Danske Bank A/S was looking to appoint Jacob Aarup-Andersen as its new CEO, but the Danish Financial Supervisory Authority rejected the bank's chosen candidate, saying he lacked experience.
The Copenhagen-based lender said Oct. 17 that it has withdrawn an application to the FSA for approval of Aarup-Andersen's appointment after the regulator ruled that the bank needed someone with "longer experience, including within certain of Danske Bank's business areas."
Chairman Ole Andersen said Aarup-Andersen was unanimously supported by the board of directors as CEO despite knowing that more experience in certain areas would have been desirable. Aarup-Andersen will continue in his current roles as an executive board member and head of the bank's wealth management unit.
Formerly Danske Bank's CFO, Aarup-Andersen was initially suggested by analysts and media as a likely candidate to succeed Thomas Borgen as CEO after the latter resigned amid a €200 billion money laundering at the lender's Estonian branch, which has attracted international regulatory scrutiny against the bank. Danske Bank has since appointed Jesper Nielsen as interim CEO, but he was ruled out of the running for the permanent CEO role.
"The board is in dialogue with other potential candidates and will now continue the recruitment process in order to find the best possible person for the position," Andersen said.
Nielsen will continue as interim CEO.
As of Oct. 16, US$1 was equivalent to 6.44 Danish kroner.