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Danish watchdog reports Danske Bank to police for overcharging scandal

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Danish watchdog reports Danske Bank to police for overcharging scandal

Denmark's Financial Supervisory Authority reported Danske Bank A/S to the country's police after concluding its investigation into the lender overcharging clients who had invested in its Flexinvest Fri product, Reuters reported Aug. 30, citing the watchdog.

"This is a very serious breach of the consumer protection rules [which] can also weaken confidence in the financial system," the watchdog said in a statement, according to the newswire.

The investigation was launched in June after Danske reported the scandal that also led to the firing of its interim CEO, Jesper Nielsen, for shortfalls in his oversight of the Flexinvest Fri product.

Danske Bank CEO Chris Vogelzang said the regulator's criticism was harsh but justified, and that the bank had failed to provide correct and adequate information to its customers and maintain their trust. The Danish lender will reimburse the roughly 87,000 affected customers approximately 400 million Danish kroner, the report said.

As of Aug. 29, US$1 was equivalent to 6.74 Danish kroner.