|
|
The Danish Financial Supervisory Authority (FSA), or Finanstilsynet, ordered PFA to stop putting collective special bonus provisions on an equal footing with shareholders' equity when it comes to covering the commercial discounts it gave existing and new customers.
The pensions provider said: "PFA does not agree with the FSA about this sanction and is considering an appeal. "In a statement, the FSA said that, based on the information available, it judged that, by having financed discounts to selected customers using funds from collective special bonus provisions, PFA Pension had acted illegally. It had acted contrary to the requirement of fairness in section 21 of the Financial Business Act, the FSA said. "The requirement of fairness applies in any situation where collective special bonus provisions apply discretion to selected clients", it said. The FSA said it was therefore requiring PFA Pension to stop granting discretionary rebates funded by collective special bonus provisions.
Full article (IPE registration required)