Announcement Of The Financial Business Act

Original Language Title: Bekendtgørelse af lov om finansiel virksomhed

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Read the untranslated law here: https://www.retsinformation.dk/Forms/R0710.aspx?id=115641

Overview (table of contents) Chapter 1 scope

Chapter 2 Definitions

Chapter 3 Permit, exclusive rights, etc.

Chapter 4 Other permitted activities

Chapter 5-foreign companies

Chapter 6 Good usage, price information and contract conditions

Chapter 7 Ownership

Chapter 8 management and fitting-out of the company

Chapter 9 Disclosure of confidential information

Chapter 10 the solvency

Chapter 11 Funds placement and liquidity

Chapter 12 the business rules, consolidation, etc.

Chapter 13 annual report, review and application of the year's profits

Chapter 14 aggregation and transformation

Chapter 15 Termination

Chapter 16 crisis management

Chapter 17 (repealed)

Chapter 18 specific rules for insurance companies

Chapter 19 Issuers of electronic money

Chapter 19 (a) the money and pension Panel

Chapter 20 Sparevirksomheder

Chapter 20 (a) Investment Advisors

Chapter 21 Supervision, etc.

Chapter 22 Charges

Chapter 23 Delegation-and complaints provisions

Chapter 24 Criminal provisions

Chapter 25 the entry into force, transitional provisions, changes in other legislation, the Faroe Islands and Greenland

Annex 1

Annex 2

Annex 3

Annex 4

Annex 5

Annex 6

Annex 7

Annex 8 The full text of the announcement of the financial business Act 1)

Hereby published the financial business Act, see. lovbekendtgørelse nr. 1413 by 10. December 2007 with the changes imposed by section 4 of Act No. 219 of 5. April 2008.

Title I

General provisions

Chapter 1

The scope of the

General rules on the scope of the

§ 1. This law shall apply to financial companies, see. § 5 (1) (8). 1, as well as activities covered by paragraphs 2 to 11.

(2). For financial holding companies, see § 43 (1), Chapter 7, article 64, paragraph 4, article 117, article 124, paragraph 2, no. 1, § 125 (2) nr. 1, chapter 13, § § 344-348 and 357, § 361 (1). 6, and paragraph 2, § 368 (2) and (3), (4), no. 1, and (5) and § § 369 and 370 application.

(3). The law applies to branches here in the land of credit institutions, investment firms, management companies and insurance companies authorised in a country outside the European Union, which the community has not concluded an agreement with in the financial sphere, with the deviations, as branch relationship requires, or as provided for in or pursuant to international agreement. The Danish financial supervisory authority shall lay down detailed rules on the subject. The Danish public companies Act provisions relating to branches of foreign corporations apply to the in 1. paragraph mentioned branches.

(4). For branches in this country by credit institutions, management companies and insurance companies authorized in another country within the European Union or in a country with which the community has entered into an agreement on financial matters, see sections 30, 32, 34-36, 43, 44, 47, 48, 50-60, 344 and 345, § 347, paragraphs 1, 2, 4 and 5, § 348, § 354 a, paragraph 1 (2) No. 2 and 4-8, and paragraphs 3-5, § 373 and 374, § apply. For branches in this country by credit institutions, see section 152 (a), paragraph 2 2. paragraph, section 360, section 362, paragraph 4, and articles 368-370 also apply. For branches in this country by credit institutions and investment firms which are authorised to provide investment services in another country within the European Union or in a country with which the community has entered into an agreement on financial matters, and which carry out such activity in this country, the provisions of sections 30, 32 and 43, section 72 (2), nr. 5, 344, 345, § § § 347, paragraphs 1, 2, 4 and 5, § 348 and § 354 a, paragraph 1, paragraph 2, no. 2 and 7, and paragraphs 3 to 5 shall apply.

(5). For services here in the country granted by credit institutions, management companies and insurance companies authorized in another country within the European Union or a country with which the community has entered into an agreement on financial matters, see §§ 31, 36, 43, 44 and 46-60, § 347 (1) and § 348, paragraph 1 shall apply. For services here in the country granted by credit institutions and investment firms which are authorised to provide investment services in another country within the European Union or in a country with which the community has entered into an agreement on the financial area, see section 31, § 347 (1) and § 348, paragraph 1 shall apply.

(6). For services with securities trading done in this country by credit institutions and investment firms which are authorised in a country outside the European Union, which the community has not concluded an agreement with in the financial field, see sections 33 and 43, § 347 (1) and § 348 application.

(7). For services provided here in the land of insurers authorised in a country outside the European Union, which the community has not concluded an agreement with in the financial field, see section 37 application.

(8). Cooperative banks, which are members of the Association of Danish cooperative banks may jointly meet all statutory requirements. The Association is considered one financial institution in relation to the provisions of this law.

(9). For affiliated cooperative banks, see sections 5 and 6, section 7, paragraph 1-6, § 12, § 15, paragraphs 2 and 4, §§ 16, 17, 24-26, 43, 45-48, 50-52, 64-67, 69, 73, 74, 76-80, 85-88 and 92, § 151 (2), sections 176 and 177, section 178 (1), §§ 183-198, § 199, paragraphs 2 to 4, 8 and 11, sections 203 and 204, § 231 (1) and § § 232, 235 and 241-244, 344-357 and 372, see. § § 373 and 374, use.

Paragraph 10. Chapter 19 shall apply to electronic money institutions. Companies with permission under section 7 (1), except for section 311 do not fall within the scope of chapter 19.

Paragraph 11. Chapter 20 are applicable to sparevirksomheder.

Paragraph 12. Chapter 20 (a) shall apply to investment advisers.

Paragraph 13. Provisions relating to the Board of directors or members thereof in § 5 (1) (8). 7 (b), article 76, article 77, paragraphs 1 and 3, article 78, paragraph 1, article 90, paragraph 2, article 98, section 108, paragraph 2 and 3, article 115, section 144, paragraph 1, article 199, paragraph 9 and 10, §§ 203, 209, 247 and 296, and § 327, paragraph 3, shall in the SES with a two-tier management system only apply to the Supervisory Board or the members thereof mutatis mutandis.

Paragraph 14. Provisions relating to the Board of directors or members thereof as well as the provisions on the management of section 14 (1), (2). paragraphs, sections 64, 65, 73-75, 80, 83, 87, 94, 110 and 117, section 179, no. 2, section 180, nr. 2, sections 184 and 185, section 233, section 289, paragraph 1, section 299, § 317, paragraph 3, section 346, (2) and (3) section 349 paragraph 2, nr. 2, § 355 paragraph 2, nr. 9, and (3) and §§ 356, 373 and 374 must in SES with a two-tier management system in addition to the management body and the members thereof, see. § 8, paragraph 1, of the Act on a European company (SE-law), also apply to the Supervisory Board or the members thereof mutatis mutandis.

Paragraph 15. For operators of regulated markets resident in this country, in another country within the European Union or in a country with which the community has entered into an agreement on the financial area, authorized under this Act to operate multilateral trading facilities, see. § 5 (1) (8). 20, the provisions of § 9, paragraph 9, article 14, paragraph 1, no. 1, 3-6 and 8 and paragraph 2-5, § 39, paragraph 6, Chapter 7, sections 70-72, Chapter 9, section 125 (1) and 4-6, §§ 127-129, § 131, paragraphs 1, 3, 4 and 6, § 132, section 135 (1) and (2) section 136, section 139, section 142, paragraph 1, § 143, § 204 (1) of section 223, § 224, paragraph 5, article 226, paragraph 5, § § 344-352, § 355, § 361 (1). 19, § § 368-371, 372 (1) § § 373 and annex 4, section A, point 1. 8, application, with the deviations as the relationship requires. For operators of regulated markets established in another country within the European Union or in a country with which the community has entered into an agreement in the financial sphere, which operate multilateral trading facilities from this country, the provisions of section 31, paragraph 11, and section 32 shall apply. For operators of regulated markets, resident in a country outside the European Union, which the community has not concluded an agreement with in the financial sphere, which operate multilateral trading facilities from this country, see § 32 shall apply.

Specific rules concerning the scope of investment management companies

section 1 a. sections 38 and 39 shall not apply to investment management companies, which alone are authorized to exercise the powers set out in annex 6, nr. 2-6 activities mentioned.

Specific rules concerning the scope of insurance companies

§ 2. sections 61, 62 and 170-178 shall not apply to lateral pension funds and the mutual insurance companies covered by the law.

§ 3. For reinsurance and co-insurance can FSA lay down special rules or derogations.

§ 4. This law rules on trusts shall apply where the parent undertaking is an insurance company.


(2). The Danish financial supervisory authority may provide that this Act or the rules of the Danish public companies act corporations, except for the Danish public companies Act section 49, paragraph 3, also finds application in whole or in part on groups of insurance companies, which do not constitute a group of companies pursuant to section 5 (1) (8). 9, but which may have such a mutual Association, the application of the said rules must be considered as required. The companies concerned shall designate one of the § 12, 3. point, covered, and here in the land of resident company, which should be regarded as the parent company. If this does not happen, appoints the FSA company.

Chapter 2

Definitions

§ 5. In this Act, the term:





1) financial companies:





(a)) financial institutions.

b) mortgage companies.

c) stockbroking companies.

d) Investment management companies.

e) insurance companies.





2) credit institution:




An undertaking whose business is to receive deposits or other funds from the public, which must be repaid and to grant credits for its own account.



3) Investment Company:




A legal or natural person, whose business consists in providing investment services.



4) investment services:




In annex 4, section A, point 1. 1-8, in connection with the activities listed in annex 5, nr. 1-10, listed instruments.



5) management company:




A company whose business consists in the administration of undertakings for collective investment in transferable securities (UCITS).



6) financial institution:




An undertaking which is not a credit institution, and if the main business of which is to acquire holdings or to carry on one or more of the annex 2, nr. 2-12, specified activities.



7) Parent company:




A company that







a) holds a majority of voting rights of a company,

b) is a shareholder or stockholder or owner other shares of a company's equity (corporate member) and has the right to appoint or remove a majority of the undertaking's administrative, managerial or equivalent governing body,

(c)) are a corporate member and has the right to exercise a dominant influence over the company on the basis of the articles of association or agreement with this, moreover,

d) is business participant and pursuant to agreement with other shareholders, shareholders or owners of the shares of the equity is in possession of the majority of the voting rights in the company or

e) has a shareholding in a company and exercises a dominant influence over this.





8) subsidiary:




A company with which the parent company directly or indirectly has one of those in the No. 7 mentioned connections.



9) Group:




A parent undertaking and its subsidiary undertakings.



10) Financial holding company:





(a)) A parent undertaking which is not a financial company, in a business where at least one of the subsidiaries in the group is a financial undertaking, and where at least 40 percent of the balance sheet total of the Group and the parent's associated companies relate to the financial sector regulation. However, paragraph 8, or

(b)) a parent undertaking whose activity exclusively or principally consists in owning shares in subsidiaries, which are financial firms or financial institutions, and where at least one subsidiary company is a financial company.





11) Pengeinstitutholdingvirksomhed:




A parent company whose business consists wholly or mainly in owning shares in subsidiaries that are credit institutions or financial institutions, and where the Group's principal activity is to operate banking business.



12) Realkreditholdingvirksomhed:




A parent company whose business consists wholly or mainly in owning shares in subsidiaries that are credit institutions or financial institutions, and where the Group's principal activity is to operate mortgage company.



13) Fondsmæglerholdingvirksomhed:




A parent company whose business consists wholly or mainly in owning shares in subsidiaries that are credit institutions or financial institutions, and where the Group's principal activity is to operate stock brokerage.



14) Investeringsforvaltningsholdingvirksomhed:




A parent company whose business consists wholly or mainly in owning shares in subsidiaries that are credit institutions or financial institutions, and where the Group's principal activity is to operate the investment management business.



15) Associate:




An undertaking in which a financial entity and its subsidiaries possess capital shares and exercises a significant influence on its operational and financial management, but which is not a subsidiary of the financial business. A financial entity and its subsidiaries shall be presumed to exercise a significant influence, if together they possess 20 percent or more of the voting rights.



16) involvement:




The sum of the balances that involves a credit risk for the company.



17) close links:





(a) direct or indirect relations) of the in no. 9 specified species,

b) holdings, meaning a company's direct or indirect holding of 20 per cent or more of the voting rights or capital of an undertaking, or

c) several undertakings or persons common connection, see. (a) with a business.





18) Zone A-countries:




Member countries of the EUROPEAN UNION, other countries which are full members of the Organisation for Economic Cooperation and development (OECD), as well as other countries which have concluded special lending arrangements with The International Monetary Fund (IMF) and is associated with the General Loan Agreement. A country that, as a result of the lack of ability to reschedule its foreign debt, excluded from zone A for a period of 5 years.



19) Branch:




A place of business which forms a legally dependent part of a credit institution, management company, investment firm or insurance company, and carrying on business for which the company has permission to.



20) multilateral trading facility:




A multilateral trading system (with the exception of regulated markets) that within the system, and after the latter's mandatory rules establishes various third-party interest in the buying and selling of goods listed in annex 5, nr. 1-10, instruments listed in connection with each other in such a way that the conclusion of an agreement on the transfer.



21) Captivegenforsikringsselskab:




An insurance company, whose activities are limited to the reinsurance of insurance risks in the group to which the company is a part of, when the group does not contain any other insurance companies.







(2). By capital interests means a company's direct or indirect holding of 20 per cent or more of the voting rights or capital of an undertaking.

(3). By a qualified share means any direct or indirect holding of at least 10 per cent of the capital or of the voting rights, or a share, which makes it possible to exercise a significant influence over the management of the financial company or financial holding company.

(4). By equity securities means shares in the public limited-liability companies (shares), in private limited companies (shares) as well as in other corporate equity.

(5). In determining voting rights and rights to appoint or dismiss members of governing bodies included rights held by the parent company as well as its subsidiaries.

(6). In determining voting rights in the subsidiary undertaking disregarding voting rights attaching to the shares held by the company itself or its subsidiaries.

(7). In this Act shall mean:





1) Solvency requirements, the minimum capital requirement and the solvency requirement in accordance with sections 124 and 125.

2) Capital requirements in accordance with section 127.

3) capital base, in accordance with section 128.

4) core capital in accordance with §§ 129-131.

5) Supplementary capital in accordance with section 135.

6) Hybrid core capital in accordance with § 132.

7) equity loan in accordance with section 136.

8) special bonus provisions in accordance with §§ 134 and 138.

9) Member accounts in accordance with section 133.

10) risk-weighted items in accordance with section 142.






(8). A parent company that has been covered by paragraph 1, nr. 10 (a), shall be deemed to be continued as a financial holding company, if at least 35 per cent of the balance sheet total of the Group and the parent's associated companies relate to the financial sector. 1. paragraph shall cease to apply if the balance sheet total referred to in 1. item has been under 40% 3 years in a row.

§ 6. The Minister for economic and business affairs shall lay down detailed rules on the application of digital communication, including electronic signature, by the exchange of information under this law between citizens and businesses on the one hand and the public administration, on the other hand, as well as on the retention of information.

Section II

Permission, exclusivity, business area and foreign institutions

Chapter 3

Permission, exclusive rights, etc.

Permission for financial institutions, mortgage companies, stock brokerage firms, investment management companies and insurance companies

§ 7. Companies engaged in business, which consists from the public to receive deposits or other repayable funds as well as to grant credits for its own account, other than on the basis of the issue of mortgage bonds, see. § 8, paragraph 3, shall be authorised as a financial institution. Financial institutions shall only engage in activity as mentioned in annex 1 as well as business after §§ 24-26.

(2). Financial institutions may be authorized under section 9 (1) for the purposes of annex 4, section A, point 1. 1 and 4, the said activities.

(3). Financial institutions, the State, Danmarks Nationalbank, foreign credit institutions which meet the conditions laid down in article 1, paragraph 3, and § § 30 or 31, issuers of electronic money, and sparevirksomheder has the exclusive right to public to receive deposits or other repayable funds. Mortgage companies, Danmarks skibskreditfond and municipal Credit may, however, receive other repayable funds. Companies that do not receive deposits from the public, can receive other repayable funds, provided such company or loan company is not an essential part of the undertaking's activities.

(4). Financial institutions, State and foreign credit institutions which meet the conditions laid down in article 1, paragraph 3, and § § 30 or 31, have the exclusive right to contact to the public to offer themselves as recipients of deposits.

(5). Financial institutions shall enjoy the exclusive right to use the term ' bank ', respectively ' savings bank ' or ' cooperative ' in their name. Other companies, except banks, established by law, must not use names or designations for their activities, which are apt to induce the impression that they are financial institutions. A financial institution shall not denote its business in a manner that is suitable to induce the impression that it is the country's national bank.

