Nordea has been issued with a public warning and a one-million euro penalty payment by the Finnish Financial Supervisory Authority for deficiencies in the investment advice provided by the bank.
- Nordea takes the Financial Supervisory Authority’s observations on its advisory services seriously. Here at Nordea, we are committed to making sure that the investment advice we give is in the best interests of our customers, says Riikka Laine-Tolonen, Deputy Head of Banking at Nordea.
The Finnish Financial Supervisory Authority’s audit revealed, for example, deficiencies concerning the recording of matters agreed with customers in meetings and customer information in Nordea’s systems. There were no cases where the advice given was not in the best interests of the customer or had caused damage to the customer.
- As the Financial Supervisory Authority has stated in the reasons for its decision, Nordea had already initiated improvement measures before the Financial Supervisory Authority’s audit. These measures were continued after the audit. Regulation is increasing all the time. The entire sector, including Nordea, must constantly improve its practices. We are working towards this every day.
The Financial Supervisory Authority reviewed a small number of customers. Deficiencies were found only in the case of a few customers. In our view, the Financial Supervisory Authority has not sufficiently taken into consideration the improvements to investment advice already made and in progress at Nordea, or the fact that the deficiencies were not wilful.
The Financial Supervisory Authority’s observations concern personal customers of Nordea. Nordea employs a different operating model when providing advice to corporate customers and Private Banking customers.
Riikka Laine-Tolonen, Deputy Head of Banking, +358 50 343 0585
Kati Tommiska, Head of Communications, Finland, +358 50 382 1391