SWEDEN: FI Evaluation on Liquidity Risk Management

Thursday January 7 2021

On 7^th January 2020, Finansinspektionen (FI) announced that it has evaluated how mutual funds in Sweden follow the rules that exist for managing liquidity risks.

The supervisory activity carried out during the year has been divided into two stages  aimed at ensuring that mutual funds comply with the rules that exist for managing liquidity risks.

In a first stage, FI analysed all Swedish managers of mutual funds and special funds through a survey. In a second stage, FI carried out an in-depth analysis of nine managers of mutual funds that invest in corporate bonds or shares in smaller companies.

Since some of the analysis may be of importance to the industry as a whole, FI wishes to briefly present the most important conclusions. FI will also publish a supervisory report on the subject in 2021.

FI also wants to emphasize the importance of all companies applying the guidelines for liquidity stress tests that came into force on 30 September 2020. In 2021, FI may follow up the companies’ application of the guidelines.

FI may also follow up on individual companies through surveys in order to examine individual companies’ management of liquidity risks.

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