(6). Money institutions shall use, respectively, the term ' bank ', ' savings bank ' or ' cooperative ' in their name, without prejudice. However, paragraph 7. The Danish public companies act § 153, paragraphs 2 to 6 shall apply mutatis mutandis to savings banks and cooperative banks.

(7). A public limited company pursuant to the rules laid down in §§ 207-213 takes over a cooperative, an Association of cooperative banks or a savings bank, is entitled to describe itself as andelskasse respectively savings bank, with the exception that the word ' Corporation ' or derivatives formed abbreviations should be added to the name.

(8). A company applying for authorization in accordance with paragraph 1, shall have a share capital, which at least represents an amount equivalent to 8 million. euro.

§ 8. Companies that provide loans against mortgages registered on the basis of the issue of mortgage bonds, must have permissions as mortgage lender. Mortgage companies may only engage in activity as referred to in annex 3 as well as business after §§ 24-26.

(2). Mortgage companies may be authorized under section 9 (1), to exercise the powers in annex 4, section A, point 1. 1 and 2, the said activities, as far as mortgage backed securities and derivative instruments.

(3). Mortgage companies and foreign credit institutions which meet the conditions of the law on mortgages and mortgage bonds, etc., have the exclusive right to issue mortgage bonds.

(4). Securities other than mortgage bonds do not carry this designation or designations that are apt to induce the impression that they are mortgage backed securities.

(5). Mortgage companies have the exclusive right to use terms such as ' mortgage lender ', ' mortgage Ltd. ', ' Credit Union ' or ' mortgage fund ' in their name. Municipality Credit may, however, continue to use the term Credit Association of municipalities in Denmark. Other companies may not use the names or descriptions of their activities, which are apt to induce the impression that they are mortgage companies.

(6). Mortgage companies, which are transformed into joint stock companies, and which so far has used terms such as ' Credit Union ', ' mortgage fund ' or ' real loan fund ' in their name, to add the word ' Corporation ' or derivatives formed abbreviations after the name.

(7). A company applying for authorization in accordance with paragraph 1, shall have a share capital, which at least represents an amount equivalent to 8 million. euro.

§ 9. Companies, who for a third party carries out activities as mentioned in annex 4, section A, securities traders and must have permissions as securities traders, see. However, section 7, paragraph 1, and article 8, paragraph 1. Securities traders can also exercise one or more of those in annex 4, section B, the said activities. Permitted to exercise one or more of those in annex 4, section B, mentioned activities may be granted only in association with permission in annex 4, section A, the said activities. The authorisation shall specify the activities listed in annex 4, which consent shall cover.

(2). Securities traders, who do not have permission according to § 7 paragraph 1, § 8, paragraph 1, or article 10, paragraph 1, are stockbroking companies. Stockbroking companies are only allowed to carry out activities as mentioned in annex 4.

(3). Securities traders, Danmarks Nationalbank, the Danish Agency and foreign credit institutions and investment firms, which satisfies the conditions laid down in article 1, paragraph 3, and articles 30, 31 or 33, has the exclusive right to perform the in annex 4, section A, article with the instruments listed in annex 5 (securities) and with the law on securities trading, etc. § 2, nr. 12, listed securities on commercial basis to third parties, see. However, section 7, paragraph 1, and article 8, paragraph 1. Securities traders and foreign credit institutions and investment firms covered by article 1, paragraph 3, and fulfils the conditions set out in sections 30, 31 or 33, also have the exclusive right to disseminate and carry out foreign exchange spot transactions in investment purposes in order that investors can achieve profit for the change of course on the currency on commercial basis with third parties.

(4). The provision in paragraph 3 shall not apply to an enterprise's execution of trades with and dissemination of securities which the company itself issuing.

(5). Securities traders, who do not have permission according to § 7 paragraph 1, § 8, paragraph 1, or article 10, paragraph 1, have the exclusive right to use the name ' stockbroking company ' in their name. Other companies may not use the names or descriptions of their activities, which are apt to induce the impression that they are stockbroking companies.

(6). Stockbroking companies that are members of a regulated market, shall enjoy the exclusive right to use the name ' brokerage company «and can apply this term in their name instead of ' stockbroking company '. Other companies may not use the names or designations for their business that is apt to induce the impression that they are brokerage firms.

(7). Stockbroking companies will use the term ' stockbroking company ' or ' brokerage company ' in their name.

(8). A company applying for authorization in accordance with paragraph 1 and which do not have a licence under section 7, paragraph 1, article 8, paragraph 1, or article 10, paragraph 1, must have a share capital, which at least represents an amount equivalent to 1 million. the euro, if the stockbroking company wants to become a member of a regulated market, a central securities depository or a clearing centre where the company participates in clearing and settlement, or want to perform one or more of those in annex 4, section A, point 1. 3, 6, 8 and 9, and section B, nr. referred services. Other companies applying for permission in accordance with paragraph 1, shall have a share capital, which at least represents an amount equal to 0.3 million. euro.

(9). Operators of regulated markets in this country, in other countries within the European Union or in countries with which the community has entered into an agreement on financial matters, may be authorised to operate multilateral trading facilities. Operators of regulated markets, multilateral trading facilities, the driver must have a share capital of 1 million. euro.

Paragraph 10. Securities traders and operators of regulated markets, who want to drive a multilateral trading facility as an alternative marketplace, must give notice to the Danish financial supervisory authority before the commencement of the operation of the alternative marketplace. Multilateral trading facilities, which have been in operation in such a message can not subsequently operated as alternative marketplaces.

Paragraph 11. The Danish financial supervisory authority shall lay down detailed rules concerning the physical and legal persons in addition to those of paragraphs 2 and 3 included that can offer services included in annex 4.

§ 10. Companies engaged in activities as mentioned in annex 6, investment management companies, and must have permissions as an investment management companies.


(2). Investment management companies may be authorized under section 9 (1) for the purposes of annex 4, section A, point 1. 4, 5 and 9, and the activities referred to in subparagraph (B), no. 4, the said activities. In annex 4, section A, point 1. 4 and 5 can be performed with the activities referred to in annex 5, nr. 1-3, instruments listed and with financial futures and equivalent cash-settled instruments, forward rate agreements (FRAs), interest rate and currency swaps and swaps on stocks and stock indexes, options to acquire or dispose of an instrument referred to in this paragraph, and options in the stock and bond indexes as well as options on currency and on interest rates. In annex 4, section A, point 1. 9, referred to activity may only be performed with the in annex 5, nr. 3, instruments listed. Permission to carry out activities as mentioned in annex 4, section A, point 1. 5 and 9, may be granted only in association with permission for it in annex 4, section A, point 1. 4, referred to activity. The authorisation shall specify the activities listed in annex 4, which consent shall cover.

(3). The following paragraph 2 permitted activities include, however, does not have permissions to perform these with funds belonging to companies, apart from mutual funds, specialist associations, professional associations, approved fåmandsforeninger or hedge funds, there is a group connected with the investment management company.

(4). Investment management companies have the exclusive right to manage mutual funds, specialist associations, professional associations, fåmandsforeninger and hedge funds, which are approved or registered in accordance with the Act on investment associations and special associations and other collective investment schemes, etc.

(5). An investment management company must have a share capital, which at least represents an amount equal to the value of 0.3 mio. euro. However, an investment management company, there must be a member of a regulated market or store and manage the in annex 5, nr. 3, instruments listed, including being a member of a central securities depository or Clearinghouse, in which the company participates in clearing and settlement, have a share capital, which at least represents an amount equal to the value of EUR 1 million. euro.

§ 11. Undertakings engaged in the insurance business, including reinsurance, must have permissions as an insurance company or captivegenforsikringsselskab, see. However, sections 30 and 31. The authorisation shall specify the assets set out in annexes 7 and 8, which consent shall cover. Insurance companies are only allowed to engage in activity as referred to in annex 7 and 8 as well as business after §§ 24-26 and 29. Similarly, foreign insurance companies covered by article 1, paragraph 3, and fulfils the conditions set out in sections 30 or 31.

(2). The provision of paragraph 1 shall not apply to the following types of businesses:





1) institutions, the aim of which is to ensure pension prior to employment in a private enterprise, including an insurance company, or prior to employment in such companies within the same group.

2) Burial boxes and cremation associations.

3) under State supervision related recognised unemployment funds, etc.

4) War Insurance Department in accordance with the law on insurance of ships of war.

5) War Insurance Federation, covered by the law on war insurance of real estate and movable property.

6) companies whose purpose is limited to provide roadside assistance in connection with an accident or injury happened here in the country or abroad, where aid abroad is granted by an equivalent foreign company pursuant to an agreement of reciprocity.

7) companies that provide only assistance within a limited area, and whose annual premium income does not exceed a fixed amount by the FSA.

8) Denmark Falck a/s.

9) Reinsurance in accordance with the Act on Danish export credit fund of extraordinary risks associated with export.

10) arbejdsmarkedets tillægspension and labour market occupational disease insurance.

11) Maternity funds.





(3). Companies that have permissions as an insurance company, has the exclusive right to use the name ' insurance company ', ' mutual company ', ' captivegenforsikringsselskab ' or ' pension fund ' in their name. Other companies may not use the names or descriptions of their activities, which are apt to induce the impression that they are insurance companies or pension funds.

(4). Insurance companies are required to use a name that clearly indicates the company's property by the insurance company. Mutual insurance companies are obliged to in their name to use the name ' mutual company ' or derivatives formed abbreviations or otherwise clearly indicate their capacity as mutual company. Captives are required to use the name ' captivegenforsikringsselskab '. Lateral pension funds are obliged to in their name to indicate clearly that they are an institution. The Danish public companies act § 153, paragraphs 2 to 6 shall apply mutatis mutandis to mutual insurance companies and lateral pension funds.

(5). A company applying for authorization in accordance with paragraph 1, must have a capital base, which at least represents an amount equal to it in § 126 said.

§ 12. Banks, building societies, stockbroking firms and investment management companies shall be public limited liability companies. Cooperative banks should be cooperatives, see. However, section 207. Savings banks shall be self-governing institutions, see. However, section 207. Insurance companies must be public limited liability companies, mutuals or lateral pension funds. Captives must be public limited liability companies.

§ 13. Intangible assets may not be used for payment of the share capital in financial companies.

(2). In banks, stockbroking firms and investment management companies can sharing of the share capital of classes of shares with different voting power does not take place.

§ 14. The Danish financial supervisory authority authorisation when





1) the requirements of sections 7, 8, 9, 10 or 11 are met,

2) the members of the applicant's Board of Directors and Executive Board meets the requirements of § 64,

3) owners of qualified shares, see. § 5, paragraph 3, will not discourage a sound and prudent management of the financial company or financial holding company,

4) in the absence of close links, see. § 5 (1) (8). 17, between the applicant and other companies or persons which might complicate the exercise of supervisory tasks,

5) the law of a country outside the European Union, which the community has not concluded an agreement with the financial area on an undertaking or a person with whom the applicant has close links, will not be able to hinder the performance of the tasks of the Danish FSA

6) applicant's business procedures and administrative matters is sound,

7) applicant has head office and registered office in Denmark and

8) paragraph 2 or §§ 18-21 and paragraph 2, 1. paragraph are met.





(2). An application for authorisation in accordance with §§ 7-11 must contain the information necessary for the use of the FSA assessment of whether the conditions in paragraph 1 are fulfilled, including information on the amount of the qualified shares and the company's organization. The application must also contain information about the nature of the proposed business.

(3). The Danish financial supervisory authority shall refuse an application for a permit must be justified and notified to the applicant not later than 6 months after the date of receipt, or, if the application is incomplete, within six months after the applicant has submitted the information required to make the decision. There should in any case be decided no later than 12 months after receipt. The FSA has not within 6 months after receipt of a complete application for a permit decision, the company may refer the matter to the courts.

(4). In order to comply with a provision of suspension from the Commission in accordance with the directives in the financial field can the FSA suspended the processing of applications for permission in accordance with §§ 7-11 and 16 from applicants who directly or indirectly owned by companies domiciled in a country outside the European Union, which the community has not concluded an agreement with the financial area.

(5). The Danish financial supervisory authority may refuse to give consent in accordance with paragraph 1, if the purpose of placing the head office and registered office in Denmark alone is to avoid being subject to the legislation of the country where the majority of the applicant's customers are located.

(6). For financial undertakings covered by §§ 7-9 and section 10, paragraph 2, is also subject to authorisation firm connected to the guarantee fund for depositors and investors.

§ 15. When the Danish financial supervisory authority has granted permission under section 14, the Danish Commerce and companies agency make the necessary registrations.

(2). For the notification for registration, without prejudice. paragraph 1, and for the notification of amendments to the articles of the financial business must submit a dated copy of the articles of association with the complete new wording to the Danish Commerce and companies Agency, that forwards a copy to the Danish FSA.

(3). By the granting of an authorisation or changes in authorization for insurance companies shall be forwarded by the Danish financial supervisory authority at the same time copy thereof to the Danish Commerce and companies Agency. The Danish Commerce and companies Agency carries out registration of the date of the authorization.


(4). For savings banks and cooperative banks apply the Danish public companies Act provisions on notification and registration, etc. accordingly.

§ 16. The Danish financial supervisory authority may allow financial institutions, mortgage companies, stock brokerage firms and investment management companies can provide services with instruments and contracts covered by the Fund Council decision pursuant to article 2, paragraph 1, no. 12 of the law on securities trading etc.

section 16 (a). The Danish financial supervisory authority may allow banks and building societies to issue covered bonds.

(2). Banks and mortgage credit institutions authorised in accordance with paragraph 1 and ship finansieringsinstituttet with permission under section 2 c of the law on a ship's financial has the exclusive right to issue covered bonds. Mortgage credit institutions authorised in accordance with paragraph 1 also has the exclusive right to issue covered bonds.

(3). Debt securities issued by credit institutions authorised in another country within the European Union or a country with which the community has entered into an agreement on the financial area, can also be termed special covered bonds, if they fulfil the conditions laid down in annex VI, part 1, points 68-71, in the directive relating to the taking up and pursuit of the business of credit institutions.

(4). FSA sets out detailed rules on





1) the conditions under which a permit may be obtained in accordance with paragraph 1, and

2) what are the conditions for bonds issued by banks and mortgage companies can achieve and maintain the designation covered bonds or covered mortgage bonds.





section 16 (b). A financial institution or a mortgage lender can finance loans with a mortgage by special covered bonds or covered mortgage bonds issued by another financial institution or mortgage lender.

(2). Issuance of covered bonds or covered mortgage bonds, pursuant to paragraph 1 shall be subject to approval by the FSA.

§ 16 c. If a loan must be financed by another money institution or mortgage institution issuing covered bonds or covered mortgage bonds, this must be stated in the loan agreement between the lending financial institution or mortgage lender and borrower. Furthermore, it should be stated in the loan agreement, that information about the borrower may be transmitted between the lending institution and the issuing Department, see. § 120 (b).

§ 16 (d). If a financial institution or a mortgage lender makes a loan secured by a mortgage on the basis of another money institution or mortgage institution issuing covered bonds or covered mortgage bonds, loan and related mortgage letter entrusted to owning to the issuing institution.

(2). Transfer in accordance with paragraph 1 may not be declared void after the Bankruptcy Act §§ 67, 70 or 72. Marriage annulment can be done according to the rules, if the transfer is not specifically emerged as extraordinary.

§ 16 e. If a financial institution or a mortgage lender makes a loan secured by a mortgage on the basis of another money institution or mortgage institution issuing covered bonds or covered mortgage bonds, the borrower can pay with discharge to the lending financial institution or mortgage lender unless the borrower receives separate communication on different from the issuing financial institution or mortgage lender.

section 16 (f). The lending financial institution or mortgage institution shall keep incoming payments, which pertain to loans secured by a mortgage on the basis of another money institution or mortgage institution issuing covered bonds or covered mortgage bonds, separated from the Foundation's other resources.

(2). The lending financial institution or mortgage lender must maintain continuous control with the separation.

(3). The lending financial institution or mortgage lender must after a pre-arranged plan settle received payments to the issuing institution.

(4). FSA sets out detailed rules on





1) which enable the lending financial institution or mortgage lender can place received payments until settlement takes place, and

2) the lending of money institution or mortgage institution's control of separation and settlement to the issuing financial institution or mortgage lender.





§ 16 g. By the lending institution or mortgage institution bankruptcy money accrue payments subject to section 16 (f) of the basic regulation. section 16 (b), paragraph 1, as the lending financial institution or mortgage lender receives, and which have not yet been settled, the issuing financial institution or mortgage lender outside of bankruptcy.

