Due to deficiencies in its internal governance and control, Länsförsäkringar Bank (LF Bank) is being issued a remark and must pay an administrative fine of SEK 10 million.
LF Bank has for a long time allocated insufficient resources to its compliance function. The function has not been able to carry out appropriate activities, which has meant that the bank could not ensure that it complied with the rules that apply to its operations.
For the period 2007-2009 the bank also had incorrect risk weights for its agricultural exposures. As a result, the bank calculated and reported incorrect capital requirements for its credit risk during this period.
As a whole the deficiencies are serious and LF Bank is being issued a remark and an administrative fine of SEK 10 million.