Friday, January 6, 2017

Won in the court: Get to go to the massesøksmål against DNB – Dagens Næringsliv

Finance

the Norwegian Consumer council has been allowed to go to the massesøksmål against DNB.

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Consumer features in the Oslo district court had upheld in that it can promote massesøksmål against DNB on behalf of 180.000 fondskunder, which it believes has been deceived by the bank to pay for high management fees on mutual funds.

This is a historic day for Norwegian consumers. The district court is clearly that the case is suitable as a class action, which we also expected since all of the 180.000 customers have purchased the same product and for the same gebyrsats, says forbrukerdirektør Randi Flesland.

According to the Consumer this class action settlement is the second largest.

– the Class action lawsuit is the only way these customers can succeed with their claims. To send thousands of DNB customers one by one into the courts is a practical and economic impossibility.

appeal

DNB may appeal the ruling.

According to Marit Giske, communications advisor at DNB, DNB received the ruling.

– But we can’t comment until we have been able to read it, says Giske to DN.

The two parties met over two days in Oslo district court.

  • 180.000 customers in DNB Norway, As Norway and the former Postbanken Norway after Forbrukerrådets opinion paid 690 million dollars for a lot in fees and lost returns.
  • In active managed mutual fund is the fees is between 1.5–2 per cent.
  • In a indeksfond is the fees is between 0.1 and 0.3 per cent.
  • In march, 2015 came the financial supervisory authority of norway, with powerful criticism of the DNB, because it meant sparerne in the fund DNB Norge paid for an actively managed fund, while the fund was approximately the same indeksfond. The authority ordered the DNB either to change the management of the fund, or to cut the price.
  • DNB responded by, among other things, to make changes in forvaltningsteamet for the fund, increase the fund’s risk-taking and cut in the fees to DNB Norway and other funds from 1.8–2.0 per cent to a maximum of 1.4 per cent of total assets.
  • the Consumer has got the NHH Norwegian school of economics-economists Petter Bjerksund and Trond Døskeland to analyze the fund in two batches, and it is their analysis that form the basis when the Consumer requires 690 million. NHH Norwegian school of economics experts believe the funds had a low active share – that took too little risk to be able to provide customers with an excess return that was higher than what they could have gained by buying a indeksfond in the period.
  • Now the Oslo city court found that the Consumer can go to the class action lawsuit against DNB on behalf of fondseierne. The judgment is not enforceable.

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the Norwegian Consumer council believes customers have paid close to 700 million too much in fees, because the funds that were sold as actively managed funds, in reality, was indeksfond.

Believes there are differences

DNB has on his page claimed that the terms of the class action are not met. There are large differences between the individual shareholders, believes the bank.

They have made investments on the basis of various prospects. For example, there are significant differences between the prospectus as the financial supervisory authority of norway reviewed in 2015 and the prospect that applied in 2010, a communications advisor Andreas Nyheim in the DNB stated to DN.

According to him, customers have also got different financial results.

most people have had good returns, but some have unfortunately had a negative return. A number of shareholders have received excess returns in the period, ” says Nyheim.

In a comment after it became known that the district court now allows the Consumer to lead a class action lawsuit, ” says Flesland that the lawsuit does not apply to customers return.

the Oslo stock Exchange had of course risen with or without DNBs help. The lawsuit comes, of course, not the development. The lawsuit comes fondsgebyrene customers have paid, ” says Flesland.

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