Nordea sanctioned by ESMA

Nordea sign
18-07-23 13:40 | About Nordea

As previously communicated, Nordea has since 2015 been subject to an investigation by ESMA of its past practice of including so called “shadow ratings” in its investment research materials.

Nordea’s practice was in line with all other major banks in the Nordic market and was generally considered by Nordic bond issuers and bond investors to have served the market well. In particular, it facilitated for small- and medium sized enterprises to access capital markets funding, without the need to incur substantial costs and work to obtain official credit ratings from credit rating agencies.

However, ESMA considers that it is not permitted to express in investment research material an opinion on credit quality by reference to a scale without being registered as a Credit Rating Agency under the CRA Regulation. Nordea discontinued its shadow ratings in August 2016 , although we disagree with ESMA on the basis that investment research materials are explicitly exempted under Article 3(2) of the CRA Regulation. As for today’s fine Nordea has just received the information and will decide whether to appeal after having analyzed the information.

Latest news by Nordea

Showing 5 of 248 results

CEO Frank Vang-Jensen

CEO blog: Strong result and continued improvements

About Nordea

Today we published our financial results for the third quarter

The White House, USA

Close race, different market scenarios

Markets and investments

Read the latest publication from our Investment Center on the US election

Viktor Sonebäck and Johan Trocmé

Ever heard about Industry 4.0?

Nordea podcasts Businesses

Listen to Johan Trocmé, director at Nordea Thematics, and Viktor Sonebäck, associate at Nordea Thematics, in the latest podcast episode of Nordea On Your Mind

Anders Langworth

Sustainable banking? Yes please!

Sustainability

Good progress within the development of sustainable product offerings for our customers

Showing 5 of 248 results