SØIK, the Danish Public Prosecutor for Special Economic and International Crime, has fined Danske Bank for having given misleading information to approximately 10,000 customers in connection with advice on and sales of the portfolio management product Flexinvest Fri.

The prosecutorial agency says that since 2017, the bank's own calculations told it that the product had an expected negative net return over five years for these 10,000 customers, but it did not tell its customers.

After making inquiries, the Danish Financial Supervisory Authority took action in August 2019 by submitting a police report to SØIK. In November 2019 SØIK levelled charges against Danske Bank for flouting the ban on giving misleading information to customers and potential customers.

The subsequent police investigation has now resulted in the fine, which the bank must pay. Per Fiig, the acting public prosecutor at SØIK, said: "It is essential that customers can be confident that they will receive correct advice from Danish banks. A case like this is serious, as there is a risk that customers' general confidence in the financial system will be weakened when banks do not adequately provide protection and guidance to their customers in accordance with the law."