The Board has full responsibility for AP6’s activities and in those areas where the Board’s work is not regulated by the Sixth AP Fund Act (2000:193), it is regulated by the Rules of Procedure. The Board establishes AP6’s performance targets and its long-term strategy, along with appointing and evaluating the Managing Director and ensuring that there are sound procedures in place for internal controls and monitoring. Furthermore, the Board makes decisions on investment proposals and evaluates AP6’s operations. The Board has set up three committees:
– The Risk & Audit Committee assists the Board with matters concerning audits, financial reporting and risk management.
– The Sustainability Committee assists the Board in a drafting capacity in matters concerning AP6’s sustainability efforts.
– The Remuneration Committee assists the Board in a drafting capacity in matters concerning remuneration principles, remuneration and other employment terms.
Internal controls are essential to efficient operations. The Board is responsible for internal controls. Since AP6 has few employees, and no separate (in-house) function for internal audit, external consultants with the right expertise are instead engaged. The risks identified by internal auditors or through internal controls, are managed by introducing specific activities to the process flow.
The Board’s own assessment
Under the Sixth Swedish National Pension Fund Act (2000:193), the Board must carry out an annual assessment of its management of the fund assets, i.e. a performance review. It must be submitted to the government in conjunction with the presentation of the annual report and the auditors’ report. It is presented in a separate report published on the AP6 website.
AP6’s auditors are appointed by the government. The current auditors are Magnus Svensson Henryson (PwC) and Peter Nils-son (PwC), whose appointment runs until 31 May 2023. The auditors’ work includes examining AP6’s operating activities, administration, financial statements and annual report. Based on their audit, the auditors express an opinion on the accounting records and the administration. Their work also includes verifying that AP6 follows generally accepted accounting and valuation principles, and that the accounting records provide a true and fair view of operations. At least once per year, the auditors present a report on their audit to the Board, along with submitting a written report on their audit of the administration and financial statements. The auditors also report verbally to the Ministry of Finance once a year.
In addition to the Board’s own assessment, the Ministry of Finance conducts an annual assessment of AP6’s operations on behalf of the government. This assessment is carried out for all AP funds with the assistance of external consultants. It is presented in a written communication to the Swedish Par-liament which is published in conjunction with the government confirmed the income statements and balance sheets of the AP funds for the previous financial year.