SIP Nordic Fondkommission AB (SIP Nordic) is receiving a warning and must pay an administrative fine of SEK 6.7 million.
“SIP Nordic has advised consumers to invest in very risky products without considering the consumers’ interests in this advice. We regard this as a serious matter,” says Deputy Director General Susanna Grufman.
SIP Nordic is an investment firm that has authorisation to provide, among other services, investment advice. Finansinspektionen (FI) has investigated how SIP Nordic has considered the interests of its customers when a tied agent has provided investment advice on behalf of the company.
The investigation shows that there have been serious deficiencies; for example, customers were recommended risky and complex products without the company ensuring that these products were suitable for the customer. The suitability explanations were also deficient, and customers did not receive sufficient information about the costs and fees associated with the products. Furthermore, the company has received third-party remuneration despite this not being allowed, and it did not identify or manage a clear conflict of interest relating to management staff in the tied agent.
FI notes that the company, through its actions, has violated several central customer protection provisions and failed in its fundamental obligation to consider the interests of its customers (duty of care). Neither has the company acted in such a manner as to maintain confidence in the securities market. FI considers the violations in this matter to be serious. However, in part due to the measures taken by the company to rectify the deficiencies, FI makes the assessment that it is sufficient to issue a warning with an administrative fine of SEK 6.7 million.
FI’s Board of Directors decided on the sanction on 17 November 2022.