Success for Swedish Pensions Agency as Allra loses appeal

The Svea Court of Appeal in Stockholm has sentenced representatives of disgraced pension provider Allra to imprisonment and to pay damages of approximately SEK 170m, with interest.

The ruling on 22 July is a success for the Swedish Pensions Agency, which is trying to recoup losses of savers in the country’s premium pension system. The case concerns events that happened in 2012 on the agency’s fund marketplace.

Allra representatives have been ordered to pay the agency SEK 170m on behalf of pension savers and pensioners. In addition to the damages, the Court of Appeal also ordered them to pay an additional SEK 120m in interest.

The Court of Appeal ruled that the crimes committed by Allra were serious, have caused financial damage to pension funds and abused the trust placed on it to manage pension savings.

Swedish Pensions Agency director-general, Daniel Barr, said that 100,000 pension savers have been affected by the scandal. He believes the ruling is positive for the confidence savers place in the pension system.

The agreement between Allra and the Swedish Pensions Agency was terminated in March 2017 as the company had breached its obligations. Several representatives were also reported to the police by the agency.

The original hearing was held in 2019 against four people connected to Allra, in which the agency presented the case for a single claim in damages amounting to SEK 170m

The claim for damages is based on the agency believing that pension savers suffered damage due to the funds, in regards to securities transactions with the company Oak Capital in 2012.

In recent years, 21 funds have been deregistered from the premium pension fund marketplace due to breaches of the cooperation agreement that exists between the fund manager and the Swedish Pensions Agency.

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