Norwegian Financial Supervisory Authority imposes fine on Danske Bank
In the summer of 2023, Danske Bank self-reported to the Danish Financial Supervisory Authority (Danish FSA) a potential breach of regulations related to a bond issue for the Norwegian government through Norges Bank. Following the incident, Danske Bank conducted an extensive internal investigation and engaged in discussions with the Danish FSA. Subsequently, the Danish FSA referred the matter to the Norwegian Financial Supervisory Authority (Norwegian FSA) for appropriate action.
Danske Bank expressed its ongoing commitment to the Norwegian market and emphasized its dedication to upholding trust and integrity within its operations. The bank acknowledged that its handling of the bond issue did not adequately consider the balance between its interests and those of the bond issuer. In response, Danske Bank engaged in constructive dialogues with all relevant parties and compensated the Norwegian government for the incident.
To prevent similar occurrences in the future, Danske Bank implemented various measures to enhance its internal processes regarding bond issues. This included revising internal guidelines, enhancing training programs, and conducting a thorough assessment of lessons learned with the guidance of the internal audit function. The bank also emphasized the importance of market integrity and customer trust as core principles of its business operations.
Carolina Crevatin Martin, Head of Markets at Danske Bank, expressed disapproval of the conduct described by the Norwegian FSA and offered apologies to all affected parties for the incident. Recognizing the significance of maintaining integrity and customer confidence, Danske Bank conducted a meticulous internal investigation upon identifying potential regulatory breaches and reinforced its training and operational processes. Subsequently, the organization underwent structural changes to address the severity of the matter.
The Norwegian FSA imposed an administrative fine of NOK 50 million on Danske Bank for the violation of market manipulation rules in connection with the bond issue. Danske Bank acknowledged the fine and committed to implementing necessary measures to reinforce compliance and uphold ethical standards within its operations.
In conclusion, Danske Bank’s response to the regulatory incident involving the bond issue underscored its commitment to transparency, accountability, and integrity in all business dealings. The bank’s proactive measures to address regulatory shortcomings and enhance internal processes demonstrate its dedication to maintaining trust and confidence in the financial markets.
