Klarna Bank's former chief operating officer was forced to leave his post at the helm of one Sweden's biggest online savings platforms having held the post for less than a week.
Stockholm-based Avanza Bank Holding is now looking for a new chief executive officer after withdrawing its "suitability assessment" for Knut Frangsmyr, an 11-year Klarna veteran who started his new position on Nov. 6, according to a statement late on Monday.
The departure follows discussions with Sweden's Financial Supervisory Authority as part of the standard approval process for vetting a new CEO. The red flag concerned penalties connected to the reconstruction of a private property owned by Frangsmyr, Avanza said.
"After discussions with the FSA last night we came to the conclusion there were remaining question marks and an approval in the near term wasn't on the cards," Avanza board member John Hedberg said in an email. Bloomberg News sent two separate messages to Frangsmyr seeking comment.
Revelations of Frangsmyr's penalties first came to light
