AFM Imposes €1.6 Million Fines on Saxo Bank Over BinckBank

The Netherlands Authority for the Financial Markets (AFM) has imposed a total of €1.6 million in fines on Saxo Bank A/S for violations related to its acquisition of BinckBank N.V., a broker offering online investment services. The penalties stem from a series of regulatory breaches that occurred between January 1, 2021, and April 11, 2023, during the migration process to Saxo Bank.

The investigation found that BinckBank failed to comply with key financial regulations, including asset segregation, risk management, and customer treatment. These violations exposed investors to significant risks and eroded trust in the financial system.

AFM Imposes €1.6 Million Fines on Saxo Bank Over BinckBank Violation

The AFM’s inquiry was prompted by consumer complaints and a critical report from BinckBank’s accountant in 2022. Issues raised by customers included delayed transactions, incorrect charges, and untraceable shares. The investigation revealed serious deficiencies in BinckBank’s portfolio administration, leaving it unclear who owned the investments and resulting in inadequate protection for investors. Furthermore, BinckBank lacked effective controls over critical business processes, heightening the risk of investor losses.

As the legal successor of BinckBank, Saxo Bank faced three separate fines. The first fine of €500,000 was due to failures in asset segregation and portfolio administration, which potentially jeopardized investor protection. The second €500,000 fine was for insufficient risk management processes, which were either too late, ineffectively, or not at all. The third fine of €600,000 stemmed from poor customer service during the migration, including delays in transfers, excessive charges, and long waits for assistance, which exacerbated customer frustration.

Saxo Bank did not contest the fines, and as a result, they became irrevocable on December 25, 2024. These penalties serve as a stark reminder of the importance of maintaining robust governance and customer-centric practices, particularly during significant corporate transitions.

Company Overview

Saxo Bank stands out as a premier multi-asset broker, offering exceptional research capabilities and an exceptional trading platform, along with an impressive array of over 70,000 tradable instruments, which include spot forex, FX options, NDFs, CFDs, stocks, stock options, exchange-traded funds, ETNs, futures, and 33,000 bonds. For engaged traders, Saxo Bank offers a comprehensive and immersive trading journey, boasting an extensive toolkit, research resources, and premium features.

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