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Danish Financial Regulator Prepares Report for Police over Danske Malpractice

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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.

Source Link: https://www.reuters.com/article/us-danske-bank-scandal/danish-regulator-prepares-report-for-police-on-danske-overcharging-idUSKCN1VB1IM

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Ezra Ondara

Ezra Ondara

Ezra Ondara is a freelance writer and journalist with a keen interest digital marketing, finance, real estate and insurance. He has a nose for news in these key areas and is determined to keep online readers and enthusiasts up to date with real stories as they happen from all around the globe. When he’s not poking his nose into the business world, he will be watching the Premier League over the weekend or out of town with his family.

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