Finanstilsynet, the Danish Financial Supervisory Authority (FSA), opened 245 cases of potential market abuse in 2024, its new report of activities in 2024 discloses. That is a slight decrease from 2023, but the amount of suspected insider trading cases increased from 132 in 2023 to 142 in 2024.
Investigations into suspected market manipulation went down from 109 to 85, and inquiries from foreign authorities to process went from 19 to 18.
More inspections
The authority did, however, conduct more inspections during the year compared to 2023 – 170 in total – and issued 723 orders and 35 reprimands. In 20 cases, subjects were informed about risks. The numbers for 2023 resulted in 653 orders, 37 reprimands and information about risks being issued in nine cases. Most orders were issued in 2020, with 891 in total.
It also completed a total of ongoing 207 inspections in 2024, where 154 were completed within the set time limit. Since autumn 2019, the FSA’s aim is to complete inspections within eight months.
However, the authority has been focusing on trying to reduce the time of investigations, and those which took longer than eight months took about 9.2 months – an improvement from 2023 when the long investigations took 12 months to complete. In all, the investigations lasted on average 6.8 months.
| Created market abuse cases | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Insider trading | 130 | 88 | 132 | 142 |
| In relation to the whistleblower scheme | 1 | 2 | 2 | ND* |
| Including the passing on of internal knowledge | 1 | 0 | 1 | ND* |
| Sent to foreign authorities | 42 | 20 | 38 | ND* |
| Market manipulation | 157 | 144 | 109 | 85 |
| In relation to whistleblower scheme | 3 | 2 | 0 | ND* |
| Sent to foreign authorities | 11 | 11 | 15 | ND* |
| Inquiries from foreign authorities | 14 | 14 | 19 | 18 |
| Total | 301 | 246 | 260 | 245 |
Fines and actions 2024
During 2024, Finanstilsynet’s work and actions led to the following outcomes:
February: Ekspres Bank A/S accepted a fine of DKr 3,000,000 ($435,338) from the National Unit for Serious Crime for failing to comply with the FSA’s order in June 2019 to conduct a creditworthiness assessment in accordance with section 7 c, subsection 1 of the Credit Agreement Act, cf. section 43, subsection 1 of the Financial Business Act prior to the conclusion of loan agreements.
March: An individual was fined DKr 75,000 ($10,873) for violating Market Abuse Regulation (MAR) Article 15 for market manipulation in 18 cases of wash trades over a period of about 2.5 years. The person used their own, company and family members’ accounts during the trades. This is the first judgment after a legislative amendment that came into effect January 1, 2024, which made it possible to enforce fines on less serious cases of market manipulation.
May: An individual was given 60 days’ probation and DKr 17,439 ($2,527) was confiscated for spot price manipulation in connection to 36 cases over a period of about one year and three months, a violation of MAR Article 15.
June: An individual was given a fine of DKr 100,000 ($14,486) and had DKr 529,530 ($76,705) confiscated for negligent insider trading of approximately DKr 2,200,000 ($318,647) in 2020, which was a violation of the MAR Article 14.
June: An individual was given 40 days of unconditional imprisonment and had approximately DKr 7,300 ($1,059) confiscated following an insider trading deal in September 2022 of DKr 200,000 ($29,005), which was a violation the MAR Article 14(a).
July: Nilfisk Holding A/S adopted an administrative fine of DKr 90,000 ($13,039) for again failing to publish information about changes in share capital within three days, as well as failing to notify the FSA about it. The offences constituted violations of sections 30 and 25 of the Capital Markets Act, cf. section 2, no. 4 and no. 2, of the Executive Order on Administrative Fines in the Financial Area.
September: A company and company director and owner were found guilty of violating MAR Article 15 by market manipulation due to wash trading on eight occasions in June 2022, and fined DKr 75,000 ($10,873) each.
September: Zealand Pharma A/S was fined DKr 90,000 for failing to publish information about changes in share capital within three days, as well as failing to notify the FSA about it. Which was violations of sections 30 and 25, clause 1 of the Capital Markets Act, cf. section 2, no. 4 and no. 2, of the Executive Order on Administrative Fines in the Financial Area.
November: An individual was sentenced to 30 days in prison, and a company was fined DKr 70,000 ($10,148) for violating the prohibition against market manipulation, a violation of MAR Article 15.
November: Nilfisk Holding A/S adopted an administrative fine of DKr 120,000 ($17,389) for again failing to publish information about changes in share capital within three days, as well as failing to notify the FSA about it. These were violations of sections 30 and 25 of the Capital Markets Act, cf. section 2, no. 4 and no. 2, of the Executive Order on Administrative Fines in the Financial Area.
December: Jyske Bank A/S chose to adopt a penalty notice of DKr 23,961,500 ($3,474,592) for violating the Money Laundering Act section 11(1), nos. 4 and 5 on customer due diligence procedures, section 17(1) on enhanced customer due diligence procedures, and section 25(1) on the duty to investigate.
Basic payment accounts rules
In another of the regulator’s investigations, five Danish banks received orders after a number of deficiencies and violations of insufficient compliance with the rules for basic payment accounts were found.
Finanstilsynet started the investigation after learning in 2023 that many citizens still have problems obtaining the statutorily mandated basic payment account, and found “a lot to correct.”
“There are very clear rules for a basic payment account. Therefore, we have a clear expectation that these rights will be secured for the customers, and therefore we are now again tightening the rules for the entire sector,” said the authority’s deputy director Rikke-Louise Ørum Petersen.
Cyber stress test
During 2024, Finanstilsynet also became the first FSA in the EU to have developed and implemented a cyber stress test to assess companies’ ability to handle extensive IT breakdowns.
The test was performed with seven companies, Danske Bank, Jyske Bank, Nykredit, Sydbank and the data centers JN Data, BEC and Bankdata, and completed with good results, according to the authority.
“The test has given all participating companies and the FSA good learning points and strengthened our common understanding of how companies should handle major IT failures,” said deputy director Karen Dortea Abelskov, who is responsible for the FSA’s IT supervision.
Another cyber stress test is planned for 2025, in which Finanstilsynet and the Danish National Bank will focus on how an extensive, long-lasting IT breakdown is handled across actors in the sector, and what consequences it will have at sector level.
