The Danish Financial Supervisory Authority has published a report showing that Danish banks predominantly place retail investors into their own investment funds, with the five largest banks accounting on average for 92 percent of their retail clients’ investment fund holdings through in-house products. The review highlights the conflict of interest risk when banks recommend their own funds through investment advice, even though such recommendations are permitted if customers are informed in advance that the advice may be affected by conflicts. The findings are based on data on Danish retail investors’ securities holdings and discussions with four banks and one securities dealer. The authority found that the concentration in banks’ own funds is also high among small and medium-sized banks, although levels vary across institutions. It noted that banks will typically earn more from selling their own funds, while investors’ interest is to choose the product that best matches their financial situation, investment horizon, purpose and risk tolerance. Alongside the report, the authority has issued guidance for investors on receiving investment advice.
Danish Finanstilsynet2026-05-28
Danish Financial Supervisory Authority report finds large banks’ own funds make up 92 percent of retail investors’ fund holdings
The Danish Financial Supervisory Authority reports that Danish banks predominantly place retail investors into their own investment funds, with the five largest banks on average holding 92 percent of clients’ fund investments in in-house products. The authority highlights conflicts of interest when banks recommend their own funds, noting banks’ higher earnings from such products versus investors’ interest in suitability, and has issued guidance for investors on investment advice.