The Consumer Council cuts DNB demand by 235 million

DNB services stress testDNB logo. Photo Norway Today Media

The Consumer Council cuts DNB demand by 235 million

The Consumer Council has reduced the claim against DNB to NOK 454 million in the appeal proceedings. The original demand was unreasonable, they admit.

 

The Consumer Council lost to DNB in Oslo District Court in the case they fronted on behalf of 180,000 customers in the DNB Norway Funds, but chose to appeal the case. In the appeal, the original claim against DNB of NOK 690 million is reduced to NOK 454 million, Dagens Næringsliv reports.

The Consumer Council during the trial in November argued that DNB’s fund customers should only pay 0.3 per cent in management fees for the DNB Norway funds, the same as for an index fund. I anken er honoraret de mener er rimelig for kundene å betale, økt til 0,8 prosent.

– We see it as a clear acknowledgment that the DNB Norway funds have been actively managed and not an index fund, says information manager in DNB,  Even Westerveld.

Finance Director of the Consumer Council, Jorge Jensen, denies that the cut in the claim against DNB weakens their main argument that customers in the DNB Norway funds have paid for an actively managed fund but have been given an index fund.

– We saw through the work on the case and in court that it seems unreasonable to demand that the fund’s contribution be as low as 0.3 per cent, as a proper index fund demands. We believe a 0.8 per cent fee is a more correct price on such a fund as DNB Norway, says Jensen.

 

© NTB Scanpix / Norway Today

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