France’s financial regulator has fined Saxo Bank A/S
€1 million for alleged multiple breaches of conduct rules, including poor
client communication and audit cooperation failures following its merger with
BinckBank NV.
The Autorité des Marchés Financiers (AMF) cited
serious lapses during a 2020 system migration and ordered the decision to be
published without anonymization for five years.
“Saxo Bank failed to inform the five affected clients in a
timely manner, whether in the general terms and conditions or any other
separate document, in a clear and detailed manner, of the changes related to
the change in the procedure for closing open positions,” the regulator said in
an announcement translated from French.
IT Migration Triggered Forced Liquidations and Losses
The case relates to Saxo Bank’s integration of
BinckBank’s French branch in late 2020. Over two weekends, the bank reportedly migrated tens of thousands of client accounts to a new platform.
The AMF found that 55,548 clients were affected by
this transition, with five suffering forced liquidations and financial losses
due to changes in margin calculations and liquidation procedures.
The regulator concluded that Saxo Bank failed to
adequately inform clients about these operational changes, violating EU and French law obligations
Obligations
In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you
In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you
Read this Term.
The Commission said delays and a lack of information left investors unable to make informed decisions, breaching
standards of professionalism and transparency.
Read more: Saxo Australia Will Rebrand to Totality Next Month
Saxo Bank’s handling of French equity savings plans also drew criticism. Clients experienced unclear timelines and poor
communication during outgoing transfers, with meaningful updates often given
only after they complained.
Inspectors also flagged Saxo Bank’s limited
cooperation during an April to October 2022 audit. The AMF said
it received delayed responses, incomplete data, and truncated documents.
AMF Orders Publication and Cost Responsibility
In addition to the €1 million fine, the AMF ordered
the complete, non-anonymized publication of its decision on its website, where it
will remain accessible for five years. Saxo Bank must also bear the cost of the
public disclosure.
Saxo Bank A/S acquired BinckBank NV in December 2018
and fully absorbed its French branch in a merger
Merger
A merger is defined as the absorption of the interest of another. It can include an estate, or contract. There are no specific rules or formats for a union in general. It is a method of combining two or more organizations, business concerns, or other related interests. The terms of a merger are usually by agreement of the parties involved. In the financial sphere, merger refers to an agreement between two or more companies or corporations, public and private, to merge into one entity. Mergers d
A merger is defined as the absorption of the interest of another. It can include an estate, or contract. There are no specific rules or formats for a union in general. It is a method of combining two or more organizations, business concerns, or other related interests. The terms of a merger are usually by agreement of the parties involved. In the financial sphere, merger refers to an agreement between two or more companies or corporations, public and private, to merge into one entity. Mergers d
Read this Term completed by July 2024. The
issues under investigation occurred during and after the November 2020 IT
transition, when client data and operations were shifted to Saxo’s systems.
Early this year, the Dutch Authority for the Financial Markets also fined Saxo Bank €1.6 million for regulatory violations committed by BinckBank
before its merger. Saxo Bank did not appeal the decision.
France’s financial regulator has fined Saxo Bank A/S
€1 million for alleged multiple breaches of conduct rules, including poor
client communication and audit cooperation failures following its merger with
BinckBank NV.
The Autorité des Marchés Financiers (AMF) cited
serious lapses during a 2020 system migration and ordered the decision to be
published without anonymization for five years.
“Saxo Bank failed to inform the five affected clients in a
timely manner, whether in the general terms and conditions or any other
separate document, in a clear and detailed manner, of the changes related to
the change in the procedure for closing open positions,” the regulator said in
an announcement translated from French.
IT Migration Triggered Forced Liquidations and Losses
The case relates to Saxo Bank’s integration of
BinckBank’s French branch in late 2020. Over two weekends, the bank reportedly migrated tens of thousands of client accounts to a new platform.
The AMF found that 55,548 clients were affected by
this transition, with five suffering forced liquidations and financial losses
due to changes in margin calculations and liquidation procedures.
The regulator concluded that Saxo Bank failed to
adequately inform clients about these operational changes, violating EU and French law obligations
Obligations
In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you
In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you
Read this Term.
The Commission said delays and a lack of information left investors unable to make informed decisions, breaching
standards of professionalism and transparency.
Read more: Saxo Australia Will Rebrand to Totality Next Month
Saxo Bank’s handling of French equity savings plans also drew criticism. Clients experienced unclear timelines and poor
communication during outgoing transfers, with meaningful updates often given
only after they complained.
Inspectors also flagged Saxo Bank’s limited
cooperation during an April to October 2022 audit. The AMF said
it received delayed responses, incomplete data, and truncated documents.
AMF Orders Publication and Cost Responsibility
In addition to the €1 million fine, the AMF ordered
the complete, non-anonymized publication of its decision on its website, where it
will remain accessible for five years. Saxo Bank must also bear the cost of the
public disclosure.
Saxo Bank A/S acquired BinckBank NV in December 2018
and fully absorbed its French branch in a merger
Merger
A merger is defined as the absorption of the interest of another. It can include an estate, or contract. There are no specific rules or formats for a union in general. It is a method of combining two or more organizations, business concerns, or other related interests. The terms of a merger are usually by agreement of the parties involved. In the financial sphere, merger refers to an agreement between two or more companies or corporations, public and private, to merge into one entity. Mergers d
A merger is defined as the absorption of the interest of another. It can include an estate, or contract. There are no specific rules or formats for a union in general. It is a method of combining two or more organizations, business concerns, or other related interests. The terms of a merger are usually by agreement of the parties involved. In the financial sphere, merger refers to an agreement between two or more companies or corporations, public and private, to merge into one entity. Mergers d
Read this Term completed by July 2024. The
issues under investigation occurred during and after the November 2020 IT
transition, when client data and operations were shifted to Saxo’s systems.
Early this year, the Dutch Authority for the Financial Markets also fined Saxo Bank €1.6 million for regulatory violations committed by BinckBank
before its merger. Saxo Bank did not appeal the decision.
