Monday 25 January 2021 11:10 am

Deutsche Bank probes mis-selling of investment banking products

An internal probe has begun in relation to Deutsche Bank’s engagement with clients after allegations of mis-selling investment banking products.

The Financial Times reported that the German lender was investigating whether its staff mis-sold products to clients and conspired with these companies to share profits.

The investigation into the breach of EU rules was triggered by client complaints last year.

An audit had found that Deutsche had wrongly categorised client firms under the MiFID rules which requires banks to financially separate their clients.

Sources told the Financial Times that the lender believes some of its staff knowingly sold unsuitable products to customers who may not have been aware of the risk they were taking.

The probe, called Project Teal, is extended to the rest of Europe, but it is believed only Spain and Portugal-based clients were impacted.

The bank will soon make its final disclosures to primary regulators BaFin and the European Central Bank, as the probe draws to a close.

Read more: Boris Johnson says some restrictions could be relaxed ‘before mid February’

Share:
Tags: