Following submission of a declaration to the Federal Reserve Board of Governors in the US, Nordea will now be treated as a Financial Holding Company (FHC) under the US Bank Holding Company Act. The new status allows Nordea to participate in securities offerings into the United States.
“We welcome this new designation, which gives us the flexibility to best support our clients seeking to engage in transactions with a US component,” says Philip Asp, Head of Investment Banking & Equities at Nordea. “It places us in a great position to increase our relevance, seize new opportunities and support our Nordic clients with their overall capital needs.”
We welcome this new designation, which gives us the flexibility to best support our clients seeking to engage in transactions with a US component.
Expanded capabilities to serve our clients
Nordea has had a US presence for more than 40 years, including its New York Branch, which primarily serves Nordic companies and select US companies with a Nordic connection as well as offers Nordic-based services in the US.
Obtaining FHC status now allows Nordea to expand its range of business activities permitted in the US, including leading securities offerings into the US marketplace. It also expands the range of permitted investments and streamlines the notice and approval procedures for certain new activities and investments in the US.
Being treated as an FHC does not result in any change in corporate structure, and no new corporate entities are established. Rather, FHC status is an additional designation Nordea now has with the Federal Reserve. To the extent required by applicable law or regulation, Nordea’s activities in the US will be facilitated by its affiliated SEC registered broker-dealer pursuant to SEC Rule 15a-6.