Swedish regulator withdraws authorisation of investment firm Exceed
FI’s investigation demonstrates that Exceed has continuously breached key customer protection rules within securities legislation.
Sweden’s Finansinspektion (FI) has withdrawn the authorisation of Exceed Capital Sverige AB. Under FI’s decision, the company loses all its authorisations and may no longer conduct regulated business.
The sanction decision was made by FI’s Board of Directors at an extraordinary meeting on Tuesday.
Exceed is an investment firm whose operations consist primarily of consumer advice on financial instruments through both own advisors and tied agents. The company has around 10,000 customers and approximately 40 employees.
FI’s investigation reveals that Exceed has continuously breached key customer protection rules within securities legislation. For example, the company has advised customers, who are often older, to invest their savings in very complex and risky products without ensuring that they have had the necessary knowledge about the large risks. Another example is that the information that Exceed provided to its customers regarding fees was directly misleading.
As a result, Exceed has not demonstrated the duty of care towards its customers that is required by law. The company also hindered FI’s work during the investigation.
As a result of the decision, Exceed may no longer offer investment advice and the regulated business activities will be discontinued in an orderly manner. All customers will be contacted and receive more information from Exceed about how the winding up process will take place.
The business must be wound up no later than September 2, 2020.