§ 17. FSA sets out rules as to which instruments and contracts in addition to the instruments and contracts referred to in annex 5, financial firms with a permit pursuant to section 7, paragraph 1, or article 9, paragraph 1, may perform services.

Special rules for insurance companies concerning notification to the Danish financial supervisory authority

§ 18. Application for a permit shall contain one of the insurance company prepared business plan of the company for which the insurer intends to drive. FSA sets out rules about the information that the business plan must include, on the requirements to the reporting form and layout and about the number of years for which the plan must be drawn up.

(2). Application for authorisation for class 10 (liability insurance for land vehicles) must be accompanied by information as to who the company will appoint as a claims representative in each of the other countries of the European Union.

(3). A permit must contain information about the insurance business, as the company must exercise. FSA sets out detailed provisions on the authorisation and the content of the application as a whole.

§ 19. Life insurance company shall not, in the same company combined with other insurance company. Life insurance companies may, however, in addition to life assurance company carry on business within classes 1 and 2 of the basic regulation. Annex 7. Furthermore, the reinsurance of life insurance and other insurance carried on by the same company.

(2). FSA sets out rules on the extent to which life insurance companies ' risks under classes 1 and 2 of the basic regulation. Annex 7, subject to the provisions of this law, special rules for life assurance.

(3). The Danish financial supervisory authority may allow a non-life insurance company through a branch operating in a country within the European Union or in a country with which the community has entered into an agreement on the financial area, the exercise of insurance forms, which are in accordance with the law of the country in question, irrespective of the fact that this is not allowed in Denmark.

§ 20. The technical basis for life assurance, etc. shall be reported to the FSA at the latest at the same time as the Foundation, etc. are taken into use. The same applies to any subsequent change in the mentioned conditions. The notification shall contain an indication of the





1) the insurance forms, which the company intends to use,

2) the basis for calculation of insurance premiums, surrender values and fripolicer,

3) rules for the calculation and allocation of the realized outcome to policy-holders and other eligible for insurance contracts,

4) the company's principles of reinsurance, including thresholds,

5) rules, when both the insurance seeker which policyholders must provide medical information for the assessment of the risk situation,

6) the basis for calculation of the mathematical provisions for the individual insurance contract as well as for the company as a whole and

7) rules, whereby pension schemes with ongoing payments sign or agreed that mandatory schemes in an insurance company or pension fund can be transferred from or to the company in connection with the transition to other employment or in connection with acquisitions or business transformation.





(2). Companies that do not draw direct life insurance, shall not carry out the notification of the technical bases, etc. for life assurance.

(3). The Danish financial supervisory authority may lay down detailed rules concerning the matters referred to in paragraph 1, including whether and to what extent the reviews must be publicly available.

§ 21. The under section 20 (1). 1-5, declared conditions must be safe and fair to the individual policyholder and other eligible for insurance contracts.

(2). The notified rules for the calculation and distribution of the realized outcome, without prejudice. Article 20, paragraph 1, no. 3, must be precise and clear and must lead to a fair distribution.

(3). Premiums for the newly issued insurance policies must be sufficient to allow the insurance company can meet all its obligations, so that there will not be a need for systematic and continuous supply of other funds.


(4). The calculation elements (interest rates, cost rates, and statistical elements) taken into account in the calculation of insurance premiums, surrender values and fripolicer, must be chosen with care. The calculation elements taken into account in the calculation of life assurance provisions must be laid down in such a way that they comply with the rules issued under section 196.

(5). The Danish financial supervisory authority may lay down detailed rules concerning the mentioned in paragraph 1-4 requirements.

(6). If the requirements of paragraphs 1 to 4, or in the rules issued pursuant to the provisions of this law are not met, the Danish financial supervisory authority to order life insurance company to make the necessary changes in the pursuant to § 20-pending conditions within a period to be set by the FSA. The provisions of section 249 applies mutatis mutandis.

§ 22. Draw that notwithstanding the provisions of §§ 11-14 insurance, prior permission is given and the registration has been made, shall be liable, on the insurer's behalf has taken out insurance policies or are complicit, jointly and severally liable for the fulfilment of the agreement. The company recognises obligations no later than 4 weeks after registration, cancelled their liens, provided that the policyholder's safety is not thereby materially impaired. Agreements of that nature is prior to the company's recognition of the commitments are not binding on the insured person.

(2). The provisions of §§ 11-14 does not preclude that, with a view to the formation of a mutual insurance company can be longitude, and of members, provided that the insurance liability commences and the prize not be increased before the company is registered. Longitude, by a member of a mutual company in accordance with 1. points are only binding, if the company is notified to the Danish Commerce and companies agency not later than 1 year after written with community residents. Are denied registration, cancelled the agreement.

Special rules for mutual insurance companies relating to the formation, etc.

§ 23. The Danish public companies Act § § 3-13 shall with the necessary adjustments by analogy to mutual insurance companies and lateral pension funds. In addition, the Danish public companies Act provisions on notification and registration, etc. by analogy.

(2). In the case of mutual insurance companies and lateral pension funds find referred to in paragraph 1, the provisions of the companies Act relating to shareholders apply to guarantors and the provisions on share capital and shares the use of guarantee capital and guarantees shares with necessary modifications.

(3). Decisions pursuant to the Danish public companies Act § 9, paragraph 2, must be upheld by all who are eligible to vote, according to the draft document of incorporation or bylaws. Consent pursuant to the Danish public companies Act § 10 (2), (3). paragraph, to be given by all the founders and all who are eligible to vote, according to the draft document of incorporation or bylaws.

Chapter 4

Other permitted activities

General rules on other permitted activities

§ 24. Banks, mortgage companies and insurance companies can operate, there are ancillary to the company that has been authorized. The Danish financial supervisory authority may provide that the ancillary activities must be carried out by another company.

(2). Banks, mortgage companies and insurance companies must through subsidiaries operate other financial business.

§ 25. Banks, mortgage companies and insurance companies can temporarily drive the other company to security or the settlement of prior underwriting exposures or with regard to participation in the restructuring of businesses. The financial company must notify the financial supervisory authority to that effect.

section 26. Banks, building societies, stockbroking firms and insurance companies can regardless of § § 7 to 9, 11, 24 and 25 in fellowship with other drive other business, if





1 financial company) not, directly or indirectly, a dominant influence on the company,

2) the financial company does not operate the company with financial companies that are part of the business with the financial company or, in the case of insurance companies, in the administrative community with the insurer, and

3) the company shall be exercised in a different company than the financial business.





(2). If a financial company or a corporate acquisition, merger, etc. is going to drive the other company in contravention of section 7, paragraph 1, article 8, paragraph 1, section 9, paragraph 1, article 11, paragraph 1, or article 26, paragraph 1, the Danish financial supervisory authority may specify a time for the sale of the other company, if an immediate divestment would be associated with an economic loss.

Special rules for stockbroking companies relating to subsidiaries

§ 27. Stockbroking companies are not allowed to have subsidiaries, unless these are stockbroking companies.

Special rules for investment management companies relating to subsidiaries

section 28. Investment management companies are not allowed to have subsidiaries, unless these are investment management companies.

Special rules for insurance companies on other permitted activities

section 29. In addition to activities covered by §§ 24-26 must insurance companies drive the following activities:





1) agency business for insurance companies and of other companies that are under FSA oversight.

2) Construction, ownership and operation of real estate as permanent placement of funds.





(2). Life insurance companies can build housing with resale in mind, when the construction is obtained the commitment of a share of endowment under section 1 (c) or rules laid down pursuant to section 1, paragraph 4, of the Act on promotion of private rental housing, and at least half of the residential apartments are leased for year-round habitation.

(3). In the case of investments in accordance with paragraph 2, the share of residential apartments being built for the purpose of resale, does not have a value that exceeds 1 per cent of the technical provisions.

(4). Life insurance companies and lateral pension funds can create and manage separate SP-accounts.

Chapter 5

Foreign companies

General rules on foreign companies

section 30. A foreign company authorized to carry on the in §§ 7-11 mentioned the company in another country within the European Union or in a country with which the community has entered into an agreement on financial matters, can begin to carry on business in Denmark through a branch 2 months after the FSA has received notice from the supervisory authorities of the home Member State without prejudice to article. paragraphs 4 to 8. The branch may exercise the powers set out in annex 2 to 4, 7 and 8 mentioned activities, provided that they are covered by the company's authorised in their home Member State.

(2). The issuance of mortgage bonds, see. Annex 3, can only be carried out by credit institutions which meet the conditions of the law on mortgages and mortgage bonds, etc.

(3). The company is a management company, see. § 5 (1) (8). 5, the branch may





1) manage UCITS and other collective investment undertakings are authorised in their home Member State, and

2) exercise in annex 4, section A, point 1. 4, 5 and 9, the said activities, provided that they are covered by the management company authorised in its home Member State.





(4). The Danish financial supervisory authority must obtain the following information from your home country's supervisory authorities:





1) A description of the branch's business, including information about the Organization and the planned activities,

2) a statement that the planned activities are covered by the company's authorised in its home Member State,

3) branch address and

4) the names of the branch's management or general agent of the basic regulation. section 35.





(5). The company is a credit institution, the financial supervisory authority also obtain information about the size of the company's basic capital and solvency ratios and information about a possible guarantee scheme in their home Member State comprehensive branch's depositors or investors.

(6). The company is an investment company or a management company, see. § 5 (1) (8). 5, the Danish financial supervisory authority also obtain information about a possible guarantee scheme in their home Member State, which includes the branch's investors.

(7). The company is an insurance company, the Danish financial supervisory authority also obtain the solvency certificate.

(8). If the branch to cover risks in class 10 of the basic regulation. Annex 7, nr. 10, other than carrier's liability, the financial supervisory authority of the home Member State supervisory authorities also require a statement that the branch is a member of the Danish Association of International motor vehicle insurance. For those branches insurance to cover the risks referred to is valid road traffic law § § 105-108 and 110-115.

(9). The company shall notify the financial supervision any change referred to in paragraph 4, no. 1-4, and paragraph 5-8 said conditions at the latest 1 month before the change is made. If it has not been possible to notify the FSA the change not later than 1 month before the change is made, the communication happen as soon as possible. The company must not, however, inform the FSA changes in companies ' capital base and solvency ratios.

Paragraph 10. The Danish public companies Act provisions relating to branches of foreign corporations apply to the branches referred to in paragraph 1.


Paragraph 11. Branches in this country by credit institutions and investment firms which are authorised to provide investment services in a country within the European Union or in a country with which the community has entered into an agreement on financial matters, and which carry out such activity in this country, can use tied agents.

section 31. A foreign company authorized to carry on the in §§ 7-11 mentioned the company in another country within the European Union or in a country with which the community has entered into an agreement on financial matters, can start providing services here in the country, when the Danish financial supervisory authority has received notice from the supervisory authorities of the home Member State. The foreign company may exercise the powers set out in annex 2 to 4, 7 and 8 mentioned activities when the supervisory authorities of the home Member State has stated that these are covered by the company's authorised in their home Member State. The foreign company is an insurance company, the Danish financial supervisory authority also have received in accordance with paragraph 5 and 6 referred to information from supervisory authorities of the home Member State. The foreign company is a management company, the Danish financial supervisory authority from the supervisory authorities of the home Member State receiving a business plan of the management company's proposed tasks and services, see. paragraph 3, and details of the relevant guarantee schemes, aimed at protecting investors.

(2). The issuance of mortgage bonds, see. Annex 3, can only be carried out by credit institutions which meet the conditions of the law on mortgages and mortgage bonds, etc.

(3). The company is a management company, the company may





1) manage UCITS and other collective investment undertakings are authorised in their home Member State, and

2) exercise in annex 4, section A, point 1. 4, 5 and 9, the said activities, provided that they are covered by the management company authorised in its home Member State.





(4). With the procedure referred to in paragraph 1 shall apply mutatis mutandis where a management company shall delegate the marketing of units in the host country to a financial company that is authorized under section 9 (1) or section 10, paragraph 1.

(5). The foreign company is an insurance company, must obtain the following information from the Danish financial supervisory authority of the home Member State supervisory authorities:





1) A solvency certificate and

2) an indication of the classes, groups of classes and any ancillary risks which the insurer intends to cover in this country.





(6). If the insurance company to cover risks in class 10 of the basic regulation. Annex 7, nr. 10, other than carrier's liability, should the FSA from the insurance company require indicated the name and address of the representative referred to in paragraph 7, as well as a declaration that the insurance company is a member of the Danish Association of International motor vehicle insurance. For those types of insurance to cover the risks referred to is valid road traffic law § § 105 ‑ 108 and 110 ‑ 115.

(7). The insurance company shall also, insofar as it covers risks in class 10 of the basic regulation. Annex 7, nr. 10, other than carrier's liability, appoint a representative resident or established in this country. The representative must have the power to collect all necessary information in relation to claims, and to represent the insurance undertaking in relation to injured persons, who can make claims, including with regard to the payment of such claims.

(8). The representative referred to in article 6. paragraph 7, shall also have the powers to represent the insurance undertaking in relation to the authorities as well as during legal proceedings against the insurer in connection with the requirements referred to in paragraph 7.

(9). The appointment of the representative shall not be considered in itself as the creation of an established place of business, see. § 34.

Paragraph 10. The insurer shall notify the financial supervision any modification referred to in paragraph 5, no. 2, and (1) 2. point, said conditions at the latest at the same time as the change is made.

Paragraph 11. An operator of a regulated market that has permission to operate multilateral trading facilities in another country within the European Union or in a country with which the community has entered into an agreement on financial matters, can let remote users or remote participant in this country get access to participate in and use the multilateral trading facility systems.

section 32. A foreign company can take advantage of the same name, which the company uses in its home Member State. There is a risk of confusion with another in this country used name, the Danish Commerce and companies agency require an explanatory addition.

Special rules for foreign credit institutions and investment firms

section 33. A foreign credit institution and an investment firm authorised in a country outside the European Union, which the community has not concluded an agreement with the financial area, must have the permission of the FSA to perform services with securities trading in Denmark.

(2). The Danish financial supervisory authority may refuse authorisation if the laws of the country where the credit institution and an investment firm authorized and regulated, will complicate the tasks of the Danish FSA.

(3). The Danish financial supervisory authority shall lay down detailed rules on the authorisation procedure, including what documentation is to be sent to the Danish financial supervisory authority in connection with the application.

Special rules for foreign insurance companies

§ 34. By an insurance undertaking establishment shall mean:





1) The place of origin, set out in the staff regulations.

2) a branch.

3) an Office, headed by a foreign insurance company's own staff.

4) an independent person who have a permanent authority to act on behalf of a foreign insurance company, along with a branch.





(2). If a foreign insurance company in this country is covered by paragraph 1, nr. 3 or 4, is considered to be the Office or person as well as the company's European branch and must meet the requirements of section 30 or the pursuant to § 1, paragraph 3, the conditions laid down.

section 35. The insurer must designate a general representative to lead the branch that cannot be drawn without general agent's involvement. General Agent must have the authority to bind the company as against third parties and to represent the insurer incidentally, including against the FSA and Erhvervs‑ the Danish Commerce and companies Agency, as well as during litigation against the company.

(2). If the agent does not act as the general in section 31, paragraph 6, referred to a representative of the insurance company's activities in class 10 of the basic regulation. Annex 7, nr. 10, other than carrier's liability, also applies to the rules in section 31, paragraph 6-9.

(3). An insurance undertaking may only have one general agent here in the country.

(4). General Agent can notify procuration to one or more agents.

(5). General agents must be adult persons and either have citizenship in a Member State of the European Union or in a country with which the community has entered into an agreement on the financial area. The Danish financial supervisory authority may, where the circumstances justify, grant derogations from the requirement naturalization.

(6). A here in the land of resident stock company, limited liability company or partnership may be general agent, if the general agent as its representative shall appoint a person meeting the conditions referred to in paragraph 5 to be general agent.

§ 35 a. by way of transfer of the whole or parts of one insurance stock character here in the country of a foreign insurance company in accordance with sections 30 and 31 to the Danish financial supervisory authority in cooperation with the host country authority publish a communication on the transfer of the Official Gazette and a nationwide daily newspaper. The transfer may not be invoked as a basis for raising the insurance contract.

§ 36. Foreign insurance companies covered by the rules in section 30, paragraph 1, and section 31, paragraph 1, that here in the country cover the risks referred to in annex 7, the FSA may be required to participate in schemes that guarantee the fulfillment of claims from insured persons or injured third parties, in so far as such arrangements shall apply mutatis mutandis to the Danish insurance companies.

section 37. The FSA can order insurance companies lay down detailed rules for the supply of services carried out from outside The European Union, which the community has not concluded an agreement with the financial area.

