SEB fined millions of SEK for depositary gaffes
Skandinaviska Enskilda Banken has been fined SEK2m (€0.22m) by the Swedish Financial Supervisory Authority (Finansinspektionen) because of failures to implement proper depositary controls.
The regulator (FI) said that during the period 2005-2010, the bank acted as depositary for over 400 funds. However, FI said breaches occurred, in relation to several funds, of both law and fund mandates. These were not identified by SEB despite carrying out its own controls.
FI believes that the quality of SEB’s controls were insufficient, and therefore decided to issue a notification and fine.
SEB has since taken steps to correct the problems identified, FI adds.
“Good consumer protection in the funds market is dependent on functioning depositaries. These should among other things implement ongoing controls of funds companies’ handling of their funds to discover and combat deficiencies,” the regulator said.