Saxo Bank has been fined €1.6 million by the Netherlands Authority for the Financial Markets (AFM) following serious breaches by BinckBank N.V., a broker acquired by Saxo Bank in 2019.
Saxo Bank Fined €1.6 Million by AFM
The violations occurred between January 2021 and April 2023. They reportedly involved inadequate asset segregation, poor risk management, and unsatisfactory customer treatment during BinckBank’s migration to Saxo Bank.
The AFM investigation was prompted by consumer complaints and a critical assurance report from BinckBank’s accountant.
Customers reported delayed transactions, incorrect charges, and missing shares.
The AFM said it discovered that BinckBank failed to maintain accurate records of investment portfolios, lacked sufficient control over key business processes, and did not act in the best interests of its clients.
The first fine of €500,000 was for poor administration of investment portfolios, violating asset segregation rules and exposing investors to risks, including unapproved securities lending.
The second fine, also €500,000, was for inadequate control over business processes, which failed to mitigate risks to investors’ funds.
The third fine, €600,000, addressed poor customer service, including delayed transactions and unhelpful responses to complaints, causing significant inconvenience to customers and other financial institutions.
AFM director Jos Heuvelman said they find it irresponsible that investors were at risk due to the shortcomings in the administration and processes and that they did not receive the help they needed.
Saxo Bank did not contest the fines, which became final on 25 December 2024.
