AFM Fines Saxo Bank €1.6 Million Over BinckBank’s Rule Violations
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The AFM (Dutch Authority for the Financial Markets) said that Saxo Bank was given a €1.6 million fine because of mistakes BinckBank made. BinckBank joined with Saxo Bank in 2019, and now Saxo Bank is responsible for the problems BinckBank caused. Saxo Bank did not argue against the fine.
The AFM explained that the issues happened when BinckBank changed to Saxo Bank. BinckBank broke important rules about keeping customer money safe, checking risks, and treating customers well. These problems hurt investors, making them worried and unsure if they could trust the bank.
AFM Fines Saxo Bank For Risking Investor Safety And Trust
The AFM said that the problems took place between January 1, 2021, and April 11, 2023. This happened when Saxo owned BinckBank. The AFM started looking into BinckBank in 2022 after hearing complaints from customers and reading a bad report from BinckBank’s accountant.
The AFM said customers were upset because they had issues like slow payments, wrong charges, and not being able to find their shares. After checking, the AFM found that BinckBank didn’t keep proper records of investments, didn’t control important parts of the business, and didn’t care for customers as they should have.
Jos Heuvelman, a leader at the AFM, said it’s very important that investors trust the bank with their money. He said that BinckBank did not keep the money safe and this was careless. He also said it was wrong that people with problems didn’t get the help they needed.
AFM Highlights Importance Of Customer Care With Saxo Bank Fines
The AFM also said that because of these mistakes, it was hard to know who owned the investments. Customers faced other issues like having to wait a long time for transfers, getting mistakes in their transactions, and paying too much in fees or taxes. Some customers who wanted to change to other brokers had trouble too, as their investments did not move quickly.
The AFM said these problems were very serious. The rules that BinckBank broke are important because they help protect investors from losing their money or having problems with their investments. The AFM explained that it is very important for banks to act in the best way for their customers, making sure they keep their money safe and treat them fairly.
Saxo Bank is also looking at offers from other companies who want to buy them. After trying to list on the stock market but failing, they are now thinking about other options. Investors such as Altor Equity Partners, Centerbridge Partners, and Interactive Brokers Group are interested in buying Saxo Bank.