Danish financial companies ' activities abroad

section 38. A financial company that wants to establish a branch in another country, must announce this to the Danish financial supervisory authority together with the following information about the branch:





1) the country in which the branch is desired established,

2) a description of the branch's business, including information about the Organization, and the planned activities,

3) branch address,

4) the names of the branch's management and

5) for insurance companies, the name of the branch's authorised agent.






(2). Through the establishment of a branch in a country within the European Union or in a country with which the community has entered into an agreement in the financial field, FSA will forward the information referred to in paragraph 1 to the supervisory authorities of the host Member State. For banks and mortgage companies also forwarded a solvency ratio, and for insurance companies solvency certificate to the supervisory authorities of the host Member State. At the same time be sent stating that the planned activities are covered by the financial company's permission.

(3). Establishment of the branch in a country within the European Union or in a country with which the community has entered into an agreement on financial matters, and the company is a financial institution, mortgage lender, stockbroking firm or investment management company, the Danish financial supervisory authority also sends information about the investor and the deposit guarantee scheme for banks and building societies, as well as information about the company's capital base. For investment management companies and stockbroking companies shall inform the supervisory authorities of the host Member State financial supervisory authority changes in the information on the investor-and the deposit guarantee scheme.

(4). Information in accordance with paragraphs 2 and 3 shall be sent not later than 3 months after receipt of the information. At the same time with the submission shall inform the FSA the financial undertaking to that effect.

(5). The Danish financial supervisory authority may choose not to submit information in accordance with paragraphs 2 and 3, if there is reason to doubt that the administrative structure or the financial situation of the company is sound as a basis for the activities envisaged. FSA gives the company notice within 2 months after receipt of the information referred to in paragraph 1.

(6). The company shall notify the financial supervision, any change in the matters referred to in paragraph 1. The FSA should have received the notification no later than 1 month before the change is made. If it has not been possible to notify the FSA the change not later than 1 month before the change is made, the communication happen as soon as possible. The company is bound in the same way for the host country's regulatory authorities, if the host country is another country within the European Union or in countries with which the community has entered into an agreement on the financial area.

(7). A financial company must be authorised by the FSA to establish a branch in a country outside the European Union, which the community has not concluded an agreement with the financial area. If there is reason to doubt that the administrative structure or the financial situation of the company is sound as a basis for the activities envisaged, the FSA may refuse an application for authorisation.

(8). If the FSA has required that an insurance undertaking shall draw up a plan for the restoration of the basic regulation. § 248, the Danish financial supervisory authority not to disclose the solvency certificate.

§ 39. A financial company who wish to practise in the form of cross-border services in a country within the European Union or in a country with which the community has entered into an agreement on financial matters, should give the FSA notice indicating the country in which the company sought was begun, and what activities to be carried out. Insurance companies should also indicate what classes, groups of classes and possibly ancillary risks to be exercised. Investment management companies must also submit a business plan of the proposed tasks and services, as well as details of relevant schemes, aimed at protecting investors.

(2). The Danish financial supervisory authority forwards the notification referred to in paragraph 1 as well as a statement that the planned activities are covered by the company's permission, to the supervisory authorities of the host Member State not later than 1 month after the date of receipt of the notification referred to in paragraph 1. The company is an insurance company, sends the FSA also a solvency certificate to the supervisory authorities of the host Member State. The company is an investment management company, the Danish financial supervisory authority also sends information about investor and depositor guarantee scheme.

(3). Is the company a stockbroking company or an investment management company, the company is required to notify the financial supervisory authority and the host country's supervisory authorities of any change in the matters referred to in paragraph 1 no later than one month before the changes are made. If it has not been possible to notify the FSA the change not later than one month before the change is made, the communication happen as soon as possible.

(4). An investment management company that delegating the marketing of units in another country within the European Union or in a country with which the community has entered into an agreement on the financial area, to a third party, must apply it in section 31, paragraph 1, referred to procedure.

(5). If the FSA has required that an insurance undertaking shall draw up plan for recovery, see. § 248, the Danish financial supervisory authority not to disclose the solvency certificate.

(6). Operators of regulated markets, which are allowed to operate multilateral trading facilities in this country, without prejudice. § 9, paragraph 9 and who wish that remote users or remote participant in another country within the European Union or in a country with which the community has entered into an agreement on financial matters, will have access to participate in and use the multilateral trading facility systems, shall follow the procedure referred to in paragraph 1.

§ 40. A financial company that wants to establish a subsidiary company (which is a credit institution, an investment firm or an insurance company) in a country outside the European Union, which the community has not concluded an agreement with FSA, must have permission to do so. If there is reason to doubt that the administrative structure or the financial situation of the company is sound as a basis for the activities envisaged, the Danish financial supervisory authority does not give permission.

(2). A financial undertaking must give the FSA announcement on the establishment of subsidiaries in a country outside the European Union, which the community has not concluded an agreement with which are not covered by paragraph 1.

Special rules for the Danish insurance companies ' activities abroad

§ 41. The Danish financial supervisory authority may lay down detailed rules concerning the Danish insurance companies ' activities in countries outside the European Union, which the community has not concluded an agreement with the financial area.

§ 42. The Danish financial supervisory authority may lay down rules concerning transfers of portfolios designed in accordance to the company under section 38 (1) and § 39, paragraph 1.

Title III

Good practice, etc.

Chapter 6

Good usage, price information and contract conditions

General rules on best practices, price information and contract conditions

section 43. Financial companies and financial holding companies shall be operated in accordance with fair business practice and good practice within the business area.

(2). The Minister for economic and business affairs shall lay down detailed rules concerning fair business practice and good practice for financial companies.

(3). The Minister for economic and business affairs shall lay down detailed rules concerning price information for financial services.

§ 44. It is not permitted for commercial purposes in this country to contribute to the direct insurance for persons resident in Denmark, Danish ships or other risks situated here in the country, are drawn with other than





1) Danish insurance companies and

2) foreign insurance undertakings which fulfil the conditions laid down in section 30 (1) or section 31, paragraph 1, as well as foreign insurance companies which have been authorised by the FSA.





Special rules relating to a contract for banks, building societies and insurance companies

§ 45. If the hybrid core capital, see. section 132, or equity loan is issued in the form of convertible debentures, the financial company name these capital certificates.

§ 46. By a financial institution, mortgage institution or insurance company subscription of capital deposits covered by § 132 and section 136, paragraph 1, must at the same time, the company does not offer debt financing for the purchase of capital deposits.

Special rules for financial institutions

§ 47. Is there within the business relationship made bail for loans granted by a financial institution, and fails the borrower with payment of principal repayments or interest, shall within six months after the relevant due date in writing communicated to the services any of the guarantors or to it or them by those who are authorized to receive the message at all kautionisters on behalf of the community. Omission of this implies that the Bank loses its claims against the guarantor, to the extent their claims against the borrower has been impaired by the failure.

section 48. Have a guarantor outside business relationship made bail for loans granted by a financial institution, and fails the borrower with payment of principal repayments or interest, shall be not later than 3 months after the relevant due date is given written notice to concerned the guarantor. The provision of 1. paragraph shall apply mutatis mutandis if the Bank gives the borrower more time, without the guarantor's consent in this case.


(2). Exceeded the time limit referred to in paragraph 1, can guarantee obligation only enforceable against the guarantor for the amount that the borrower's debt after the secured claim would have been, if the borrower had paid all the benefits in a timely manner until the time which is 3 months prior to the date on which notice is given.

(3). Exceeding the time limit in paragraph 1 implies that the Bank loses its claims against the guarantor, to the extent that their recourse claims against borrowers has deteriorated, although the reduction of the guarantee obligation referred to in paragraph 2 shall be taken into account.

(4). A guarantor may not be liable for an amount greater than the principal or surety credit maximum at the conclusion of the agreement.

(5). Surety agreements in accordance with paragraph 1 shall be made in writing in order to be able to be invoked.

(6). A suretyship obligation pursuant to paragraph 1 shall lapse after 10 years or, if the surety agreement is entered into for security for a variable amount of credit or a loan with no fixed maturity, after 5 years, unless the obligation previously claimed by the Bank.

(7). By surety agreements in accordance with paragraph 1, the financial institution annually and in writing inform the guarantor on the size of the mortgage, as security for the guarantee is made.

§ 49. If a savings bank has lost part of its guarantee capital, savings bank provide information to people who want to join a guarantors.

(2). If a cooperative has lost a part of andelskapitalen, andelskassen give information to people who want to draw cooperative capital.

(3). The rules applicable to public limited-liability companies concerning the reduction of share capital shall mutatis tillempelser application for reduction of cooperative capital into cooperative banks.

§ 50. Capital pension, installment savings, even pension, children's savings and housing savings in a financial institution may be placed on a deposit account either in cash or as a pool of deposits and may also be placed in a separate depot.

(2). FSA sets out detailed rules concerning savings in pools with a financial institution, including rules on the placement, administration, accounting, auditing, and customer information. FSA sets out further rules for the placing of funds in securities, including on registration in a central securities depository, bank statement, value inventory and disposal.

§ 51. Capital pension, installment savings, even pension, children's savings and housing savings placed on a deposit account should be fully covered by the guarantee fund for depositors and investors, of a similar system in the credit institution's home country in the event of the bankruptcy or liquidation of the credit institution and by a combination of both systems.

§ 52. Financial institutions, which have been given approval by the FSA as a depot company for a mutual fund, special association or fåmandsforening, as the Association's depot company act independently and solely in the interest of the Association.

Special rules for mortgage lenders

§ 53. A mortgage lender must disclose to the borrower in the loan agreement that the mortgage loans granted in breach of the law on mortgages and mortgage bonds, etc. may be reduced in accordance with this law.

(2). If a mortgage after the law on mortgage loans and mortgage bonds, etc. are to be reduced, mortgage credit Institute as a replacement make a loan on similar terms, so that the borrower made unchanged. All borrowing costs in connection with the reorientation is the responsibility of the mortgage credit Institute.

(3). The borrower has no claim on a reorganization pursuant to paragraph 2, if it is demonstrated to the borrower by the mortgage institution knew or ought to know that the mortgage loan was granted in breach of the provisions of the law on mortgages and mortgage bonds, etc., or if the infringement of the provisions referred to in fact be due to information provided by the borrower.

Special rules for investment management companies

§ 54. When investment management companies carrying out portfolio management for investment funds, specialist associations, professional associations, fåmandsforeninger, hedge funds and other collective investment schemes, including intermediary securities for these, federations are subject to the same protection as customers under section 72.

(2). Investment management companies authorised to perform discretionary portfolio management for customers, must deal with the customer, the investment management company may place customer's portfolio funds or a portion thereof in the units of mutual funds, specialist associations, professional associations or fåmandsforeninger or other collective investment schemes, as investment management company manages.

Special rules for insurance companies

§ 55. The following insurance contracts may not validly entered into by or on persons resident in Denmark:





1) life insurance, whereby the insured's death by the Company undertakes to pay larger sums than the paid-up premiums with interest, in so far as the policy-holder is a different person from the insured and not have the insured's consent.

2) life insurance, whereby a carrier undertakes to pay a larger amount than the premiums paid, with interest, as a result of deaths occurring before the insured's age of 8. year.





(2). The Danish financial supervisory authority may exempt from the provisions of paragraph 1, nr. 1 and 2.

(3). The Danish financial supervisory authority may lay down detailed rules on the content of the General insurance conditions for life assurance.

section 56. The Danish financial supervisory authority shall lay down detailed rules concerning the details of a life or property and casualty insurance company shall be submitted in writing to customers before the insurance agreement is concluded and during the ongoing customer relationships.

§ 57. An insurance company that provides consumer insurance policies must offer those assurances can be signed with conditions that insurance may be terminated by the policyholder with 30 days ' notice to the end of a calendar month.

(2). By a consumer insurance referred to in paragraph 1 shall mean an insurance contract where the policyholder (the consumer) by the time the agreement is concluded mainly acting outside his profession.

(3). Paragraph 1 shall not apply to life insurance and change of ownership insurance sign in accordance with the law on consumer protection in the acquisition of immovable property, etc. (1) also applies not for insurance to cover a particular risk, which occurred only stretches over a limited period of time, when the insurance contract is concluded for an agreed period of not more than 1 month (short-term insurance), unless insurance is part of another type of insurance.

section 57 (a). An insurer may only use a professional company to dissemination of the insurance company's products, if the operator is registered in a public register of insurance intermediaries referred to in article 6. § 10 (1) or section 27, paragraph 1, of the law on insurance mediation.

(2). An insurance company may also use insurance distributors, covered by article 3, paragraph 2, of the law on insurance mediation.

§ 58. A life insurance policy is lost, he may, at the request of the insurer, which has demonstrated its title to the policy, with 6 months notice convening the bearer to sign up call happens by means of a notice. in the Official Gazette in the first number in a quarter shall contain a sufficient description of the policy, including the name of the, in whose life insurance.

(2). Report no one before the deadline, is the policy null and void and the company shall draw up a new policy to the person who requested the call made. This must pay the cost of the call.

(3). Report any it after publication, and can be an amicable settlement is not reached, a new policy is issued, before the notified claims eligibility is decided by judgment amongst themselves.

(4). The provisions of paragraphs 1 to 3 do not entail any reduction in access to look for a life insurance policy mortificeret by judgment pursuant to the law on cancellation of securities.

section 59. An insurance company, which represents building brandforsikring, within the limits resulting from its statutes or its permission, take over the insurance of any building.

(2). The company may, however, refuse to insure





1) buildings that are not adequately equipped against fire hazards, and

2) abandoned buildings.





section 60. An insurance company cannot bring a construction brandforsikring terminated due to non-payment of premium.

(2). A customer can only bring insurance to an end with the consent of the eligible according to each title and liens, there are things like on the property unless the property without deterioration of their legal position be insured in another company authorized to operate the building brandforsikring.

(3). The insurance company has udpantningsret for prizes with accrued interest and other costs. In addition, the company has mortgages for benefits provided in the insured property after property tax to the State and municipality in 1 year from bonds.

(4). The Danish financial supervisory authority lays down minimum conditions for the insurance companies ' drawing of the building brandforsikring.

Title IV

Ownership and management, etc.

Chapter 7

Ownership


section 61. Any natural or legal person who proposes to acquire, directly or indirectly, a qualifying share of 10 per cent or more of the basic regulation. § 5, paragraph 3, concerning a financial undertaking or of a financial holding company shall in advance notify the financial supervisory authority, and the Danish financial supervisory authority must approve the proposed acquisition. The same applies to the increase of the qualified share, which leads to this after the acquisition will be or exceed a limit of 20 per cent, 33 per cent, respectively. or 50 per cent of the share capital or of the voting rights, or give rise to the financial company or financial holding company becomes a subsidiary.

(2). Acquisition or increase of the percentage referred to in paragraph 1 may only be authorised when this is not contrary to the need to ensure sound and prudent management of the financial company or financial holding company.

(3). FSA approval or refusal shall be provided not later than 3 months after the FSA receipt of adequate notification of the proposed acquisition.

(4). The Danish financial supervisory authority may by approval of an acquisition or increase in accordance with paragraph 1 may specify a time for the implementation of this.

(5). The Danish financial supervisory authority may suspend the processing of an application for a natural or legal person directly or indirectly to the acquisition of the shares referred to in paragraph 1 in a financial company or a financial holding company, if the prospective acquirer are located in a country outside the European Union, which the community has not concluded an agreement with.

(6). Capital owners who have a share of at least 10 per cent, and which intend to reduce this proportion in such a way that it falls below one of the limits laid down in paragraph 1 shall inform the Danish financial supervisory authority accordingly and specify the size of the proposed future share.

(7). When a financial company or a financial holding company becomes aware of acquisitions or disposals of shares as referred to in paragraphs 1 and 6, should the company or holding company shall immediately give notice to the Danish financial supervisory authority.

(8). Financial companies and financial holding companies shall, not later than in the month of February to give the FSA notice of the names of the capital owners, which at the end of the previous years owned a qualified stake in the financial business or the financial holding company, and about the size of these shares.

§ 62. Should the capital owners, which are in the possession of any of the operations in section 61 (1) units of a financial undertaking or of a financial holding company, counteracts the sound and prudent management of the company, the FSA can remove the voting rights attaching to the relevant owners ' shares, or to order the company to follow certain guidelines.

