Around 900 customers to receive compensation as part of the Flexinvest Fri case

As previously communicated, in connection with the Flexinvest Fri case, Danske Bank launched a review of its investment products to identify whether there were similar issues with other products.

So far, the review has shown that in the period from 1 February 2017 to 5 July 2018, the managed account solution Danske Porteføljepleje had a similar issue, as Danske Bank expected the net return for some of the low-risk strategies to be negative and did not adequately inform customers about this.

Today, Danske Bank will begin to inform the affected present and former customers about this and will of course pay compensation to them. The customers affected are primarily Private Banking customers in Denmark.

Head of Private Banking Denmark, Bente Nielsen, comments:

“Our review shows that approximately 900 customers were not adequately informed about the expected negative net return for the affected low-risk strategies. We offer our apologies and will of course pay compensation to the affected customers.”

This is part of the Flexinvest Fri case where a number of management decisions were made in 2017 in connection with the implementation of new regulation (MiFID II). On the basis of the conclusions from the review of Flexinvest Fri in 2019, we have changed our procedures for how and when we inform customers if their strategy comes close to an expected negative net return to prevent something similar from happening again.

Danske Bank is in the process of calculating the compensation to be paid to the individual customers and getting clarification of the tax implications. We will inform our customers about the compensation amounts as the implications are clarified. We expect the total compensation to range between DKK 80 million and DKK 100 million.

Danske Bank continues to cooperate with relevant authorities on this matter.

Danske Bank

  • Stefan Singh Kailay

    Head of Press Relations, Danske Bank Group

    Phone: + 45 45 14 14 00
    Email: stkai@danskebank.dk
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