Nordea to apply to Court of Appeals against Blomqvist court decision

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The Nordea Group intends to take their case to the Court of Appeals against a recent decision made by the Helsinki District Court, ordering the bank to reimburse EUR 1 million plus interest to a customer who had invested a substantial amount of money in mutual funds and lost half of the invested funds.
      The verdict was given on the basis of the fact that Nordea’s counselling was found insufficient, while not being in compliance with the Insurance Contracts Act.
     
The District Court ruled that the brochures, the terms and conditions of the agreement, and the price list, which the client - dancing master Åke Blomqvist - had been given, were not enough to warn him of potential investment risks linked with an endowment insurance policy.
      This is the first time for the Appeal Court to rule whether or not counselling relating to an endowment insurance policy has been adequate.
      Nordea justifies its appeal by saying that the decision by the District Court was faulty and groundless. The bank regarded Åke Blomqvist as an expert investor who had significant wealth.
     
According to Nordea, Blomqvist was looking for an investment with a high expected yield, and the risks relating to such investments were explained to him. Moreover, the bank points out that Blomqvist had signed a document saying that he had understood the risks involved.
      However, Blomqvist claimed in court that he had never read any such documents.
      In Nordea's view, Blomqvist’s report contained ”inconsistencies and incredible allegations”.
      Åke Blomqvist and his wife lost half of their investments or EUR 1 million while keeping their money in mutual funds that collapsed.
     
Blomqvist insists that he was not warned of any risks of losing assets relating to the Selekta endowment insurance policy that had been tailored to meet his requirements. Moreover, the bank had promised that the investment would bring an annual profit of 10 per cent.


Previously in HS International Edition:
  Nordea Bank to reimburse customer for lost funds (13.5.2008)

See also:
  Insurance Supervisory Authority: Blomqvist case can lead to further lawsuits (14.5.2008)

Links:
  Nordea Bank

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