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There have been inadequacies in the investment advice that Skandiabanken Aktiebolag has provided through tied agents. The bank has not complied with the rules applicable for receiving commission nor dealt with conflicts of interest in the correct manner. An adverse remark is consequently issued to the bank and an administrative fine of SEK 10 million imposed.
Skandiabanken provides investment advice through tied agents. The bank has in conjunction with such advice received commission from third parties, such as fund managers and product companies, although this was not permitted as the bank had not provided customers with information about this remuneration in the manner required.
There have also been inadequacies in the way Skandiabanken has handled conflicts of interest. The bank had a remuneration system which meant that several of the tied agents received higher remuneration when they brokered certain products. This resulted in incentives for the agents to recommend financial products yielding higher remuneration instead of those that were best for the customer. Skandiabanken has not identified and dealt with the conflict of interest that thereby arose between its tied agents and customers.
Finansinspektionen has therefore issued an adverse remark to Skandiabanken and imposed an administrative fine of SEK 10 million.
