Wednesday, 27 July 2016
Last updated 10 hours ago
Jun 8 2010 | 10:09am ET
A Danish bank has admitted to some advisory failings in pushing clients to invest in a credit hedge fund it managed.
Jyske Bank told the Danish Complaint Board of Banking Services that its advice was less than adequate to five customers who invested in its Jyske Invest Hedge Fund Market-Neutral Bonds. It is not the first case on the matter Jyske has lost before the board, but it is the first time it admitted any wrongdoing.
“We assess cases individually, and in these cases we came to the conclusion that we risked losing them if you judge them with an ordinary burden of proof,” Peter Stig Hansen, head of Jyske’s legal division, told the Copenhagen Post.
Danish authorities have said that Jyske’s marketing of the fund ran “contrary to honest business practices.” Some 10,000 investors lost about 800 million kroner in the fund.
Jyske is far from free of the headaches left by the hedge fund: It still faces a class-action lawsuit leveled by 1,000 of its clients.