Sweden axes FSA chief due to former pensions agency role threatening trust

Daniel Barr, the former head of the Swedish Pensions Agency (Pensionsmyndigheten) and current head of the country’s FSA (Finansinspektionen, FI), is finally being removed from his job as the finance ministry admits an embarrassing conflict of interests over the last few months could threaten confidence.

Niklas Wykman, minister for financial markets, said on Thursday: “The Swedish Financial Supervisory Authority has had to deal with an unusual situation regarding a sanction case against the Swedish Pensions Agency, where Daniel Barr was previously director general.

“It is important that the authority can focus on its mission and maintain a solid foundation of trust,” he said.

The finance ministry said that against this background, the government had decided, after consultation with Barr, that he would leave his current role this summer to investigate how to strengthen the functioning of the Swedish bond market instead.

Barr is to start his new job, where his title will remain director general, at the Swedish Government Offices on 19 June.

Meanwhile, Malin Alpen, head of the payments business department at the FSA, is to take on the role of acting director general from 19 June until a new director general takes office, the ministry said.

A month ago, the FSA officially reprimanded the Swedish Pensions Agency over its loss-making investment in residential property company Heimstaden Bostad, saying it had failed in its risk control duties.

The FSA’s investigation concerned the period 2021 to 2023 – when Barr was heading up the agency.

Back in October, when the FSA escalated its probe into the agency’s investments in Heimstaden Bostad into a sanction case, Barr removed himself from the watchdog’s handling of the case because of his previous role.

Last month, when the FSA reprimanded the agency, despite saying he was still prevented from commenting on the matter, Barr did state that the contract with Heimstaden had been carefully reviewed by both internal and external lawyers before the Swedish Pensions Agency made a decision on the investment.