatory failures.
Both companies were identified as failing to meet management and control standards, and apart from being issued a warning by the regulator must pay fines of Sek3.5m (€0.4m) and Sek250,000 (€27,000) respectively, FI said.
Cicero failed to apply proper functions in areas such as internal auditing and risk management. Several times it invested its funds’ assets incorrectly. One failed to spread risk properly, while the assets of another were invested in a way that the fund’s own mandate did not allow.
FI said it considered the failures of such a serious nature that Cicero was given a warning and fined. The company manages six mutual funds and five specialist funds. Assets under management of Sek2.7bn (€300m) were reported as of 31 December 2010.
Stockpicker several times made investments resulting in failure to spread risk in a way that the law requires, and invested in unquoted companies contrary to specific mandates. The control function failures meant these and other investments were not spotted. Stockpicker had assets under management of Sek206m (€22.8m) as of 31 December 2010.