(2). The Danish financial supervisory authority may remove the voting rights attaching to shares owned by natural or legal persons who fail to comply with the obligation in article 61, paragraph 1, to the prior notification by the FSA. The shares are reassigned full voting rights, if the FSA can approve the acquisition.

(3). In the event of a natural or legal person having acquired shares as referred to in section 61 (1), notwithstanding the fact that the FSA has refused to approve the acquisition of shares, the Danish financial supervisory authority remove voting rights attached to these shares.

(4). FSA has lifted voting rights pursuant to paragraphs 1 to 3, may not be included in the statement by holding it at a general Assembly represented the voting capital.

section 63. The Danish financial supervisory authority must be informed in advance about financial companies and financial holding companies ' acquisition, directly or indirectly, of a qualifying holding in a foreign financial company, as well as such increases of the qualified share, which means that this constitutes or exceeds a limit of 20 per cent, 33 per cent, respectively. and 50 per cent of the voting rights, respectively, the company capital, or the foreign financial company will be a subsidiary. The notification shall indicate the country in which the undertaking is established.

(2). Financial companies and financial holding companies, which have a share of at least 10 percent of a foreign financial company, and which intend to reduce this proportion, so that it falls below one of the limits laid down in paragraph 1 shall inform the Danish financial supervisory authority accordingly and specify the size of the proposed future share.

(3). Where the foreign financial company will be a subsidiary, the message to the Danish financial supervisory authority include the following information about the subsidiary:





1) the country in which the subsidiary is wanted established,

2) a description of the subsidiary's business, including information about the Organization and planned activities

3) subsidiary's address and

4) names of the subsidiary's management.





(4). By change of a conditions that have been notified in accordance with paragraph 3, no. 1-4, the financial company or the financial holding company shall announce to the Danish financial supervisory authority before the change is made. If the financial company or financial holding company not previously familiar with the change, inform the Office of the Danish financial supervisory authority be given immediately after the financial company or financial holding company has received notification of the change.

Chapter 8

Management and fitting-out of the company

section 64. A member of the Board of Directors and group management in a financial company must have sufficient experience to exercise the duties or the post.

(2). A member of the Board of Directors and the Executive Board may not contest the Office or position as Board member and Director respectively of a financial undertaking where





1) the question imposed criminal liability for violation of the criminal code or the financial legislation and this violation implies the risk that the operator or production not handled safely,

2) the person has declared a suspension of payments, bankruptcy, has filed an application for debt relief or started negotiations on an arrangement,

3 the financial situation of the person concerned) or companies, the owner concerned, or in which the person concerned is participating in the operation, caused the financial business loss or risk of loss or

4) the person concerned has demonstrated such behavior, that there are grounds for believing that the person concerned will not carry out the duties of the position or safely.





(3). Members of the Board of Directors and the Executive Board have a duty to give the FSA information relating to the conditions specified in paragraph 2.

(4). Paragraph 1, paragraph 2, no. 1, 2 and 4, and (3) shall apply mutatis mutandis to the members of the Board of Directors and the Executive management of a financial holding company.

section 65. The Board shall by a rules of procedure make arrangements for the performance of his duties.

§ 66. The tegningsret, which, according to the Danish public companies Act section 60 (2), the members of the Board of directors or the Executive Board, may only be carried out by at least two of the Association.

section 67. Notice convening the annual general meeting in a financial business Council meeting in a savings bank respectively should be publicly available and in accordance with the provisions of the statutes. The press should have access to general meetings respectively representative meetings of savings banks.

(2). Paragraph 1 shall not apply to undertakings which is 100 percent owned by a financial company or financial services companies in the same group.

section 68. The FSA carries out financial companies the powers conferred upon the Danish Commerce and companies Agency in accordance with section 72 of the Danish public companies Act, paragraph 2.

section 69. For accomplishing certain specified tasks in the statutes, including the election of the Board of Directors may establish a Board of regulators. Representative of the community's members are with regard to the performance of their duties shall be subject to the same responsibilities as a Board of Directors. This provision shall not apply to savings banks.

section 70. The Board of Directors of a financial company shall, in respect of the financial company's main activity areas draw up written guidelines, in which the Division of labour between the Board and management are established.

§ 71. A financial undertaking shall have





1) effective forms of business management,

2) a clear organisational structure with well-defined, transparent and consistent lines of responsibility,

3) a sound administrative and accounting procedures,

4) written procedures on all the essential areas of activity,

5) effective procedures to identify, manage, monitor and report on the risks to which the company is or may be exposed,

6) the resources necessary for the proper conduct of its business, and apply these appropriate,

7) procedures for the separation of functions related to the management and prevention of conflicts of interest,

8) adequate internal control procedures and

9) reassuring control and security measures in the it field.





(2). The Danish financial supervisory authority shall issue instructions relating to the areas referred to in paragraph 1.


section 72. A financial company that has permission to operate as a securities dealer shall meet the requirements set out in § 71 (1) and take the necessary precautions in order to ensure consistency and regularity in his activity as a securities dealer and use resources, systems and procedures which are appropriate for that purpose.

(2). A financial company that has permission to operate as a securities dealer,





1) have appropriate rules and procedures for transactions with the instruments listed in annex 5, which includes the company's management and employees,

2) could detect conflicts of interest that could harm customers ' interests, both between securities handler customers and between customers and securities dealer and restrict these conflicts of interest as much as possible, and, where there is a risk that customers ' interest damage, inform the customer in the case of conflicts of interest to the General content, in agreement with the customer,

3) ensure clients ' ownership of their resources and the instruments listed in annex 5,

4) protect clients ' rights and may not without explicit consent dispose of their resources and instruments and

5) lead and keep complete lists of all services and transactions performed for at least 5 years after the service is performed, respectively, the transaction is completed.





(3). A financial company that has permission to operate as a securities dealer, can keep customers ' instruments, see. Annex 5, in the same depot (assemble depot), if the financial entity has informed the customer of the effects thereof and the customer has given consent. The Danish financial supervisory authority may in exceptional cases authorise the customers and a financial company's own instruments must be stored in the same repository. A financial company shall keep a register, of which the individual clients ' ownership of the registered instruments clearly. The Danish financial supervisory authority can deprive a financial company that has permission to operate as a securities dealer, the right to lead a collective depot.

(4). (2). 2-4 shall apply mutatis mutandis to Danmarks Nationalbank and the Danish Agency with the necessary adaptations.

(5). The Danish financial supervisory authority may lay down detailed rules concerning the mentioned in paragraphs 1 to 3 ratio.

(6). In the event of a financial enterprise bankruptcy, receivership or similar. can the individual customer on the basis of the in paragraph 3 3. item listed directory take its instruments of a collective depot, if not previously dispute on the customer's property.

section 73. The duties of the Board of Directors of a financial company or as a member of the Board of Governors in other financial firms than savings banks cannot be reconciled with the post of Director of the company in question. However, the Board of Directors may temporarily appoint a Director in a decline of its members or a member of the Board of Governors as Director. The question may not exercise the right to vote in those bodies.

(2). The Office of internal audit manager and Deputy Chief Auditors cannot be reconciled with the Office of Member of the Board.

§ 74. The Chairman of the Board must ensure that the Board of Directors shall meet when necessary, and must ensure that all members be summoned. Any member of the Board, a Director, an external auditor, the internal audit manager and the responsible actuary in a financial company may require that the Board be convened. A Director, an external auditor, the internal audit manager and the responsible actuary shall have the right to be present and to express their views at Board meetings, unless the Board of Directors in each case decides otherwise. The external auditors and the internal audit manager has always the right to participate in Board meetings during the processing of matters relevant to the review or for the presentation of the annual report.

(2). The external auditors, the internal audit manager and the responsible actuary is required to participate in the Board's treatment of the files concerned, if it is desired by just one Board member.

(3). Of the negotiations on the Board must be kept Protocol, which shall be signed by all members present. A member of the Board, a Director, an external auditor, the internal audit manager or the responsible actuary who do not agree with the Board's decision, have the right to have its opinion recorded in the minutes.

§ 75. The financial company must immediately inform the FSA information about matters that are of vital importance to the financial enterprise continued operation.

(2). Similarly, each Member of the Board of Directors, a Director and the responsible actuary in a financial company.

(3). If a member of a financial company's administrative or management body, the external audit or the responsible actuary must assume that the financial company does not meet the capital requirement in accordance with §§ 124-126 or solvency requirements pursuant to section 124, paragraph 4, article 125, paragraph 7, and section 126, paragraph 8, that person must promptly notify this to the Danish FSA.

§ 76. A Director shall not without the Board's approval, enter into agreement between the company and themselves or financial agreement between the financial undertaking and third parties, in which the Director has a substantial interest that may be contrary to the financial business.

§ 77. Persons who by law or by their statutes, provision is employed by the Board of Directors of a financial company and employees, for which there is a significant risk of conflicts between their own and the financial business interests, do not on their own account or through companies they control,





1) borrow or draw on already approved credits for the purchase of securities, when they purchased securities be made security for the loan or credit

2) acquire, issue or deal with derivative financial instruments, unless the purpose is hedging,

3) acquire shares, other than shares in mutual funds, special funds, hedge funds and foreign collective investment undertakings covered by the Act on investment associations and special associations and other collective investment schemes, etc., with a view to the sale of these earlier than 6 months after the acquisition or

4) acquire positions in foreign currency other than the euro, when positionstagningen is done for the purposes of other than payments for the purchase of securities, goods or services or the purchase or operation of real estate or to use for travel.





(2). The persons referred to in paragraph 1 may not acquire shares in companies carrying out activities referred to in paragraph 1, no. 1-4. However, this does not apply to the purchase of shares in financial institutions, insurance companies, mortgage companies or stockbroking companies and units in investment funds, special funds, hedge funds and foreign collective investment undertakings covered by the Act on investment associations and special associations and other collective investment schemes, etc.

(3). The Board of Directors to decide, for which employees there is a significant risk of conflicts between their own and the financial business interests, and which must therefore be covered by the ban. The Board must ensure that the person is knowledgeable about this. The criminal provision in § 373 (2), shall apply from the date on which the person concerned has received information to that effect.

(4). The Management Board shall, in respect of persons covered by paragraph 1, draw up guidelines for the verification of compliance with the prohibition laid down in paragraph 1 and paragraph 2, 1. section, including the reporting of property dispositions.

(5). The external audit shall once a year review the financial business guidelines in accordance with paragraph 4 and in the audit of the hearing concerning the annual report indicate whether the guidelines are deemed to be reassuring and useful, and have worked on the company's control procedures has given rise to comments.

(6). A custodian Department has, at the request of the Board of Directors of the financial company must provide the financial company external audit access to information about accounts and deposits, as well as to supply prints away for persons covered by paragraph 1.

(7). The prohibition provided for in paragraph 1, no. 2 do not include financial instruments derived from shares in the financial business, or a company that is associated with it, and the group to which the person concerned receives as part of his remuneration.

(8). The prohibition provided for in paragraph 1, no. 1 does not include loans for purchases of employee shares as well as the instruments referred to in paragraph 7.

(9). The prohibition provided for in paragraph 1, no. 3, does not include any shares acquired by use of the instruments referred to in paragraph 7.

Paragraph 10. Internal audit and the Deputy Heads of audit shall notwithstanding the provisions of paragraphs 1-9 do not have financial interests in the company or group of companies, as they are employed in.

§ 78. Without the Board's approval, which shall be recorded in the Board of Directors ' minute book, a financial undertaking must not grant commitment to or receive collateral from





1) Board members and executives in the financial business or

2) companies where the in no. 1 the said persons is the Director or Board member.






(2). The exposures referred to in paragraph 1 shall be granted in accordance with the financial business's usual business conditions and on market-based terms. The financial company's external auditor must audit the hearing concerning the annual report declare whether or not the requirements of 1. paragraph are met.

(3). The Executive Board and the Board shall in particular monitor the sound and the progress of the exposures referred to in paragraph 1.

(4). The rules laid down in paragraphs 1 to 3 shall also apply in exposures to persons associated with directors by marriage, cohabitation for at least 2 years or connection of the right ascending or descending line or as siblings, and with companies for which such persons are directors.

(5). A financial company or companies within the same group may not grant commitment to or receive collateral from an external auditor or the internal audit-audit manager or Deputy. This does not apply to loans granted by a life assurance company in the field of genkøbsværdien of one of the life assurance company issued insurance policy.

§ 79. The rules on representation in the consolidated law on limited liability companies do not apply to employees in companies, through which a financial business temporarily operates other business within the meaning of this law.

General rules on management's other duties

section 80. Persons who by law or by their statutes, provision is employed by the Board of Directors of a financial company may not, without the Board's permission to own or operate as self-employed persons, or as a Board Member, official or otherwise participate in the management or operation of other business activities than the financial activities referred to in article 6. However, § 199, paragraphs 9 and 10.

(2). Other employees of a financial undertaking, for which there is a significant risk of conflicts between their own and the financial business interests, may not, without the Board's permission to own or operate as self-employed persons, or as a Board Member, official or otherwise participate in the management or operation of other business activities than the financial business. The Board of Directors shall be informed about the permissions given by the Executive Board.

(3). The Board of Directors to decide, for which employees there is a significant risk of conflicts between their own and the financial business interests, and which therefore must have management's permission, see. (2). The Board must ensure that the person is knowledgeable about this. The criminal provision in § 373 (2), shall apply from the date on which the person concerned has received information to that effect.

(4). It referred to in paragraphs 1 and 2 may only be disputed if the company financial undertaking or undertakings included in the consolidation or the administrative community with the financial business, has not or incurs an exposure with those referred to in paragraphs 1 and 2 businesses or undertakings included in the consolidation of these companies. The exception is exposures in the form of participations, exposures to those in paragraph 5 and 6 mentioned companies as well as exposures to companies included in the consolidated with the financial company or companies where financial businesses jointly or together with foundations and associations established pursuant to § § 207, 214 and 215 owns more than 4/5 of the shares.

(5). The exposure referred to in paragraph 4, the ban does not apply in connection with participation in boards of Danish ship credit a/s, Danish development finance a/s, BSU Foundation, LR realkredit a/s, Bornholm's Vocational Fund, the Greenland Bank a/s, the Kingdom of Denmark's Fishing bank, regulated markets, clearing houses, central securities depositories, OMX AB, OMX Exchanges Oy, the industrialisation Fund for developing countries (IFU) and the industrialisation Fund for Eastern Europe (IFØ).

(6). The exposure referred to in paragraph 4, the ban does not apply in connection with participation in the Board of Directors of a company which temporarily operated by a financial institution, mortgage lender or insurance company under section 25 for protection or liquidation of prior underwriting exposures.

(7). All permissions given by the Board pursuant to paragraph 1 to be presented by the Board of Directors ' minute book.

(8). The financial entity shall at least once a year publish the information about the task, as the Board of Directors has approved in accordance with paragraph 1. In addition, the external audit in the audit of the hearing concerning the annual report issue an statement whether the financial company has engagement with businesses within the scope of paragraphs 1 and 2.

(9). The Danish financial supervisory authority may, in exceptional cases, grant derogations from paragraph 4.

Special rules for savings banks

§ 81. The Board of Governors is sparekassens highest authority.

(2). The Board must have at least 21 members. The representatives shall be elected for a term of 4 years. If the Board of Governors at departure will be less than 21 members, by-elections take place.

(3). Eligible to vote in elections of representatives is sparekassens depositors and guarantors. Each depositor can only cast one vote. A guarantor has 1 vote for every 1,000 DKK paid capital guarantee, up to a maximum of 20 votes. Rules on the electoral system, on the implementation of the right to vote and the choice must be indicated in the statutes.

(4). The depositors and ensure that voting in elections to the Board of Governors, choosing such a big part of this, which corresponds to the ratio between the number of votes and the total number of votes cast, there shall be vested sparekassens depositors and guarantors, subject to a minimum of 1/3 of the representatives. The other members are elected solely by the guarantors and in savings banks eligible to vote without voting guarantors by the outgoing Board of regulators. It should be pursued, to the Board of regulators shall be composed of geographically as well as versatile in commercial terms.

