The Financial Supervisory Authority (FI) has fined SEB Pank €2,500 for failure to comply with requirements for the provision of financial services, after making better loan interest rates dependent on holding a pension fund with the bank.
SEB had made the terms of its financial services agreement dependent on holding a mandatory pension fund unit, which constituted a misdemeanor, the FI said, according to ERR's online Estonian news.
Current Estonian law prohibits the sale of pension fund units from being linked to any other financial service. For example, banks are barred from predicating a loan interest rate on whether a person has joined a pension fund.
Similarly, a bank may not compel a pension fund unit-holder to transfer the investment of that pension fund to the same service provider in order to get a more competitive loan interest rate, it is reported.
Editor: Andrew Whyte