COPENHAGEN: Denmark’s financial ombudsman has prepared a draft report to send to Danish police over Danske Bank’s overcharging of customers, a scandal that led to the firing of the institution’s former interim chief executive.
“It’s correct, there is a draft for a police report,” said a spokesman for the Financial Supervisory Authority (FSA), Soren Christensen.
The report is still subject to approval by FSA management, according to Danish daily Jyllands-Posten, which first revealed the news.
Danske Bank refused to comment on ongoing investigations.
The regulatory body said in June it was probing the bank for failing to inform customers that it expected a poor performance from its Flexinvest Fri investment product, and for continuing to sell it to new customers.
“At the time when the bank sold the product, it expected customers’ return after fees to be less than the zero-percent rate on their deposit accounts,” the FSA said in June.
As a result of the scandal, Danske fired former interim CEO and head of domestic bank department Jesper Nielsen.
In June, the bank said it would compensate 87,000 Flexinvest Fri customers, which would cost it around 400 Danish crowns ($60 million).
The dismissal of Nielsen was the first major change since the recruitment of current CEO Chris Vogelzang in June. The new chief executive has a mission to restore trust in the bank after its involvement in a serious money laundering scandal.