Sweden's financial watchdog said it has fined Swedbank and Handelsbanken for shortcomings in depositary banking services. The Financial Supervisory Authority said on Thursday it would charge Handelsbanken 3.5 million crowns ($528,500) and Swedbank 2.5 million for deficiencies in services for fund companies whose assets were held and controlled by the two as custodians.
The regulator said that for many years Swedbank did not conduct annual checks of all its funds. Furthermore, a large number of funds were not inspected at all one year. Swedbank said in a statement it shared the FSA's view that shortcomings had existed and added that it had taken its own initiative to correct them.