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Nordea reported to the police in Denmark for misleading investors


  

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Tuesday, 16 August 2011
Finanstilsynet, Denmark's equivalent of the FSA, had reported Nordea Bank in Denmark to the police fro gross misinformation that might mislead investors by not clearly making know its own interest in the company.

The reason is that Nordea, in an investment analysis on the company Pandora did not informed that the bank had substantial financial interests in the company.

Nordea should have told about their interests in the company Pandora, when the bank recommended the jewellery company's shares, according to the Danish FSA. Therefore the police in Denmark are now reviewing whether Nordea break any laws.

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The authority is dissatisfied with that Nordea in an investment analysis did not informed about its "significant financial interest" in the company.

“Given that Nordea had a significant financial interest in Pandora through their indirect ownership, the effective information barriers were broken and that Nordea Corporate Finance, which had analysis for review, had knowledge of this ownership. The FSA assessment is that the general disclaimer does not adequately meet the notice requirement to disclose significant financial interests, writes the FSA.

Nordea's ownership of Pandora was at the time just under 4 percent. , believes that the general disclaimer that came in the analysis would be insufficient given the large holdings.

But Nordea hitback in a press release that the bank takes note of the FSA ruling and noted that Nordea did provide information the on bank’s ownership of Pandora in various circulars.

“All customers that have received investment research received prior to the IPO being launch in late September 2010 also received either the full prospectus or a letter, which explicitly stated that Nordea has an indirect stake in Pandora. Customers therefore have all been informed of its stake before the IPO,” says press officer Claus Christensen of Nordea.

The question now is the finanstilsynet not seeing evidence of this information?
By scancomark.se Team


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