The former CEO of AP1, one of five funds in the Swedish national income pension system, was dismissed from his role by the fund's board because he engaged in private trades on a security for which the fund was an anchor investor during its listing on the stock market, according to further information on the issue released on 4 September.
The trade took place in the spring. Johan Magnusson, the former CEO, did not register his private trades with the fund's established system for reporting holdings until after the allocation of shares had taken place and the listing completed, the fund said in a statement.
The fund's compliance function judged that his actions conflicted with rules that ban employees from using knowledge about investments or trading in financial instruments that the fund is or shortly may be expected to trade. The rules also prohibit employees who place trading orders on behalf of the fund from simultaneously placing orders on their own behalf. Such activities are deemed not to adhere to the fund's 'values and ethics policy' and 'policy for handling conflicts of interest'.
The chairman of the board of the fund was notified about the details over the summer, and at the board meeting of 30 August it was decied to dismiss Magnusson.