The Swedish Financial Supervisory Authority (FI) has announced it is widening its investigation into pension investments in real estate company Heimstaden Bostad.

Four further pension funds and companies are now under investigation: Folksam Liv, Folksam Sak, the Swedish Pensions Agency, and KPA Pension.

The FI announced it was investigating pension company Alecta over investments in Heimstaden Bostad in September, and has now expanded its review.

The investigations centre around whether the pension funds and companies complied with regulations on due diligence in, among other things, the Insurance Business Act.

Its supervision also includes reviewing whether assets were invested in a “prudent manner”.

The reviews will be conducted as five separate investigations, including the ongoing investigation into Alecta.

“We will now review whether the rules have been followed in connection with these investments,” commented FI adviser, Ellinor Samuelsson.

“It is central to consumer protection. The regulations exist to secure and protect the money of policyholders and pension savers.”

Commenting in response to the announcement, Folksam group chief of staff, Bjorn Nordin, said: “The Financial Supervisory Authority's investigations are important for trust in the financial sector and we will now assist the Financial Supervisory Authority in their review.”

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