Terra Gruppen AS Chief Executive Officer Stein Ole Larsen resigned yesterday and Terra will cut its equity trading desk after the Norwegian Financial Supervisory Authority criticized the management of the unit.
The equity trading desk and associated equity analysis operations will be closed after a preliminary report from the FSA identified “serious deficiencies” in the management of Terra’s stockbroking unit Terra Securities AS, the Oslo-based company said in a statement on its website yesterday. Larsen’s resignation was accepted by the board, which appointed Hege Toft Karlsen, a former executive vice-president at Gjensidige Forsikring ASA, as acting CEO, it said.
“These developments have taken place against the background of weaknesses revealed in Terra Markets by an audit conducted last June by the Financial Supervisory Authority of Norway,” Terra said in the statement. Terra won’t make any further statements until the regulator presents its final report, it said.
Terra Gruppen is an alliance of 79 independent banks and Oslo Bolig Og Sparelag that offers financial services to banks through its subsidiaries.