Saxo Bank's license is under threat following a Portuguese client's lawsuit

It seems that two days can't go by after I've finally flattered Saxo Bank and them being accused of something that may actually prevent me from eating my hat (Chris - take your hat back in the meanwhile).

Danish press is full of reports today about a Portuguese financial house that threatens to sue Saxo for 10 million euros (or 75 million pounds or 75 million dollars - depends which paper you read...).

According to the papers this is the story: The Portuguese financial house Fortune now requires that the Danish authorities withdraw Saxo Bank licensed to operate financial business.

Simultaneously, Fortune bring an action against Saxo Bank with a claim for damages of 10 million euros or nearly 75 million pounds.

The Portuguese company director, João Laranjeira, is claiming among other things, that Saxo Bank has cheated, because there has been Compliance Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term with the Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term rates in the market and the courses that were traded with Saxo Bank. What I'm hearing is that the claim is that there were discrepancies between Saxo's rates on some currency pairs and the actual market rates.

Evidence submitted to the FSA after a year of gathering evidence:

The company has spent the past year to gather evidence against Saxo Bank. They will now be delivered at the DFSA by Fortune Danish lawyer, Ole Sigetty. According to João Laranjeira documenting evidence that Saxo Bank's handling of Fortunes funds has been unfavorable to the Portuguese company. Fortune has allegedly lost the amount of 10 million euros at the dealings with Saxo Bank.

It is a sad case and I can confirm that Fortune is a Portuguese regulated financial institution, formerly one of our institutional clients. I can not comment on details of the case, because we never give our opinion on customer relationships," says Kasper Elbjørn to Exchange.

"I find the case very strange. If one day we receive a subpoena, we will not be intimidated by it," says Lars Seier Christensen, one of the two CEOs of Saxo Bank. According to Saxo Bank it has plenty of documentation refuting the allegations from the Portuguese company and Saxo says Fortune 'clearly should have known better'. "The allegations are completely baseless and should Fortune's subpoena result in a trial then Saxo Bank will consider the possibility of a libel suit after the case is won," says Lars Seier Christensen.

To be continued.

Thanks to all the friends who helped me with this story.