(Reuters) - Sweden’s financial watchdog said on Monday it was ending a probe into how Swedbank (SWEDa.ST) dealt with potential conflicts of interest related to the activities of former executives without imposing any penalties.
The watchdog said the investigation had found faults in how the bank dealt with the issues but that these were not substantial enough to warrant taking any further action in the case.
The Financial Supervisory Authority launched the probe after reports that some members of the bank’s top management had been involved in property deals as a sideline to their jobs, sometimes with the bank’s own customers.
“The FSA found deficiencies in Swedbank’s processes,” the watchdog said in a statement.
“The FSA, however, does not consider that the bank has neglected its duties according to the law and regulations in such a way that there is a reason for the FSA to take action.”
Chief Executive Officer Michael Wolf, who signed off on the deals, was fired last year and several other members of the top management were replaced.
Last year, the FSA dropped an preliminary investigation into suspected insider trading by Wolf.
Reporting by Simon Johnson; editing by Niklas Pollard