COPENHAGEN, Aug. 30 (Xinhua) -- Danske Bank, Denmark's largest bank and financial group, was reported to the police by the Financial Supervisory Authority (FSA) in connection with providing customers with false on Friday.
Danske Bank is accused of being aware that a large proportion of its customers could expect a negative return on the investment product Flexinvest Free, yet the bank deliberately failed to notify customers.
"In the opinion of the Danish Financial Supervisory Authority, this is a very serious breach of the consumer protection rules that apply in this area. An infringement that may also weaken confidence in the financial system," said FSA on its website.
According to the Danish Financial Supervisory Authority, Danske Bank not only failed to inform customers but continued to sell investment strategies in Flexinvest Free to new customers over a sustained period, even though the bank was perfectly aware that they were providing bad business advice to the bank's customers.
From the beginning of 2017 until the end of September 2018, the bank misled further 7,502 customers to invest in the product.
Furthermore, the FSA has ordered Danske Bank to ensure that they immediately comply with investor protection rules when selling and advising on investment products.
Danske Bank has also been ordered to correct all the defective communication sent to every Flexinvest Free customer who has had an expected negative net return.