SWEDEN - The pension companies' capital buffer continues to decline but it is still at 'satisfactory' levels, Finansinspektionen (FI) claims.
However, it added, since the turn of the year, the long-term interest rates had risen and this represented a favourable factor for the pension companies.
According to FI's findings, three occupational pension funds were reporting a red light in the traffic-light model, the supervisory tool used by the watchdog.
These pension companies account for approximately 2% of the total pension market.
FI said the companies had the capital required by law and the guaranteed pension payments were not threatened - and added it was in contact with these companies in order to ensure that they can manage their risks.
It explained the traffic light model was a supervisory tool and not a formal regulatory regime.
It aims to identify companies that have large exposures against financial risks and insurance risks in relation to their capital, it added.
The objective for FI is to identify at an early stage companies that have such high levels of risk exposure that they cannot with sufficient security fulfill their commitments to customers.
UK inflation unexpectedly rose to 2.7% in August, beating analysts' expectations of a drop to 2.4% from 2.5% the previous month.
The Pensions Advisory Service (TPAS) helped 187,000 people in 2017/18, a 9% fall on the previous year despite setting up special helplines for specific scheme members.
The Liberal Democrat party has passed a motion pledging to cap tax-free lump sums under Freedom of Choice at £40,000 if elected into government.