Spain’s financial markets watchdog announced on Thursday that it had opened disciplinary proceedings against German bank Deutsche Bank for two alleged “very serious breaches” of rules when providing advice to Spanish clients, Reuters and News.ro reported. .

Headquarters of Deutsche Bank in HessenPhoto: dpa picture alliance / Alamy / Alamy / Profimedia

Deutsche Bank said in a statement that it is aware of procedures related to the sale of currency derivatives in Spain until April 2021. “While we cannot comment on the details of the issue, as we have previously stated, the bank is reviewing and improving Deutsche Bank’s relevant processes and controls have been added.

Market watchdog CNMV said its measure was based on facts that were also established by internal investigations conducted by Deutsche Bank. He added that the opening of the procedure did not affect their final result.

The CNMV has announced that it has discovered breaches of transparency and disclosure obligations to clients, as well as breaches of obligations to act in the best interests of its clients in the area of ​​OTC (OTC) structured derivatives.

New controversies over Deutsche Bank’s practices

The institution fined Deutsche Bank €3 million in March 2022 for applying significantly higher margins to customers’ purchases of structured bonds. A spokesman for the CNMV did not provide details on the potential fine Deutsche Bank could receive in connection with the derivatives review.

According to Spanish market law, very serious violations can lead to fines of 5 million euros or 5 times the amount of the gross profit or loss avoided as a result of the violation, 5% of the infringing organization’s own resources, 5% of the total funds, regardless of whether own or third parties.

Fines can also increase to 10% of the total annual turnover of the organization found guilty of violating the law.

Deutsche Bank has been at the center of several controversies in recent years, from its dealings with former US President Donald Trump to the late financier Jeffrey Epstein. The German bank has also recently come under fire for continuing to operate in Russia, where it posted record profits in 2022 amid other Western lenders pulling out of the country led by Vladimir Putin.

Deutsche Bank is the largest private bank in Germany.