France’s financial regulator has fined Saxo Bank A/S €1 million for alleged multiple breaches of conduct rules, including poor client communication and audit cooperation failures following its merger with BinckBank NV.

The Autorité des Marchés Financiers (AMF) cited serious lapses during a 2020 system migration and ordered the decision to be published without anonymization for five years.

IT Migration Triggered Forced Liquidations and Losses

The case relates to Saxo Bank’s integration of BinckBank’s French branch in late 2020. Over two weekends, the bank migrated tens of thousands of client accounts to a new platform.

The AMF found that 55,548 clients were affected by this transition, with five suffering forced liquidations and financial losses due to changes in margin calculations and liquidation procedures.

The regulator concluded that Saxo Bank failed to adequately inform clients about these operational changes, violating EU and French law obligations.

The Commission said delays and a lack of information left investors unable to make informed decisions, breaching standards of professionalism and transparency.

Saxo Bank’s handling of French equity savings plans (PEA) also drew criticism. Clients experienced unclear timelines and poor communication during outgoing transfers, with meaningful updates often given only after they complained.

Inspectors also flagged Saxo Bank’s limited cooperation during an April to October 2022 audit. The AMF said it received delayed responses, incomplete data, and truncated documents.

AMF Orders Publication and Cost Responsibility

In addition to the €1 million fine, the AMF ordered the complete, non-anonymized publication of its decision on its website, where it will remain accessible for five years. Saxo Bank must also bear the cost of the public disclosure.

Saxo Bank A/S acquired BinckBank NV in December 2018 and fully absorbed its French branch in a merger completed by July 2024. The issues under investigation occurred during and after the November 2020 IT transition, when client data and operations were shifted to Saxo’s systems.

Early this year, the Dutch Authority for the Financial Markets also fined Saxo Bank €1.6 million for regulatory violations committed by BinckBank prior to its merger. Saxo Bank, which acquired BinckBank in 2019 and finalized the platform integration last year, did not appeal the decision. The AFM announced the penalty on Tuesday, holding Saxo responsible as BinckBank’s legal successor.

Source: Finance Magnates