The Financial Supervisory Authority of Norway has published an inspection report on Capguard Asset Management AS’s activities conducted through tied agents, finding that the firm did not ensure clients received sufficient information about the agency relationship and that several suitability statements were inadequately documented and justified. The review of customer documentation found no evidence that tied agents informed clients they were acting as agents on behalf of Capguard, as required under the Securities Trading Act. The supervisor also pointed to a lack of clear communication about the split between the agent’s services (investment advice and order reception and transmission) and the firm’s active portfolio management. In assessing suitability documentation, the supervisor reviewed files for 18 clients and found instances where recommendations were made outside clients’ risk frameworks without adequate rationale, with comments often brief or missing. Examples included a recommendation leading to a 100% equity allocation despite a risk profile indicating 60–80%, and a case where a client’s stated risk level differed from the signed suitability form. The report notes that similar weaknesses were highlighted in a 2020 inspection and concludes that Capguard did not sufficiently comply with requirements on suitability statements and internal control. Capguard stated it will strengthen controls and improve documentation quality, including closer cooperation with group compliance, and the Financial Supervisory Authority of Norway noted these measures.
Norwegian Finanstilsynet 2025-12-09
Financial Supervisory Authority of Norway flags Capguard Asset Management failures in tied-agent disclosures and suitability statement documentation
Norway's Financial Supervisory Authority inspection of Capguard Asset Management AS found deficiencies in client communication and documentation by tied agents, failing to inform clients of their agency role and inadequately justifying suitability statements. Recommendations outside clients' risk profiles and insufficient rationale were noted, echoing 2020 issues. Capguard plans to enhance controls and documentation quality in response.