Garantum Wealth Management PB receives a remark and administrative fine

Finansinspektionen has investigated Garantum PB’s compliance – when the company provided advice to customers with regard to investments relating to deposit insurance – with the provisions set out in the Insurance Distribution Act and Commission Delegated Regulation (EU) 2017/2359  that contain information requirements and rules of conduct for distribution of insurance-based investment products.

The investigation focused on whether the information the company provides to customers meets the regulatory requirements with regard to the presentation of costs and fees and information about the benefits and costs associated with a recommended switch from one investment asset to another. The investigation shows that Garantum PB in several cases has violated these central consumer protection provisions. The company also has not documented in the manner required by the regulation its advice on switching investment assets.

The violations have been of such a nature that there are grounds on which to intervene against Garantum PB. However, the violations are not so serious that there is cause to consider withdrawing the company’s authorisation or issuing the company a warning. Finansinspektionen is therefore issuing Garantum PB a remark that will be accompanied by an administrative fine of SEK 1 million.