On 6 September 2017, the Board of Directors of Nordea Bank AB (publ) initiated a process to re-domicile the parent company from Sweden to Finland. The Boards of Directors of each of Nordea Bank AB (publ) and the newly established and wholly-owned Finnish company Nordea Holding Abp have as of 25 October 2017 signed a joint cross-border merger plan that was approved by the shareholders at the annual general meeting on 15 March 2018. The execution of the merger is further conditional upon, for example, receiving the requisite regulatory approvals. The merger, and consequently the re-domiciliation, is planned to be effected during the second half of 2018, tentatively on 1 October 2018.
Deposit Guarantee Scheme
After the merger, deposits will be covered mainly by the Finnish deposit guarantee scheme. The scheme will cover deposits by an amount equivalent of up to EUR 100,000 and, in addition, the deposit is covered in full if it results from the sale of a residence for own use and if the deposit is intended to be used for buying a new residence for own use. Such coverage is valid for six months from the day the funds were deposited on the account. The coverage is paid-out if a bank is permanently insolvent and the Finnish Financial Stability Authority in cooperation with the Finnish Financial Supervisory Authority and the Bank of Finland decides that the bank’s deposits shall be compensated by the deposit guarantee fund. Nordea will also join the Danish, Norwegian and Swedish deposit guarantee schemes as a supplement to the Finnish coverage.
The deposit guarantee covers private individuals, companies and other legal entities. Certain businesses and institutions will, as today under the Swedish deposit guarantee, not be covered by the Finnish deposit guarantee. The guarantee does for example not cover financial institutions or public authorities. Until three months after having received information about the merger depositors have the right to free of charge or penalty from the bank withdraw or transfer, for example to another bank, the share of deposits, including accrued interest, that exceeds the maximum coverage levels as a result of the merger.
Read more about the Finnish deposit guarantee scheme here.
Investor Compensation Scheme
The investor compensation scheme will be determined in accordance with the Finnish investor compensation rules. Nordea will also join the investor compensation schemes in Denmark, Norway and Sweden to supplement the Finnish coverage if relevant.
Read more about Finnish Investor Compensation Fund here.