The Financial Supervisory Authority of Norway has published its inspection report on the Pension Fund for the Health Enterprises in the Capital Area following a 25 September 2025 supervisory review, setting out supervisory remarks on governance and control, risk management, capital planning and the insurance framework. It expects the board to tighten suitability assessments, ensure the internal audit function is sufficiently independent from the sponsoring employer, update the fund's bylaws to clarify who appoints a nomination committee and to reflect annual capital contributions, and strengthen the own risk assessment (ORA) and broader risk governance framework. The authority took note of some steps already made, including revisions to the risk strategy so risk tolerance limits are calculated without the transitional measure, the addition of a portfolio-wide active risk limit, and a decision to include liquidity stress tests in regular board reporting and the next ORA. Even so, it said risk management should rely consistently on the solvency capital ratio without transitional measures, the risk appetite framework should give the board a fuller view of risks such as liquidity, sustainability and active management risk, and the ORA should place more weight on differences between the fund's actual risk profile and the assumptions used in the solvency capital requirement, supported by stronger stress tests and scenario analysis against the capital and contingency plan. On the insurance side, the authority said the strategy and limits should be clearer, principles for setting the interest guarantee premium should be anchored in the strategy, and future actuarial reports should cover solvency methods, models and key assumptions more fully. The board said it will carry out a new contingency exercise focused on action rules and decision options in 2026. The authority will also follow up separately its request for a new tariff notification on the interest guarantee premium, and asked the fund to send the minutes of the board meeting that considers the report and to provide the report to its auditor.
Norwegian Finanstilsynet2026-05-13
Financial Supervisory Authority of Norway flags governance and risk management shortcomings at the pension fund for health enterprises in the capital area
The Financial Supervisory Authority of Norway published an inspection report on the Pension Fund for the Health Enterprises in the Capital Area, issuing supervisory remarks on governance, risk management, capital planning and the insurance framework. It expects the board to tighten suitability assessments, reinforce internal audit independence, clarify bylaws on nomination and capital contributions, and strengthen the own risk assessment, risk appetite, stress testing, insurance strategy, limits and interest guarantee premium principles. The authority will follow up on a new tariff notification for the interest guarantee premium and has requested board minutes and auditor notification.