meta_id 3301694

On July 6, 2026, Denmark's Financial Supervisory Authority (FSA) published an inspection report following a functional inspection of Saxo Bank A/S conducted in March 2026. The inspection focused on the bank's product governance and suitability assessment practices for customers. The FSA examined the bank's compliance with product governance requirements, which mandate that credit institutions establish arrangements ensuring that financial products offered are compatible with the needs and characteristics of their target market. These requirements also obligate institutions to only offer and recommend products when doing so serves the customer's interest. For complex products sold without advice, institutions must obtain information about the customer's knowledge and experience, assess product suitability, and alert customers if a product is unsuitable. Saxo Bank's business model is characterised by a high-risk profile and extensive offering of complex and risky financial products to retail investors through non-advised trading. The inspection revealed significant deficiencies in the bank's management reporting and analysis of sales to customers outside the intended target market. The FSA determined that the bank's reporting was insufficiently accurate to enable effective monitoring and implementation of measures limiting mis-selling. This creates risk that the bank sells high-risk products to customers with limited risk tolerance without appropriate safeguards. The FSA issued an enforcement order requiring Saxo Bank to strengthen its product governance framework. The bank must accurately measure sales to customers outside product target markets, follow up on mis-selling incidents, and ensure products are sold to appropriate customer segments. This order references the Product Approval Procedures Regulation (BEK no. 245 of March 7, 2023), Sections 17(1) and 17(5).