(5). If any deposit in the savings bank has the right to intervene as guarantor and the number of votes that may be cast by guarantors, are at least 1,000, it may, notwithstanding the provisions of paragraphs 3 and 4, in the sparekassens articles of Association stipulate that the Board of Governors alone is selected by the guarantors. A guarantor has 1 vote for every 1,000 DKK paid capital guarantee, up to a maximum of 20 votes.

section 82. Board members are elected by the Board of Governors for more than 4 years at a time.

section 83. A savings bank's articles of association must contain provisions for





1) sparekassens name and any secondary,

2) the municipality in this country, where the savings bank must have its registered office (Head Office),

3) guarantee capital and return on investment,

4) guarantors and the obligations incumbent on these,

5) of representatives, Board of Directors, executive management and audit,

6) convening of meetings and elections to the Council of representatives, see. section 81 (3),

7) the time and place of the regular Council meeting,

8) what matters to be dealt with at the extraordinary Council meeting,

9) financial reporting and the use of profits,

10) amendment of statutes and

11) voluntary termination by company.





section 84. The Danish public companies Act section 49 (1), (2), (3). and (4). paragraph, paragraphs 3-5, paragraph 7, 1. paragraph and paragraph 8, §§ 50-53, article 54, paragraph 1, 1.-3. paragraphs, and paragraphs 2 to 4, sections 55, 57 and 58, 55 (a), section 60 (1) and (2), sections 61-64, 68-69 (a) and 70-72, section 73, paragraph 1 (2), 4. and 5. paragraphs, and paragraphs 4 and 6, §§ 74-77, 80 and 81, section 177 and section 178 (1), shall, with the necessary adjustments and with the deviations shown by this law provisions by analogy to savings banks.

(2). Cancellation of guarantee certificates without judgment can be done according to the rules of the Danish public companies Act section 24, paragraph 3, with the same notice as by cancellation of share certificates that are not negotiable.

Special rules for cooperative banks

§ 85. The General Assembly is the highest authority of the institution and the cooperative made up of cooperative institution shareholders.

(2). Any cooperative gardens has the right to meet at the general meeting and to speak there. Each cooperative gardens have 1 vote.

§ 86. Board members are elected by the general Assembly.

section 87. A cooperative Treasury's articles of association must contain provisions for





1) cooperative institution name and any secondary,

2) the municipality in this country, where andelskassen must have its registered office (Head Office),

3) cooperative capital and each andelshaveres share in the equity of the institution, cooperative

4) conditions of membership, including the right of admission and access to termination,

5) the obligations of the cooperative,

6) general Assembly, Board of Directors, executive management and audit,

7) call to the general Assembly,

8) time and place of the annual general meeting,

9) what matters to be dealt with at the annual general meeting

10) financial reporting and the use of profits,

11) adoption of the proposal at the annual general meeting, including changes to the bylaws,

12) voluntary termination by the company and

13) provisions regarding redemption of andelskapitalen.





(2). If a cooperative is a member of an association within the meaning of §§ 89-96, this must be stated in the articles of Association.


section 88. The Danish public companies Act section 49 (1), (2), (3). and (4). paragraph, paragraphs 3-5, paragraph 7, 1. paragraph and paragraph 8, §§ 50-53, article 54, paragraph 1, 1.-3. paragraphs, and paragraphs 2 to 4, sections 55, 57 and 58, 55 (a), section 60 (1) and (2), sections 61-64, 66, 68-69 (a) and 70-72, section 73, paragraph 1 (2), 4. and 5. paragraphs, and paragraphs 4 and 6, §§ 74-77, 80 and 81, section 177 and section 178 (1), shall, with the necessary adjustments and with the deviations shown by this law provisions by analogy to cooperative banks.

(2). Cancellation of cooperative evidence without judgment can be done according to the rules of the Danish public companies Act section 24, paragraph 3, with the same notice as by cancellation of share certificates that are not negotiable.

Special rules for associations of cooperative banks

section 89. The General Assembly is in associations of cooperative banks, the Supreme authority. The individual voting rights exercised at general meetings andelskassers through delegates designated by the individual andelskassers general Assembly.

(2). Any cooperative gardens in a connected andelskasse has the right to appear at the Association's general Assembly and speak there.

section 90. Board members are elected by the general meeting or, if the Association's bylaws, by the Board of Governors determines.

(2). The Board of Directors of the Association must approve any connected andelskassers bylaws and shall ensure that these are not contrary to this Act or to the Association's bylaws. The Board can, if required, supervision, make changes in the connected andelskassers statutes.

section 91. The Association's articles of association must contain provisions relating to the conditions referred to in section 87, paragraph 1, no. 1, 2, and 6-13, as well as provisions for a





1) that the Association and its members make up a unit,

2) to the Association and its members jointly and severally liable for the obligations of the Association and its members,

3) how the Association any deficit shall be distributed among the cooperative banks connected among themselves,

4) the connected andelskassers share in its profits and equity and

5) rules on membership, resignation and exclusion of the Association.





section 92. Affiliated cooperative banks should be in their name indicate membership of the Association.

section 93. The Association's leadership is empowered to issue regulations for members in order to ensure that the Association and its members can fulfill the law and the statutes requirements.

§ 94. A connected cooperative Treasury's Board and management to give the Association's internal as well as external auditors access to carry out the investigations which the Auditors deem necessary, and to ensure that they get the information and the assistance provided to the Auditors considers necessary for the performance of their duties.

section 95. Withdrawal or exclusion from an association requires permission from the FSA and can only be done with a minimum of six months notice to the end of a fiscal year. Permission can be granted at the earliest when the accounts for this fiscal year is approved, but have effect from the end of the fiscal year.

section 96. The Danish public companies Act section 49 (1), (2), (3). and (4). paragraph (3), (7), 6-1. paragraph and paragraph 8, §§ 50-53, article 54, paragraph 1, 1.-3. paragraphs, and paragraphs 2 to 4, sections 55, 57 and 58, 55 (a), section 60 (1) and (2), sections 61-64, 66, 68-69 (a) and 70-72, section 73, paragraph 1 (2), 4. and 5. paragraphs, and paragraphs 4 and 6, §§ 74-77, 80 and 81, section 177 and section 178 (1), shall, with the necessary adjustments and with the deviations shown by this law provisions by analogy to an Association of cooperative banks.

Special rules for stockbroking firms and investment management companies

section 97. (Repealed)

Special rules for investment management companies

section 98. The majority of the members of the Management Board of an investment management company may not be members of the Board of Directors of a depot company or another company, as an association or other investment schemes, which is managed by the investment management company, have entered into significant agreements with, or be employed in escrow company or of another company, as an association or other investment schemes, which is managed by the investment management company, has entered into agreements with major , or be a member of the Board of directors or employed in other companies, as is the business connected with these companies.

section 99. The administrative or management body of an investment management company may only give permission in accordance with section 80 (1) and (2) a person may be the Board of Directors of or participate in the management or operation of a mutual fund, a special Association, a professional association or a fåmandsforening, if the Association is not administered by the investment management company, and where there is no person in line for the majority of members of the Board of Directors of that Association and investment management company's Board of Directors. The person concerned shall not perform the duties of Chairman of the Board.

(2). The administrative or management body of an investment management company may not give permission under section 80 (1) and (2) to directors and other senior executives may be Board members in or participate in the management or operation of the depot company or another company, as one of the associations or investment schemes, such as investment management company manages, has concluded major agreements with, or in a company group of companies associated with these companies.

§ 100. An investment management company must be in possession of a sufficient qualified staffing and the necessary professional expertise to carry out the administration of the type of associations managed by the investment management company, and to make investment decisions regarding their products.

§ 101. Investment management companies must by managing mutual funds, specialist associations, professional associations, approved fåmandsforeninger and hedge funds act independently and solely in the interest of the Association.

(2). Investment management companies in the daily management carry out the interests of the associations, they manage, in the best possible way.

(3). Investment management companies must avoid conflicts of interest between themselves and the associations between companies, as it is in the business of, and associations and between the associations among themselves. When such conflicts of interest cannot be avoided, should inform the individual concerned the collecting society associations Board of Directors accordingly.

(4). When an investment management company also has permission to perform discretionary portfolio management, it must maintain a clear separation between that portfolio management and administration of funds. Investment management company is in matters relating to managing associations, subject to the individual Association Board instructional competence.

(5). The Danish financial supervisory authority may lay down rules on the operation of the investment management companies must avoid conflicts of interest.

Investment management companies ' access to delegate tasks

§ 102. If an investment management company delegate certain tasks, which in the context of the administration of the Association is the responsibility of the investment management company to perform, to third parties, this must be done on the basis of a decision taken by the Association's Board of Directors.

(2). There can not be decided on that investment management company can delegate decisions about investment by associations or other core tasks. FSA sets out detailed provisions on which tasks are core tasks.

(3). Investment management company's and the company's obligations shall not be affected by the investment management company has delegated tasks to third parties.

§ 103. An investment management company shall ensure that the undertakings to which the investment management company delegate tasks to is qualified and able to perform those tasks. In those cases where the delegation concerns the investment management, may be delegated to enterprises which are authorized to or registered for the purpose of asset management and subject to prudential supervision.

(2). Delegation of tasks shall not hinder an effective supervision over the management company and the investment must not prevent investment management company in work or association to be managed in the interests of its members.

section 104. By delegation of tasks to an investment management company ensure that applicable measures to give the individuals who lead the investment management company, the opportunity at any time to effectively monitor the activities of the company for which the task is delegated.

(2). The agreement on the delegation shall not prevent investment management company in at any time to provide additional instructions to the contractor to which the task is delegated to, and to terminate the agreement with immediate effect, if it is in the interest of the Association managed.

§ 105. Investment management company shall, not later than at the same time with the conclusion of an agreement on the delegation to inform the Danish financial supervisory authority on the content of the agreement and conditions.

Special rules for depot companies for mutual funds, specialist associations, fåmandsforeninger and hedge funds


§ 106. A depot company must manage and store a Union securities, cash and other assets separately.

(2). Depot, the company must ensure that





1) a Union issue and redemption of members ' shares shall be made in accordance with the rules laid down in the Act on investment associations and special associations and other collective investment schemes, etc. and the articles of Association,

2) securities and derivative financial instruments, which are sold for the Association's expense, be supplied against that sum (compensation) shall be paid to sales depot company,

3) payment for securities and derivative financial instruments that are purchased for the Association's Bill, only takes place on the provision of these to depot company,

4) assets of the Association, which has been lodged as security for obligations of the Association, be returned to the depot company, when the secured claim is lodged,

5) payment of dividends or profits to increase in the provision for assets are carried out in accordance with the Association's statutes have the rules thereof,

6) valuation of a Union holdings of mortgages shall be in accordance with the rules thereof,

7) a voluntary purchase and sale of securities and derivative financial instruments is done in accordance with section 46 of the Act on investment associations and special associations and other collective investment schemes, etc. and

8) buying and selling of other values, including mortgages, shall be carried out at prices that are not less favourable than the fair value.





§ 107. Depot company is responsible for any damage to the satisfaction of the Association, the Association had to suffer as a result of failure to perform or improper performance of the company's obligations. Depot company is responsible, even though the depot company leaves the storage of the Association's assets or a part thereof to another depot leads. Depot company cannot by contract exclusions of this responsibility.

Special rules for insurance companies

§ 108. The Executive Board shall ensure that an insurance company has at its disposal sufficient expertise to calculate technical provisions.

(2). Has the insurance company permission to operate life insurance company, the Board of Directors must appoint a responsible actuary who shall carry out the necessary insurance technical features, including calculations and studies. The position of actuary cannot be reconciled with the post as a member of the Executive Board or Supervisory Board of the insurance company.

(3). When a responsible actuary dismissed or resigns, the Board of Directors and aktuaren not later than 1 month after the termination of employment to send every report to the FSA about his background.

(4). The responsible actuary shall ensure that the company complies with its technical basis, etc. Aktuaren should review the actuarial content in the company's activities and material and ensure that the technical basis, etc., see. § 20, at any time in accordance with section 21, paragraphs 1 to 5, the said requirements.

(5). The responsible actuary shall immediately report any breach of the conditions referred to in paragraph 4 to the Danish FSA. Aktuaren has the right to Executive Board to require all information necessary for the exercise of his Office. The Danish financial supervisory authority may require the information of aktuaren, which is necessary for assessment of the financial position of the company.

(6). The responsible actuary shall annually submit a report to the FSA.

(7). The Danish financial supervisory authority may lay down detailed rules concerning the mentioned in paragraphs 2-6 conditions, including whether the requirements a person must meet in order to be able to be employed as a responsible actuary.

section 109. sections 73 and 74 shall apply mutatis mutandis to the insurance company's representative.

section 110. The Danish public companies Act section 48 (a) shall not apply to an insurance company's acquisition of its own shares.

Special rules for mutual insurance companies

§ 111. Members and guarantors are entitled to take a decision in a mutual insurance company are exercised at general meetings. Any member must have at least 1 vote.

(2). In derogation from paragraph 1, the statutes may provide that the general Assembly is made up of delegates elected by the members and guarantors or delegates in these.

section 112. Mutual insurance companies ' articles of Association shall in addition to the Danish public companies Act § 4 listed contain provisions on





1) members and guarantors are liable for company's obligations as well as on members and guarantors are mutual liability, see. § 284, paragraph 2,

2) whether the company should be able to take over reinsurance without mutual responsibility, and

3) whether guarantee capital shall accrue interest, and, where appropriate, in accordance with the rules.





§ 113. Resolution amending the articles of Association shall be taken at the general meeting, in accordance with article 3. However, articles 23 and 114, see. the Danish public companies Act § 38. The decision is only valid if it be accepted by at least two thirds of the votes cast. The decision must also meet the additional requirements which the statutes may contain.

(2). Significant changes in a company's purpose may, unless otherwise provided in the articles of Association, be adopted only when the connection is obtained from three-fourths of the guarantors and three-fourths of the members or, if the general Assembly is composed of delegates, since from three-fourths of these. Communication from the Commission to the guarantors of such changes must be given no later than 8 days following the decision at the general meeting. Guarantors who oppose such changes, may, not later than 1 month after the general Assembly put forward on application, require that the other guarantors to take over their guaranteed share.

§ 114. The Danish public companies act § § 49-55 (a), article 56, paragraph 1 1. and 2. clause, and paragraph 5, sections 57 and 58, article 60, paragraph 1-3, § § 61-64, 68-70 and 72, section 73, paragraph 1, paragraphs 2, 4 and 5. clause, and paragraph 3, and § § 75-77 finds with the necessary adjustments and with the deviations shown by this law provisions by analogy to mutual insurance companies.

(2). In the provisions referred to in paragraph 1, the provisions concerning shareholders apply to guarantors and provisions on share capital and shares the use of guarantee capital and guarantees shares with necessary modifications.

(3). The Danish public companies Act, section 65 (2), section 66, § 71, section 73, paragraph 7, article 74, § 75, paragraphs 1 and 3, § 76 (2), section 80 and section 81 shall also apply with the necessary adjustments and with the deviations shown by this law provisions by analogy to mutual insurance companies.

(4). In the provisions referred to in paragraph 3 shall apply to all the provisions relating to the shareholders entitled to vote at the mutual insurance company general Assembly.

(5). The Danish public companies act §§ 112 and 113 on the payout to shareholders shall apply mutatis mutandis to the guarantors and interest payment to members of the mutual insurance companies.

Special rules for lateral pension funds

section 115. Unless the Minister for economic and business affairs, taking into account the institution's relationship allows a different composition of the Board of Directors shall consist of a Chairman and an equal number of members of the Board of Directors, of which at least half must be elected by and from amongst the members of the institution.

(2). In statutes may stipulate that the election of the Board of Directors and amendment of the articles of Association shall be carried out by the institution's members by the Chairman.

section 116. The provisions applicable to mutual societies in §§ 23 and 114 shall apply mutatis mutandis for lateral pension funds, without prejudice. However, (2) and § 284, paragraphs 2 and 3.

(2). The Danish public companies Act section 49, paragraph 6, does not apply for lateral pension funds.

Chapter 9

Disclosure of confidential information

§ 117. Members of the Board of Directors, members of local boards and the like, members of the Board of Governors of a financial undertaking which is not a savings bank, auditors and scrutinizers as well as their alternates, founders, appraisers, liquidators, Executive Directors, Actuaries, general agents and administrators in an insurance company, as well as other staff members must not disclose or exploit confidential information improperly, as they learn in the course of their duties have been familiar with. This provision shall apply mutatis mutandis to financial holding companies.

(2). Anyone who receives information pursuant to paragraph 1 shall be covered by the obligation of professional secrecy referred to in paragraph 1.

section 118. Usual information about customer relationships can be passed to use for accomplishing administrative tasks.

(2). To use for accomplishing administrative tasks can information be disclosed to a limited liability company, as arbejdsmarkedets tillægspension owns fully, and to the arbejdsmarkedets tillægspension, see. lov om arbejdsmarkedets tillægspension section 26 (b), paragraph 3, and article 23, paragraph 4, as well as to the managing company in an insurance management community.

(3). The one who receives the information referred to in paragraphs 1 and 2, are the subject of the article 117, paragraph 1 referred to professional secrecy.

