Fines hit faulty bonus programmes at Swedish asset managers
The Swedish Financial Supervisory Authority (Finansinspektionen) has levied fines on four firms because of failures in their remuneration structures, particularly around bonus payments.
East Capital, East Capital Asset Management, Garantum Fondkommisson and Aktie Ansvar were hit by the regulator after it found failures related to analysis of risks linked to bonus programmes, and poor handling of remuneration in respect of applicable rules
“This is the first time that FI has stepped in since its investigation into the bonus systems of financial firms undertaken in the spring,” the Authority said.
East Capital must pay a fine of SEK2.3m, East Capital Asset Management must pay SEK1.5m, Garantum Fondkommission must pay SEK1.1m, and Aktie Ansvar SEK0.4m.
There are a number of ongoing investigations into firms deemed to be in breach of the rules. So far four of these cases have led to sanctions, while a number have been abandoned after the Authority decided that the breaches were not sufficiently serious. The ongoing investigations are likely to be completed by the autumn.