The Norwegian Financial Supervisory Authority has identified shortcomings in Nordnet Bank NUF’s investment services for nonprofessional clients. The branch lacks adequate procedures and controls to detect unusually risky trading patterns and determine whether a client requires a renewed appropriateness assessment and warning. This expectation applies even where the branch provides execution services without investment advice, including when clients trade frequently or make extensive use of leveraged products. The review also found that affiliate marketing did not always meet requirements for balanced, clear and nonmisleading information. Some influencer content was not clearly identified as advertising, lacked risk warnings and could be perceived as investment advice or recommendations. Nordnet has since reduced its affiliate portfolio, ended several partnerships and strengthened approval and monitoring controls. It has also improved links to cost information for complex Nordnet Markets products after the authority found that price lists did not clearly disclose spread costs and ongoing financing interest.
2026-09-09Norwegian Finanstilsynet
Norwegian Financial Supervisory Authority identifies retail investor protection shortcomings at Nordnet Bank’s Norwegian branch
The Norwegian Financial Supervisory Authority found that Nordnet Bank’s Norwegian branch lacked adequate controls to identify risky trading by nonprofessional clients and trigger renewed appropriateness assessments or warnings. It also identified deficiencies in affiliate marketing and disclosures of costs for complex products, while acknowledging corrective measures taken by the branch.