TITLE: Denmark's Financial Supervisory Authority Issues Enforcement Order to Nykredit Portfolio Administration Following Functional Inspection
BODY:
On August 13, 2026, Denmark's Financial Supervisory Authority (FSA) published a functional inspection report concerning Nykredit Portefølje Administration A/S, an investment management company. The FSA conducted the inspection in April 2026 as part of a thematic review of two investment management companies and two alternative investment fund managers, focusing on compliance with the Packaged Retail and Insurance-based Investment Products Regulation (PRIIP).
The inspection examined Nykredit Portefølje Administration's procedures for preparing and controlling Key Information Documents (KID), which are standardised documents designed to provide retail and semi-professional investors with clear, understandable, and comparable information about investment products. These documents enable investors to understand product risks, costs, and potential returns to make informed investment decisions.
The FSA identified significant compliance gaps. Nykredit Portefølje Administration lacked documented procedures to ensure compliance with PRIIP requirements for KID preparation, review, and publication. Responsibility allocation between departments was not clearly documented, and essential governance documents for key processes and controls were absent. These deficiencies created risks of errors in investor-critical documents and resulted in the publication of multiple KIDs that should not have been made public.
In response, the FSA issued an enforcement order requiring Nykredit Portefølje Administration to strengthen documentation and controls for KID preparation and publication. The order was issued under Article 57(1)(a) and (c) of the FAIF Level II Regulation, Section 27(2) of the FAIF Act, and Section 71(1) of the Financial Instruments Act (FIL).
REFERENCES:
Financial Supervisory Authority (FSA): https://www.finanstilsynet.dk/