Simplification of legal structure
Nordea has been a Nordic bank for 15 years, and now it is time to change our legal structure accordingly.
Nordea’s subsidiaries in Finland, Norway and Denmark were merged with the Swedish parent company Nordea Bank AB (publ) on 2 January 2017. Following the merger, Nordea's banking services in Finland are provided by Nordea Bank AB (publ), Finnish Branch. The merger is part of the on-going simplification of our processes, which aims at harmonising our operations and reinforcing Nordea's position in creating a bank for the future. With the merger, Nordea's banks in the Nordic countries form one strong company, to the benefit of our customers.
Nordea is committed to a strong presence in all Nordic countries also going forward, including Finland, where Nordea operates locally across the country. Decisions will continue to be made close to the customers, as always.
Customer services and banking to remain unchanged
The merger is a legal procedure that will have no effect on our customers. All banking services will remain the same as before. Nordea has a wide range of local operations in Finland, and decisions will still be made close to the customer, as always.
Amount of deposits guaranteed will remain the same
Following the simplification of Nordea’s legal structure on 2 January 2017, our customers' deposit guarantee and investors' compensation scheme became subject to Swedish law. The amount of deposits guaranteed will remain the same as now at EUR 100,000.
Nordea's shareholders approved the merger plans at the Annual General Meeting held on 17 March 2016. The Swedish financial supervisory authority approved the plans in May 2016. Final authority approvals were obtained in December 2016. The mergers were executed on 2 January 2017 according to plans.
All customers who have an account with Nordea received information on the simplification of the legal structure in the spring of 2016. In the autumn of 2016, customers were informed that from the beginning of 2017 onwards, Nordea's banking services in Finland would be provided by Nordea Bank AB (publ), Finnish Branch. Customers received the information either in Netbank, by letter or when establishing a customer relationship.
Following the simplification of Nordea’s group structure on 2 January 2017, the deposits of Nordea's customers have been covered by Swedish law. The amount of deposits guaranteed is the same as before, EUR 100,000. Within the EU, regulations governing deposit guarantees are based on the relevant directive.
Sweden implemented the Directive on Deposit Guarantee Schemes, which had already been enforced in Finland, in July 2016. The Swedish deposit guarantee of EUR 100,000 covers all deposits in one bank, including the deposits in the bank’s Nordic branches.
The Swedish deposit guarantee scheme is managed by the Swedish National Debt Office (Riksgälden). Further information on the deposit guarantee system in Finnish
The EU's deposit guarantee authorities cooperate with each other, and if the deposit guarantee were ever to be activated, the Finnish deposit guarantee authority would handle the communication and the payment of compensation to Finnish depositors on behalf of the Swedish deposit guarantee authority.
The Finnish deposit guarantee scheme contains special protection for assets obtained from the sale of one's own residence, and it is valid for a fixed term of six months after the assets have been deposited. These deposits are compensated for in full if the depositor can reliably verify that the assets have been received from the sale of a residence.
Sweden introduced in July 2016 a similar deposit guarantee for assets exceeding EUR 100,000 received from the sale of one's own residence. However, the Swedish guarantee is more extensive and also covers many other situations in life during which customers may have an exceptional amount of money in their accounts. Such other situations covered by Swedish law include compensation for damage to housing, divorce, estate distribution and compensations arising from the termination of employment or from a sickness, disability or death. The exceptionally extensive guarantee applied in Sweden is valid for 12 months after the assets have been deposited.
Swedish law limits the maximum amount covered to five million Swedish krona for the sum exceeding the regular deposit guarantee (100,000 euros). The Swedish deposit guarantee authority may, however, approve raising this amount if the legislation of the country in which a bank's branch is located provides for a higher maximum amount. With regard to its Finnish Branch, Nordea Bank AB (publ) has filed a petition to the Swedish deposit guarantee authority for raising the guarantee for assets received from the sale of one's home to cover the full amount.
The Swedish deposit guarantee authority has ruled by a decision made on Nordea’s application in September 2016 that the depositors of the Finnish Branch have the right to a deposit guarantee for assets received from the sale of their residence equalling the deposit guarantee laid down in national legislation in Finland. The full deposit guarantee is valid for 6 months after the assets have been deposited. After this period, the raised deposit guarantee described above (EUR 100,000 + SEK 5m) complying with Swedish law will be applied to assets received from the sale of a residence for another period of 6 months.
In the Swedish Investor Compensation Scheme, the maximum compensation is SEK 250,000, which corresponds to EUR 26,100.67 (exchange rate as at 28 Dec. 2016), whereas the maximum compensation in the Finnish Investors' Compensation Scheme is EUR 20,000. Both the Finnish and Swedish schemes are based on an EU directive. The Swedish Investor Compensation Scheme is managed by the Swedish National Debt Office (Riksgälden).
The compensation in Finland covers the cash assets and financial instruments held by customers of investment and custody services who are classified as non-professional clients. The compensation in Sweden covers all customers of investment and custody services, except for investment service providers.Questions and answers about the investors' compensation scheme
Following the change in Nordea’s legal structure on 2 January 2017, the main responsibility for the supervision of Nordea's operations in Finland was transferred to the Swedish supervisory authority. The Finnish Financial Supervisory Authority continues to supervise Nordea's operations in Finland in many ways either directly or in cooperation with the Swedish supervisory authorities. The Finnish Financial Supervisory Authority will also supervise compliance with Finnish law and the Finnish Financial Supervisory Authority's regulations in matters related to customer relationships. Nordea’s operations in Finland are also supervised by the European Central Bank within its jurisdiction, and other competent Finnish authorities.