The investment firm Festival International AB has, for a long period of time, been safekeeping financial instruments and related services such as cash management without the requisite authorisation. The company has also demonstrated deficiencies in its internal governance. Finansinspektionen (FI) therefore withdraws Festival’s authorisation to conduct investment services and activities.
Festival International AB has, for almost two years, been safekeeping financial instruments for the account of clients, including custodianship and related services such as cash management without being authorised to do so. Festival has, despite having its attention called to the fact that it lacked authorisation for such operations, continued and also extended the scope of the operations. At the same time, the company has attempted to conceal this by failing to submit information to FI and, in certain cases, by submitting erroneous information.
In addition, Finansinspektionen has found deficiencies in the company’s internal governance and ascertains that the company has not notified FI on time of outsourcing agreements regarding the company’s risk management function.
FI therefore withdraws Festival’s authorisation to conduct investment services and activities. According to the decision, the company must wind up its operations by 24 February 2014 at the latest.
