STOCKHOLM (Reuters) - Sweden’s Financial Supervisory Authority (FSA) has withdrawn the operating licence of corporate finance firm Remium Nordic AB after breaches in internal controls and risk management, the watchdog said on Wednesday.
Remium was warned and fined 3.5 million Swedish crowns ($415,000) by the FSA last year over similar issues.
The FSA said that flaws in risk management and internal controls meant that Remium “had not made the impairment tests required and consequently had not made sufficient writedowns in its credit portfolio”.
The authority also said there were concerns about Remium’s ownership structure.
“The ownership situation and the company’s ties with other companies are hard to clarify both for the FSA and for external parties and furthermore hamper the FSA’s oversight,” the FSA said in a statement.
Remium, which provides a range of services including equity research, corporate finance and asset management focused on small and medium-sized companies, said it intended to appeal against the decision.
“Remium does not share the opinion of the FSA that the company has had flaws in either internal management or control,” the company said in a statement.
It said that the risk level in its credit portfolio was correctly reported in terms of writedowns, adding that the FSA’s decision did not affect those operations not subject to licensing.
“Remium’s operations will continue as before,” the company added.
The FSA said that Remium managed roughly 420 million crowns in deposits and had provided liquidity guarantees for about 50 corporate clients.
Sweden’s deposit guarantee scheme covers savers’ deposits up to 950,000 Swedish crowns. It was not immediately clear whether the guarantee would be triggered.
($1 = 8.4200 Swedish crowns)
Reporting by Stockholm Newsroom; Editing by Niklas Pollard and David Goodman