Ola Ramstedt, former chief executive of Skandia Liv, the life arm of the troubled Swedish financial services firm, Skandia, has been arrested in connection with his involvement in a bonus and benefits scandal. Through his lawyer, Ramstedt said he was innocent.

Ulf Göranzon, spokesman for the Swedish criminal police in Stockholm, said: "Ramstedt was arrested on Tuesday. The prosecutor has until midday Friday to decide whether or not to charge Ramstedt and decide whether he remains in custody."