Danish FSA orders Saxo Bank to revise client assessment info
Danish Financial Supervisory Authority (FSA) today announced the issue of an order to multi-asset investment specialist Saxo Bank regarding the information it provides to customers about suitability tests.
According to the current regulations, once a retail investor has taken a suitability test, a trading platform must not inform investors that they have the opportunity to take a new test. The order tells Saxo to ensure that the purpose of the suitability test is not diluted and that customers relate to their test result before an investment.
The Danish Financial Supervisory Authority has ordered Saxo Bank A / S to remove the information that customers can take the suitability test again after the customer has already completed the test and has been presented with the result of the test.
The order is based on guidelines from ESMA which has formulated best practices under MIFID II. The document describes how a securities brokerages should warn retail customers about complex products. It is based on these guidelines, the Danish regulator has assessed that an order has to be issued as to Saxo Bank. An example of bad practice, according to ESMA, is a warning that includes the ability to immediately retake the assessment test.