SEB Compensates Institutional Investors in Estonia
SEB in Estonia has in a specific case decided to compensate investors to the tune of €11.3m, due to an omission to fulfil its information obligations. As collateral agent for the Estonian company OU TR Majad’ s private placement of its corporate bond in June 2007 to institutional investors, SEB in Estonia should have informed investors of any material event within 10 days. Such a material event was the company’s disposal of assets that formed part of the collateral for the bond. SEB in Estonia informed the investors four weeks too late. Nine months later the company was bankrupt.
“Our customers and counterparties should know that we always strive for the highest professional standards. When we discover any faults we have made, we act,” said Annika Falkengren, chief executive officer (CEO) and president of SEB. As it has been hard to define the exact impact of the bank’s omission for the investors, SEB has decided to compensate the investors in full.