Sweden's Financial Supervisory Authority has begun an in-depth review of whether fund management companies and alternative investment fund managers comply with rules governing their risk management functions and whether those functions are effective and fit for purpose. The review forms part of a common supervisory action coordinated by the European Securities and Markets Authority (ESMA). The assessment will examine whether risk management functions have adequate resources, expertise, powers and independence. It will also scrutinize how they identify, measure, manage and monitor risks, alongside their reporting to and cooperation with senior management and boards. These functions are responsible for keeping risks within established limits and consistent with fund investors' interests.
Sweden's Financial Supervisory Authority launches review of fund managers' risk management functions
Sweden's Financial Supervisory Authority has begun assessing fund managers' compliance with risk management rules and the effectiveness of their risk management functions as part of a common supervisory action coordinated by the European Securities and Markets Authority. The review covers resources, expertise, powers and independence, as well as risk monitoring and interaction with senior management and boards.