Nord Fondkommission AB’s authorisation is withdrawn

2021-10-13 | Sanctions Consumer Markets

Finansinspektionen (FI) is withdrawing all of Nord Fondkommission AB’s (Nord) authorisations due to severe deficiencies, in part in the company’s advisory services.

Finansinspektionen investigated how Nord ensures that the company considers the interests of its customers when providing investment advice through tied agents. The investigation shows that the company has violated a number of central customer protection provisions when it has sold high-risk corporate bonds to retail customers. For example, Nord has received remuneration from issuers of corporate bonds without identifying or handling this remuneration as third-party remuneration.

Nord has also demonstrated considerable deficiencies in its internal governance and control. The company has conducted a large portion of its business through tied agents, but the company's organisation, governance control, and compliance function have not been subsequently adapted.

FI makes the overall assessment that Nord performed a number of severe violations and thereby is showing that the company does not have the ability to follow the basic rules that are established to protect customers who are investing in financial instruments. The company has thus demonstrated an indifference to and a lack of knowledge about the regulatory framework, and this behaviour is not in line with the requirements on the companies conducting authorised business activities on the financial market. Finansinspektionen makes the overall assessment that there is no possibility for deciding on a warning and the only measure that can apply is to withdraw the company's authorisation. The decision will go into effect immediately.

The business must be wound up no later than 31 January 2022.

Appeal to the Administrative Court

Nord Fondkommission AB has appealed FI's decision to the Administrative Court.

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