Saxo Bank Fined €1.6 Million Over Violations

The Netherlands Authority for the Financial Markets (AFM) has fined Saxo Bank A/S €1.6 million for regulatory violations linked to its 2019 acquisition of BinckBank N.V. The violations occurred from January 2021 to April 2023, when BinckBank’s operations were migrated to Saxo Bank. 

The AFM’s investigation, initiated in 2022 after receiving consumer complaints and a critical report from BinckBank’s auditor, revealed serious lapses in risk management, asset segregation, and customer treatment. The AFM’s inquiry found that BinckBank had significant issues managing investment portfolios during the transition. One of the key failures involved a breach of asset segregation rules, which meant it was unclear who owned specific investments or funds. 

This failure exposed investors to unnecessary risks and compromised their protection in insolvency. Furthermore, the lack of proper control over critical business processes raised concerns about the safety of customer assets. 

Saxo Bank Fined €1.6 Million Over Violations.

According to the AFM, BinckBank could not ensure that investors’ portfolios were correctly administered, leading to instances where securities may have been lent out without customers’ consent. Moreover, the investigation also highlighted the inadequate treatment of customers during the migration period. 

Investors face various problems, including delayed or incorrectly processed transactions, excessive fees, and difficulties transferring their portfolios to other brokers. These issues were compounded by poor customer service, as customers struggled to get accurate information or resolve their concerns. In many cases, calls to customer support went unanswered, and the bank did not keep its promises. 

Furthermore, these failures caused widespread frustration, with many customers reviewing websites to air grievances. As the legal successor to BinckBank, Saxo Bank was held responsible for these violations. Lastly, the AFM imposed three separate fines: €500,000 for asset segregation breaches, €500,000 for insufficient risk management, and €600,000 for inadequate customer treatment. Saxo Bank did not contest the fines, which became final on 25 December 2024.

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