Danish Bank to Refund Clients for Losses in ‘Low-Risk’ Strategy
- Danish bank failed to warn negative returns after fees likely
- FSA says its probe into other banks’ practices continues
Photographer: Freya Ingrid Morales/Bloomberg
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Danske Bank A/S will pay out as much as $16 million to its private banking clients after failing to warn them that putting their savings into low-risk investments could cost them money.
“Our review shows that approximately 900 customers were not adequately informed about the expected negative net return for the affected low-risk strategies,” Bente Nielsen, head of private banking in Denmark, said in a statement. “We offer our apologies and will of course pay compensation to the affected customers.”