Danske Bank contacts customers about errors in investment agreements

Danske Bank is now contacting about 600 customers in respect of whom manual errors have caused discrepancies between customers’ investment profiles and investment agreements. This is one of the issues that we communicated about in October 2020 in connection with the establishment of the new central unit, which is charged with ensuring satisfactory remediation of a number of legacy issues where errors may have resulted in losses for some of Danske Bank’s customers.

In connection with an extensive review of customers’ investment agreements and investment profiles in September 2020, we established that in a number of these cases, incorrect registration had resulted in discrepancies between customers’ agreements and profiles. Earlier, similar reviews had disclosed similar errors that were corrected, although it was not systematically ensured that they could not occur again. Since September 2020, we have worked on strengthening our controls and have updated our processes for how investment agreements are registered so that similar errors cannot occur again.

The errors in this case may mean that some customers have achieved a lower – or in some cases a higher – return than they would otherwise have achieved if the investment agreement had been registered correctly. Customers having suffered a loss will, of course, be compensated. The compensation amount cannot be calculated until we have reviewed the individual investment profile and agreement together with the individual customer, and we will now make sure that such a review is carried out.

“We apologise for the matter and for the inconvenience this may cause for the affected customers. We are reviewing the cases and will, of course, compensate customers who have suffered a loss due to errors on our part. We have strengthened our controls and internal processes to ensure that something similar will not happen again,” says Peter Rostrup-Nielsen, head of the central unit.

In addition to the about 600 customers affected, Danske Bank will contact another approximately 1,900 customers in respect of whom discrepancies between investment profiles and investment agreements also have been identified. For these customers, the discrepancies are not due to incorrect manual registrations, the case may instead be that these customers had their investment profiles updated during an advisory meeting but did not subsequently return a signed investment agreement.

Of the about 2,500 customers that Danske Bank will be contacting, 2,300 are customers from Denmark, while the rest are from Sweden, Norway and Finland. These are mainly personal customers, but there is also a small group of business customers. Danske Bank has about one million investment customers in total.

Danske Bank

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