(Adds Finnish FSA comment, background)
STOCKHOLM, March 8 Finland's financial watchdog
said on Wednesday it had fined Nordic banking group Nordea
1 million euros ($1.1 million) for not obtaining enough
information from elderly private investors before offering
Nordea has had a number of run-ins with the financial
authorities in recent years. It was the Nordic bank named most
in the Panama Papers and admitted at the time it had not always
done enough to safeguard fully against crimes such as money
The fine for Nordea followed an inspection of how banks sold
investment fund products to non-professional customers over 70.
The FSA said Nordea failed to obtain adequate information of
customers' investment objectives and experience, and also found
shortcomings in documentation of client information.
"Moreover, in its investment advice, Nordea had failed to
identify and prevent conflicts of interest," the watchdog said
in a statement.
Nordea said the problems related to a small number of cases
and that it had always operated in clients' best interests.
"In our view, the Financial Supervisory Authority has not
sufficiently taken into consideration the improvements to
investment advice already made and in progress at Nordea,
or the fact that the deficiencies were not wilful," Nordea said
in a statement.
In May 2015, Sweden's financial watchdog fined Nordea 50
million crowns ($5.54 million) - the maximum possible - for
deficiencies in its approach to tackling money laundering.
The Financial Supervisory Authority said then that the flaws
it had uncovered were serious enough to revoke Nordea's banking
licence. The Swedish FSA is still looking into the activities of
Swedish banks exposed in the Panama Papers.
The Finnish FSA also issued public warnings and smaller
fines for Helsinki Area Cooperative Bank, Alexandria
Pankkiiriliike and Investium Ltd, for similar misdemeanors.
($1 = 9.0243 Swedish crowns)
($1 = 0.9477 euros)
(Reporting by Simon Johnson in Stockholm and Tuomas Forsell in
Helsinki.; editing by Daniel Dickson and Edmund Blair)