(4). FSA sets out detailed rules about what information there is usual customer information in accordance with paragraph 1.

§ 119. Information about purely private matters must not be disclosed without the client's consent, unless the transfer is entitled under section 117 (1) or section 118, paragraph 2.


section 120. Information may be disclosed to the financial company's parent company for use for risk management of companies in the group, where the parent undertaking is a financial holding company or a financial company. However, this does not apply to information about purely private matters.

(2). Information about private customers can not be disclosed for use for risk management, see. (1) except for those exceptional cases where information about a private customer relate to obligations that have or will be able to get a considerable size.

§ 120 (a). Information about business customers can be exchanged between financial institutions and mortgage companies, which are related to the use of group risk management, including credit assessment and credit administration. Similarly, the exchange of information with these businesses ' financial holding companies and subsidiaries. Exchange of information can only be done with subsidiaries which provide lending or driver leasing company.

(2). The provision of paragraph 1 shall also apply to the exchange of information between the jointly-owned banks and mortgage-credit institutes and holders of the capital shares of that money or mortgage lender, when you mentioned the holders is money-or mortgage companies and they jointly possess more than 4/5 of the shares. Similarly, the exchange of information with the jointly controlled companies ' subsidiaries, which provide lending or driver leasing company.

(3). Disclosure pursuant to paragraphs 1 and 2 shall not include the information referred to in section 119.

(4). The one who receives the information referred to in paragraphs 1 and 2, are the subject of the article 117, paragraph 1 referred to professional secrecy.

section 120 b. A lending financial institution or mortgage lender may disclose information about a borrower to the issuing financial institution or mortgage lender if there is entered into a loan agreement, which States that the loan can be financed by another money institution or mortgage institution issuing covered bonds or covered mortgage bonds. Exchange of information between the lending financial institution or mortgage lender and the Bank or mortgage lender that issues the special covered bonds or covered mortgage bonds, the rate at which the loan is funded, can happen in so far as it is necessary in the interests of risk management and portfolio management in the register or the portfolio in a series or group of series with series reserve fund.

§ 121. Information about a private customer must not be disclosed for purposes of marketing or advice, unless the customer has given consent.

(2). To the business units that are subject to professional secrecy, as referred to in section 117, paragraph 1, as well as companies in which several financial companies or investment funds, special funds, approved fåmandsforeninger or hedge funds jointly own a company that carries on business as the financial company must operate through a subsidiary company, or a company that is ancillary to the financial business that is subject to an obligation of professional secrecy, as referred to in section 117 (1) disclosure pursuant to paragraph 1 may be made without consent, if there is talk about general customer information that forms the basis for Division into categories, and if the transfer is necessary for the undertaking, as information is transmitted to, can pursue a legitimate interest and concern for private customer does not exceed this interest.

(3). Usual information about corporate relationship can be passed on for use by marketing and consulting for a financial undertaking which is subject to professional secrecy, as referred to in section 117, paragraph 1.

section 122. The financial company must draw up guidelines as to the extent to which the information is transmitted from the company. The guidelines shall be publicly available.

section 123. Consent to disclosure of the information to be provided in written form.

(2). When an insurance contract concluded on the basis of telephoning, can consent to the disclosure of information to use for this, however, shall be delivered orally. In this case, the insurance company within 14 days after the insurance contract is concluded in writing inform the customer about the types of information that may be communicated with customer's oral consent, for what purposes the transfer takes place, as well as who receives information based on customer's oral consent.

(3). On customer's request the financial business must inform their clients about the types of information that can be disclosed with the consent of the customer, for what purposes the transfer can be done, and who can receive information on the basis of the customer's consent.

(4). The financial company must by obtaining written consent inform customers about the possibility in accordance with paragraph 3, to get information about the consent to this range.

Title V

Financial companies ' capital structure

Chapter 10

The solvency

General rules on solvency

section 124. Financial institutions and mortgage ' Board and management should ensure that the Department has a sufficient capital base and has internal procedures for risk measurement and risk management for ongoing assessment and maintenance of a capital base of a size, type, and distribution, as is appropriate to cover the Department's risks.

(2). Basic capital in financial institutions and mortgage companies must be at least





1) 8 per cent of risk-weighted items (the solvency requirement) and

2) 5 million. Euro (minimum capital requirement), see. However, paragraph 3.





(3). For banks, whose capital base on 18. December 1989 was less than 5 million. euros, the minimum capital requirement basis capital per 18. December 1989. The total capital base of the Bank, which occurs in connection with an amalgamation of two or more financial institutions covered by 1. paragraph, shall not be less than the combined total of the institutions ' total capital base at the time of the merger, if not the merged institution meets the minimum capital requirement in accordance with paragraph 2, nr. 2.

(4). Banks ' mortgage ' Board and management and should, on the basis of the assessment referred to in paragraph 1, determine the Department's individual solvency needs. The solvency requirements shall be expressed as the sufficient capital base as a percentage of risk-weighted items. Solvency requirement can not be less than the solvency requirement pursuant to paragraph 2, no. 1, and the minimum capital requirement set out in paragraph 2, no. 2.

(5). The Danish financial supervisory authority may set a higher individual solvency requirements than what is stated in paragraph 2, no. 1.

(6). The FSA can impose financial institution or Foundation to make write-downs of mortgage assets, etc. for use by the materiality of the basic capital.

(7). Taken over control of a financial institution, which is covered by paragraph 3, 1. paragraph, by a natural or legal person, the money the institution's capital base no later than 3 months after the acquisition must meet the minimum capital requirement in accordance with paragraph 2 of the basic regulation. However, paragraph (3), 2. PT.

(8). For the solvency requirement must be fulfilled mortgage companies both in the individual series with series reserve funds and the Department in General.

section 125. Stockbroking firms and investment management companies ' Board and management should ensure that the company has a sufficient capital base and has internal procedures for risk measurement and risk management for ongoing assessment and maintenance of a capital base of a size, type, and distribution, as is appropriate to cover the company's risks.

(2). The basic capital of stockbroking firms and investment management companies must be at least





1) 8 per cent of risk-weighted items (the solvency requirement), see. However, paragraph 5,

2) 1 million. Euro (minimum capital requirement) for stockbroking companies which want to become a member of a regulated market, a central securities depository or Clearinghouse, in which the company participates in clearing and settlement, or want to perform one or more of those in annex 4, section A, point 1. 3, 6, 8 and 9, and section B, nr. referred services

3) 1 million. Euro (minimum capital requirement) for investment management companies that want to become a member of a regulated market, or who want to store and manage the in annex 5, nr. 3, instruments listed, including being a member of a central securities depository or Clearinghouse, in which the company participates in clearing and settlement, see. However, paragraph 3, and

4) 0.3 mio. Euro (minimum capital requirement) for other stockbroking firms and investment management companies, see. However, paragraph 3.





(3). Investment management companies shall, in addition to the requirement set out in paragraph 2, no. 3 and 4, take into account a supplement to the minimum capital requirement at 0.02% of the part of the company's portfolio, see. § 141, in excess of 250 million. euro. In paragraph 2, no. 3, said companies may, by statement of the charge make an allowance of 875,000 euros, and in paragraph 2, no. 4, said companies can make an allowance of 175,000 euro. The appendix may not exceed EUR 10 million. euro. Investment management companies shall annually adjust the additional capital based on the audited financial statements. The adjustment must be carried out before 1 July. June the following year.


(4). The Danish financial supervisory authority may allow up to 50 per cent of the charge referred to in paragraph 3 may be made in the form of a guarantee by a credit institution or an insurance company. The credit institution or insurance undertaking must have its registered office in a country within the European Union, in a country with which the community has entered into an agreement in the financial field, or in a country with which the community has not concluded such an agreement with, but who have supervisory rules similar to the rules of the European Union.

(5). A stockbroking company and an investment management company shall notwithstanding the requirements of paragraphs 2 and 3 have a capital base of at least a quarter of the previous year's fixed overheads. The Danish financial supervisory authority may adjust that requirement in the event of a substantial change in the company's business since the preceding year. A company has not been in operation for 1 year, it must have a capital base of at least a quarter of the fixed overheads, which appear on the business plan for the first years of operation, unless this plan required changed by the FSA.

(6). Stockbroking companies that do not have permission to the activities referred to in annex 4, section A, point 1. 2 and 4, as well as investment management companies can calculate risk-weighted items exclusive risk-weighted items for operational risk, see. section 142, paragraph 1.

(7). Stockbroking firms and investment management companies ' Board and management must, in the light of the assessment referred to in paragraph 1, determine the company's individual solvency needs. The solvency requirements shall be expressed as the basic capital as a percentage of risk-weighted items. Solvency requirement can not be less than the solvency requirement referred to in paragraph 2, no. 1, the minimum capital requirement set out in paragraph 2, no. 2-4, and (3) or the requirement to base the capital referred to in paragraph 5.

(8). The Danish financial supervisory authority may set a higher individual solvency requirements than what is stated in paragraph 2, no. 1.

(9). The FSA can impose stock brokerage company or investment management company to make write-downs of assets, etc. for use by the materiality of the basic capital.

section 126. Insurance companies and lateral pension funds Board of Directors and the Management Board shall ensure that the company has a sufficient capital base and has internal procedures for risk measurement and risk management for ongoing assessment and maintenance of a capital base of a size, type, and distribution, as is appropriate to cover the company's risks.

(2). The basic capital of insurance companies and lateral pension funds must be at least





1) 4 per cent of risk-weighted items for mathematical provisions conferred on 0.3% of risk-weighted items at risk for life-assurance in class I-IV and VI, in which the company has an investment risk,

2) 1 per cent of risk-weighted items for mathematical provisions conferred on 0.3% of risk-weighted items at risk for life-assurance in class V and class III, in which the company does not have an investment risk, and where the amount to be cover in the insurance contract provided for operating costs, fixed for a period exceeding 5 years,

3) 25 per cent of the last financial technical administrative expenses attributed to 0.3% of risk-weighted items at risk for life-assurance in class III, in which the company does not have an investment risk, and where the amount intended to cover the operating costs in the insurance contract provided, not fixed for a period exceeding 5 years,

4) 25 per cent of the total administrative costs for separate last financial SP-accounts

5) the highest amount in property and casualty insurance company of





a) 18 per cent of risk-weighted items for the maximum of gross premiums and gross premiums earned up to 53.1 million. 16 per cent of the amount attributed to the euro in addition, and

(b)) the annual average of 26 per cent of risk-weighted items of gross claims incurred for amounts up to 37.2 million. euro and 23 per cent of the amount in addition to this, in the past 3 financial years,





6) 3.2 mio. Euro for insurance companies and lateral pension funds, which operates life insurance company,

7) 2.2 million. Euro for insurance companies and lateral pension funds engaged in classes 1-9 and 16-18,

8 3.2 million). Euro for insurance undertakings conducting classes 10-15,

9) 3 million. Euro for insurance undertakings conducting reinsurance activities, and

10) 1 million. Euro for the captives.





(3). Represents the sum of the solvency requirement in paragraph 2, no. 1-5, the said amount.

(4). The minimum capital requirement shall constitute the largest of the amounts referred to in paragraph 2, no. 6-10.

(5). In the case of a mutual insurance companies subject to paragraph 2, no. 7 or 8, the minimum capital requirement is reduced on detailed conditions.

(6). In the case of mutual insurance companies covered by paragraph 2, nr. 7 or 8, which fulfils the conditions set out in paragraphs 5 and 7, the minimum capital requirement is reduced to the greatest amount of





1) 0.225 million. euros for a permit for class 1-8, 16 and 18 and

2) 0.15 mio. euros for a permit for class 9 and 17.





(7). In order to benefit from the reduced capital requirements in paragraph 6 should be a mutual insurance company in addition to the conditions set out in paragraph 5 also satisfy the following conditions:





1) the statutes shall provide for calling up additional contributions or reducing their benefits;,

2) the last financial gross premiums earned shall not exceed 5 million. euro,

3) the company shall not be permitted for class 10-15, and

4) at least half of the last financial year gross premiums earned must come from insurance, where policyholders are natural persons who are members of the company.





(8). Insurance companies and lateral pension funds Board of Directors and the Executive Board shall, on the basis of the assessment referred to in paragraph 1, determine the company's individual solvency needs.

(9). The Danish financial supervisory authority may set a higher individual solvency requirement than that contained in paragraph 3.

section 127. The capital requirement is the largest of the solvency requirement and the minimum capital requirement in sections 124-126 to the financial business as well as for stockbroking firms and investment management companies also claim to base the capital of § 125, paragraph 5.

section 128. The basic capital is reduced core capital, see. §§ 129-131, attributed the reduced supplementary capital, see. section 135, and deducted from the amount under section 139.

(2). Core capital and revaluation reserve must be deducted from any kind of tax that can be predicted at the time the amount is calculated, or it must be duly adapted insofar as tax reduces the amount by which this capital may be used to cover risks or losses.

§ 129. Core capital of banks, building societies, stockbroking firms and investment management companies consists of





1) paid up stock-guarantee-or cooperative capital

2) share premium accounts,

3) reserves

4) transferred surplus or deficit

5) year current profit deducted from any form of tax, expected dividend and other predictable expenses, provided the amount is confirmed by the company's external auditors, see (3)

6) bottom savings bank reserve, see. § 211,

7) paid-up capital guarantee, subject to article 20. section 208 (2)

8) hybrid core capital, see. § 132 if the core capital of the basic regulation. Nr. 1-7, 9 and 10, after those in section 131, paragraph 1 and paragraph 2, no. 1, 4 and 5, the said deduction is at least 5 percent of the Foundation's money, mortgage credit Foundation, stockbroking firm or investment management company's risk-weighted items, etc.,

9) series reserve funds in mortgage-credit institutes in the series, where there is no repayment obligation to borrowers, as well as the part of the reservefondene series in sequences with repayable, see. section 25 of the law on mortgages and mortgage bonds, etc., who cannot get to the down payment, and

10) bottom Fund reserve of mortgage companies.





(2). Hybrid core capital pursuant to paragraph 1, nr. 8, must not exceed 15 per cent of core capital after the in section 131, paragraph 1 and paragraph 2, no. 1, 4 and 5 referred to deductions.

(3). Used the possibility of recognition of the year's current profits in core capital, see. (1). 5, the amount must be confirmed by the external auditors. The Danish financial supervisory authority may lay down detailed rules for the external auditors ' work actions in connection with confirmation.

(4). The external auditors in audit Protocol must inform about the work performed in accordance with paragraph 3. In this regard, there must also be informed of the Foundation's money, mortgage credit Foundation, stockbroking firm or investment management company's capital ratio before and after recognition of the year's current profits.


(5). A company that has made a securitisation, must not referred to in paragraph 1, no. 3, 4 and 6, said entries include net profits from the capitalisation of future income from the exposures that are part of the transaction, and which results in a credit improvement of company's balances with the concerned securitisation. By securitization for the purposes of this chapter, a transaction whereby the credit risk associated with an exposure or a pool of exposures is divided into segments, where payments in connection with the transaction depends on the evolution of the exposure or pool of exposures, and which segments mutually position determines the allocation of losses in the maturity of the transaction.

§ 130. Core capital in insurance companies and lateral pension funds consists of





1) equity,

2) member accounts in mutual companies and lateral pension funds, without prejudice. § 133,

3) special bonus provisions (type B) in life insurance companies and lateral pension funds, which satisfies the conditions laid down in § 134,

4) the value of tax assets, as it will be in a management situation. §§ 253-258, and

5) a positive or negative difference between the





a) an amount equal to the proportion of the basic capital of a subsidiary or an associate, who is a financial undertaking, which corresponds to the share of the company capital, and owned

(b)) the value of the stake is included in the balance sheet with the addition of the value of the equity loan, including equity loan from other business units, to the subsidiary or associated company, when equity loan be included in the subsidiary's or the associated undertaking's capital base under section 135 (1), nr. 1.









(2). Basic capital (1). 5 (a), is calculated before deductions for direct and indirect owned assets under section 131, paragraph 4, nr. 3, in so far as these assets are already covered by this provision of the basic capital of the owning company. If the concerned subsidiary insurance undertaking or associated insurance business in determining (1). 5, even holds daughter insurers or associated insurance companies is calculated base capital referred to in paragraph 1, no. 5 (a), before deductions for these companies ' capital requirements, when the companies ' capital requirements have already been deducted under section 131, paragraph 4, nr. 1.

(3). The Appendix referred to in paragraph 1, no. 5 may for each subsidiary or associated company, there is a financial business, up to a maximum equal to the amount of the relevant subsidiary or associate is deducted pursuant to section 131, paragraph 4, nr. 1 or 2.

