Banco, the Swedish asset management firm, has been warned by the country's regulator Finansinspektionen, for exceeding the limit on private equity investments by as much as 30%.

The regulator decided to issue a warning rather than revoke the firm's licence because the investment house has proved that it is reducing its holdings, the regulator said in a statement. Banco allowed its private equity allocation in some of its funds rise up to 40%, despite the cap being set at 10%.