In the summer of 2023, Danske Bank notified the Danish Financial Supervisory Authority (the Danish FSA) that the bank had observed an incident at the bank that led to suspicion of a potential breach of regulations. The incident took place in connection with a bond issue for the Norwegian government through Norges Bank. Subsequently, Danske Bank performed a thorough internal investigation of the incident and was in dialogue with the Danish FSA about the matter. The Danish FSA then referred the matter to the Norwegian FSA as the proper authority.

Danske Bank remains fully dedicated to the Norwegian market and takes the trust and integrity that this requires very seriously. Danske Bank acknowledges that the bank’s handling of its role in the bond issue did not adequately balance the bank’s interests in relation to the bond issuer. The bank has had a constructive dialogue with the parties involved and compensated the Norwegian government for this.

Moreover, the bank has initiated relevant measures to improve the bank’s internal processes in connection with similar bond issues, tightened the bank’s internal guidelines and strengthened its internal training. Lastly, the bank is conducting a comprehensive examination of lessons learned, with the involvement of the bank’s internal audit function. The bank will discuss the outcome with Norges Bank.

“We strongly denounce the conduct that is described by the Norwegian FSA and apologise to the parties involved for the incident having occurred at all. Market integrity and the trust of our customers are cornerstones of our business, and whenever issues come to light that might jeopardise or undermine our integrity, we will act with due severity. Once it was clear that the incident raised concerns about a potential breach of regulations, we informed the Danish FSA, performed a thorough internal investigation and strengthened our training and processes. Finally, the severity of the matter meant that we had to make changes to the organisation,” says Carolina Crevatin Martin, Head of Markets at Danske Bank.

The Norwegian FSA has now issued an administrative fine of NOK 50 million for violation of the rules on prohibition of market manipulation. Danske Bank takes note of the Norwegian FSA’s administrative fine.

​