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Denmark’s Financial Regulator Has Prepared a Report for Police On Danske Overcharging Scandal

Denmark’s financial watchdog has ready a draft report to send to Danish police over Danske Bank’s overcharging its own customers, a scandal that led to the dissolution of the bank’s former interim chief executive.

“It’s correct, there’s a draft for a police report,” a spokesman for the Financial Supervisory Authority (FSA), Soren Christensen, informed Reuters.

According to Danish day by day Jyllands-Posten, which first reported the story, the information ready for the police is still topic to approval by FSA management.

Danske Bank refused to comment on recent investigations.

The FSA mentioned in June it was investigating the bank for failing to tell clients that it anticipated a poor performance from its Flexinvest Fri funding product, and for continuing to sell it to new clients.

“At the time when the bank bought the product, it expected prospects’ return after charges to be less than the zero percent charge on their deposit accounts,” the FSA stated in June.

Danske, which fired former interim CEO and head of its domestic bank Jesper Nielsen because of the scandal, stated in June it might compensate 87,000 Flexinvest Fri customers, costing the bank around 400 million Danish crowns ($60 million).

The dismissal of Nielsen was the first significant change since CEO Chris Vogelzang took cost in June with a mission to revive trust within the lender after its involvement in a substantial money laundering scandal.

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