The Danish Financial Supervisory Authority has published the results of a thematic inspection of how investment fund managers’ compliance functions review and control relevant risk areas, finding that compliance in several cases did not give sufficient attention to manager-specific risks or was not allocated adequate resources. The review, conducted as part of a joint European supervisory activity and covering one alternative investment fund manager and two investment management companies, identified shortcomings in compliance controls in manager-specific areas such as valuation and liquidity management. Weaknesses were most pronounced where the manager was part of a group, with manager-specific risks deprioritised in favour of group-wide topics that may not be central to a fund manager’s risk profile; no material observations were made regarding internal audit. Inspection reports were published for Danske Invest Management A/S, Fokus Fund Management A/S and Nykredit Portefølje Administration A/S.
Danish Finanstilsynet 2025-10-27
Danish Financial Supervisory Authority flags gaps in fund managers’ compliance oversight of manager-specific risks
The Danish Financial Supervisory Authority's inspection of investment fund managers' compliance functions revealed insufficient focus on manager-specific risks and resource allocation. Part of a European initiative, the review noted compliance control weaknesses in valuation and liquidity management, especially for managers within a group. Reports were published for Danske Invest Management A/S, Fokus Fund Management A/S, and Nykredit Portefølje Administration A/S.