(4). Guarantee capital in insurance companies and lateral pension funds must not be reduced without the consent of the Danish financial supervisory authority. Guarantee capital may be refunded in accordance with the rules laid down in the statutes. The Danish financial supervisory authority may determine that there is similar provision in land fund or another fund that is not without FSA authorisation must be reduced.

§ 131. Core capital will be reduced by





1) proposed dividend,

2) intangible assets and

3) tax assets, see. However, section 130 (1). 4.





(2). For banks, building societies, stockbroking firms and investment management companies for deduction in addition to the deduction referred to in paragraph 1





1 year continuously deficits),

2) half of the deductions pursuant to section 139, paragraph 1, no. 1-3,

3) half of the deductions pursuant to section 139, paragraph 1, no. 4-6,

4) the accumulated value change of hedging by securing payment flows and

5) the accumulated value change of liabilities at fair value as a result of the change in your own risk less any accumulated value changes of equivalent assets at fair value as a result of the same changes in your own risk.





(3). The adjustments referred to in paragraph 2, no. 4 and 5, can be positive or negative.

(4). For insurance companies and lateral pension funds deducted in addition to the deduction referred to in paragraph 1:





1) The proportion of the capital requirement in a subsidiary insurance undertaking or an affiliated insurance company, which corresponds to it directly or indirectly-owned shares of the insurance company's stock and guarantee capital.

2) The proportion of the capital requirement in a Bank, mortgage lender, stockbroking firm or investment management company which is a subsidiary or an associate, which corresponds to it directly or indirectly owned a share of the company capital.

3) For direct and indirect owned assets, representing a risk on a single company or group of companies that constitute a single risk: the amount by which the carrying amount of the assets in question in excess of a weighted sum of the company's capital requirements, its subsidiary insurers ' capital requirements and capital requirement in other subsidiaries subject to FSA supervision. The deduction shall not, however, be made for investment in subsidiaries and assets within the scope of § 162 (1) (8). 1-8. The weighted sum is calculated as follows:





(a)) If the insurer operates direct life assurance, a weighting of 75% or more of Other insurance companies are weighted with 100 per cent.

b) subsidiaries, which operates direct life assurance, a weighting of 75 per cent of its stake. Other subsidiaries are weighted with its stake.





4) an amount equal to the difference between the outstanding claims reinsurance share of technical provisions for compensation were deducted from the insurance class 3-18 before discounting and after discounting, if claims are discounted to take into account the future investment return.





(5). For a financial undertaking which is a subsidiary or an associate, which does not have its registered office in Denmark, used in paragraph 4, no. 1 and 2, the capital requirements, obtained after the home Member State's rules, but at least the capital requirements that would be obtained if the company or the company had its registered office in Denmark.

(6). The Danish financial supervisory authority may in exceptional cases and for a limited period exempt from deduction in core capital pursuant to paragraphs 4, nr. 3.

(7). Insurance companies must in core capital to deduct direct and indirect owned shares in subsidiary and associated financial institutions, see finansieringsinstitutter. However, 2. and (3). PT shares in financial institutions, there are financial services companies, and financial institutions, which have as main company to acquire shares or tradable mortgages or to carry out transactions for own account with one or more of the instruments listed in annex 5, should not be deducted. Indirectly-owned shares is the deduction of a subsidiary insurance undertaking or an affiliated insurance company after 1. point, or which is the deduction of a subsidiary undertaking which is a credit institution, stockbroking company or investment management company or an affiliated credit institution, stockbroking firm or investment management company pursuant to section 139, paragraph 1, no. 2, or (2). 1, should not be deducted. The Danish financial supervisory authority may, in exceptional cases, exempt from it in 1. paragraph referred to deductions.

(8). The proportion of the capital requirement or the shares in subsidiaries and associated companies shall not be deducted from the basic regulation. paragraphs 4 and 7, when the companies are acquired temporarily and the acquisition has taken place as part of a reconstruction.

§ 132. Hybrid core capital is included in the base capital for banks, building societies, stockbroking firms and investment management companies, provided that the following conditions are met:





1) the amount must be paid into the Bank, mortgage credit Foundation, stockbroking firm or investment management company.

2) Debt must not fall on a prior agreed time.

3) the debt shall only become due if the Bank, mortgage credit Foundation, stockbroking firm or investment management company shall enter into liquidation or is declared bankrupt.

4) Debt may only be refunded on the Foundation's money, mortgage Foundation, stockbroking firm or investment management company's initiative and with the FSA authorisation not earlier than 10 years after the deposit, however, so that the Danish financial supervisory authority in special circumstances may allow repayment no earlier than 5 years after its date of issue.

5) the lender's claims against the Bank, mortgage credit Foundation, stockbroking firm or investment management company must be subordinated to those of all non efterstillet debt as well as the capital referred to in section 136.

6) the lender's claims against the Bank, mortgage credit Foundation, stockbroking firm or investment management company may not be covered by the security lodged by the Bank, mortgage credit Foundation, stockbroking firm or investment management company or the article 181, paragraph 1 referred to companies or otherwise be guaranteed a right of first refusal in relation to Bank, mortgage Foundation, stockbroking firm or investment management company's other creditors.


7) rate of return on debt lapse if the Bank, mortgage credit Foundation, stockbroking firm or investment management company does not have distributable reserves in relation to the last annual report.

8) interest rate must not be altered on the basis of the creditor's assessment of the Bank, mortgage credit Foundation, stockbroking firm or investment management company.

9) Payments of interest can be deferred, if the base capital at maturity does not exceed the capital requirement.

10) unpaid interest that is deferred by virtue of no. 9, may only become due for payment if the capital requirement on new compliance.

11) company's top authority must be able to write down the hybrid core capital and unpaid interest, if the equity is lost and the stock-guarantee-or andelskapitalen is written down to zero, or if the equity in series reserve funds in the mortgage Department is lost.

12) Agreements in connection with the debt agreement must not provide for an increase in interest rates on more than the highest of:





(a)) 100 base points deducted from the swap spread, see. paragraph 2, and

(b) 50 per cent of the credit spread), see. paragraph 3, minus the swap spread.





13) Agreements in connection with the debt agreement must provide for only one increase in interest rates. Interest rate rise may occur no earlier than 10 years after its date of issue.





(2). Swap spreads (1). 12 (a), shall be determined on the day of issue as the difference between the interest rate increase comes interest rate basis and issuing process initial interest basis.

(3). Credit spread in (1). 12, point (b) shall be determined on the date of issue thereof as the difference between the initial interest and the initial interest basis.

(4). Acquisition of own hybrid core capital to own at more than 2 per cent of the issued capital must be approved by the Danish financial supervisory authority in accordance with paragraph 1, nr. 4. The inventory of own hybrid core capital as well as its own hybrid core capital, which serves as security for loans or guarantees granted by the Bank, mortgage credit Foundation, stockbroking firm or investment management company may not be counted in determining the basic capital.

(5). Depreciation in accordance with paragraph 1, nr. 11, can only happen if the Bank, mortgage credit Foundation, stockbroking firm or investment management company after following either recapitalised, so the requirement is met, or terminates without loss for the not efterstillede vendors. The hybrid core capital and unpaid interest may only be decreased by an amount, as approved in advance by the external auditors and the financial supervisory authority.

(6). The Danish financial supervisory authority may, in exceptional cases, grant derogations from the limit in paragraph 1, no. 12 (a).

section 133. Member accounts can be included under section 130 (1). 2 If the following conditions are met in the statutes:





1) in the event of liquidation or bankruptcy may amount not be repaid, before all the other debts are paid.

2) in other cases, the amount must be repaid only if the basic capital is not thereby be reduced to an amount that is lower than the capital requirement.

3) repayment that is caused by anything other than termination of membership, may only be made when the Danish financial supervisory authority not later than 1 month in advance is informed thereof. Reimbursement may be denied by the FSA.

4) change in the statutes provisions for members ' accounts must be approved by the FSA.





section 134. For special bonus provisions (type B) after section 130 (1). 3, which is part of the technical provisions apply:





1) they are for all or part of the company's insurance built by funds from the forsikringernes portion of the realized outcome, without prejudice. Article 20, paragraph 1, no. 3.

2) they are attached to the assurances, individually or collectively, in such a way that the individual insurance share with associated return, see. Nr. 5, at any time can be calculated.

3) They shall not be reduced as part of the stock of insurance contracts in the calculation of the share of the realized outcome, without prejudice. Article 20, paragraph 1, no. 3, which shall be supplied with the stock.

4) transfer to the individual insurances of the insurance schemes should be carried out at the latest at the same time share with attached receipt of benefits under the insurance policy.

5) they are assigned the same proportionate return as the yield on an ongoing basis, stockholders ' equity get before taxes, whether this return is negative or positive.

6) The individual and collective share the proportional regulation. Nr. 2, can be included at the termination of the insurance and need to be fully incorporated in the calculation of the surrender values and by transfers from one company to another by changing jobs, see. Article 20, paragraph 1, no. 7. The proportion must be compared to the proportion that the insured person has contributed to the construction of. Special bonus provisions, however, may only be included if the company meets the solvency requirement in article 248, paragraph 3, nr. 3.

7) the company must comply with the information obligation, which is incumbent on companies whose securities are admitted to trading on a regulated market in § 27, paragraph 1, of the law on securities trading etc.





section 135. The additional capital consists of





1) equity loan, see. section 136,

2) revaluation reserve for banks, building societies, stockbroking firms and investment management companies,

3) hybrid core capital, see. section 132, which is not included in the core capital

4) a positive amount obtained by from the accounting value adjustments and provisions on the non-trading book assets and liabilities except capital assets covered by a securitisation, securitisationpositioner and tangible assets without counterparts can be subtracted from the inventory of the expected losses on the assets and liabilities referred to in article 6. section 143 (1) (8). 7,

5) that part of the series reservefondene in mortgage companies in series with repayable, which correspond to the requirement of section 124 (8)

6) not paid guarantee capital for DLR Credit a/s,

7) allowances for possible supplementary premium in mutual property and casualty insurance companies, see. section 137, and

8) special bonus provisions (type A) in life insurance companies and lateral pension funds, which satisfies the conditions laid down in section 138.





(2). Supplementary capital in accordance with paragraph 1, nr. 4, included only for assets and liabilities where risk-weighted items outside the trading book is calculated using an internal method, see. section 143, paragraph 3, and shall not exceed 0.6 per cent of risk-weighted items of assets and liabilities, which are the subject of the internal method.

(3). The additional capital must for banks, building societies, stockbroking firms and investment management companies shall not be taken into account by more than 100 percent of core capital after deduction under section 131, paragraph 1 and paragraph 2, no. 1, 4 and 5.

(4). For insurance companies and lateral pension funds can the additional capital shall be taken into account with an amount equal to the lesser of





1) 100 percent of core capital after deduction,

2) half of the capital requirement.





(5). The responsible loan with fixed maturity in insurance companies and lateral pension funds may not exceed an amount equal to the lesser of





1) one third of the core capital after deduction,

2) one quarter of the capital requirement.





section 136. Equity loan are included in the base capital, if the following conditions are met:





1) lender's requirements must be subordinated to those of all non efterstillet debt.

2) Amount to be paid.

3) repayment before maturity may not be possible on the lender's initiative or without the FSA authorisation.

4) Amount shall only become due before the agreed repayment date, unless the financial company shall enter into liquidation or is declared bankrupt.

5) the company's Supreme authority must be able to write down the relevant equity loans and unpaid interest, if the equity is lost and the stock-guarantee-or andelskapitalen is written down to zero, or if the equity in series reserve funds in mortgage credit institutions is lost.

6) payment of interest can be deferred, if the base capital at maturity does not exceed the capital requirement.

7) unpaid interest that is deferred by virtue of no. 6, may only become due for payment if the capital requirement on new compliance or the due date occurs.

8) For the insurance companies and lateral pension funds,





(a)) the original maturity is at least 5 years and

b) changes in the loan agreement must be approved by the FSA.









(2). Authorisation in accordance with paragraph 1, nr. 3 is subject to the condition that the basic capital for repayment is not lower than the capital requirement.

(3). Depreciation in accordance with paragraph 1, nr. 5, can only happen if the financial business after following either recapitalised, so the requirement is met, or will terminate without any loss of non-subordinated creditors. The responsible equity loans and unpaid interest may only be decreased by an amount, as approved in advance by the external auditors and the financial supervisory authority.

(4). The responsible loan capital is reduced by






1) 25 per cent of the issued capital, when there is less than 3 years and more than 2 years to decay,

2) 50 per cent of the issued capital, when there is less than 2 years and more than 1 year or to decay,

3) 75 per cent of the issued capital, when there is less than 1 year to decay,

4) holding of own equity loan and a private equity loan pledged as security for loans or guarantees, reduced after no. 1-3.





(5). Interest rate rises on equity loan may not take place until 3 years after issuance. If that is agreed upon one or more increases in interest rates, is considered the responsible loan to become due at the time of interest rate increase, if the sum of the interest rate increases in excess of 150 basis points were deducted from the swap spread, see. section 132 (2).

(6). The Danish financial supervisory authority must approve the acquisition of own equity loan at more than 2 per cent of the issued capital.

(7). The Danish financial supervisory authority may, in exceptional cases, grant derogations from the limit in paragraph 5, 2. PT.

section 137. The Danish financial supervisory authority may, on application, allow the appendix for possible supplementary premium in mutual property and casualty insurance companies can be counted under section 135 (1), nr. 7, if the prize is variable according to the concluded insurance contract, so that the premium may be increased taking into account insurance stock risk pathways, and if the additional premium could be required to pay the insured in the course of the year.

(2). Amount referred to in paragraph 1 may not be included as from end-of-the year in which the additional premium may be charged.

(3). Amount referred to in paragraph 1, who is required to pay the policyholder may not be counted under section 135 (1), nr. 7.

section 138. For special bonus provisions (type A) under section 135 (1), nr. 8, which is part of the technical provisions apply:





1) they are for all or part of the company's insurance built by funds from the forsikringernes portion of the realized outcome, without prejudice. Article 20, paragraph 1, no. 3.

2) they are attached to the assurances, individually or collectively, in such a way that the individual insurance share with associated return, see. Nr. 5, at any time can be calculated.

3) They shall not be reduced as part of the stock of insurance contracts in the calculation of the share of the realized outcome, without prejudice. Article 20, paragraph 1, no. 3, which shall be supplied with the stock.

4) transfer to the individual insurances of the insurance schemes should be carried out at the latest at the same time share with attached receipt of benefits under the insurance policy.

5) they are assigned on a continuous basis a rate of return based on an interest rate of the company is established for the purpose of that remuneration must correspond to what equity loan could have on commercial terms.

6) they can be used to cover all the company's losses and any non efterstillet claims against company when the equity is lost.

7) The individual and collective share the proportional regulation. Nr. 2, can be included at the termination of the insurance and need to be fully incorporated in the calculation of the surrender values and by transfers from one company to another by changing jobs, see. Article 20, paragraph 1, no. 7. The proportion must be compared to the proportion that the insured person has contributed to the construction of. Special bonus provisions, however, may only be included if the company meets the solvency requirement in article 248, paragraph 3, nr. 3.

8) the company shall comply with the disclosure obligation incumbent on companies whose securities are admitted to trading on a regulated market in accordance with article 27, paragraph 1, of the law on securities trading etc.





§ 139. By statement of basic capital in financial institutions, mortgage companies, stock brokerage firms and investment management companies deducted half of the following amounts:





1) The proportion of the capital requirement in a subsidiary insurance undertaking or an affiliated insurance company, which corresponds to it directly or indirectly-owned shares of the insurance company's stock and guarantee capital. The insurance company does not have its registered office in Denmark, used to calculate the capital requirement that appears after the home Member State's rules, but at least the capital requirements that would be obtained if the insurance company had its registered office in Denmark. The deduction after 1. paragraph shall be reduced by an amount equal to the difference between





a) an amount equal to the share of a subsidiary or an affiliated insurance company forsikringsselskabs capital base, which corresponds to the share of the company capital, and owned

(b)) the value of the stake is included in the balance sheet with the addition of the value of the equity loan, including equity loan from other business units, to subsidiary insurance undertaking or the associated insurance company when the equity loan is included in the forsikringsselskabets or the associated insurance company subsidiary capital base under section 135 (1), nr. 1.





2) holdings in other credit and financial institutions, which represent more than 10 percent of their stock-guarantee-or cooperative capital, which are not covered by paragraph 2, nr. 1, of the basic regulation. However, paragraphs 7 and 8. In addition, the Foundation's money, mortgage Foundation, for deduction stockbroking company and investment management company's subordinated capital in those institutions.

3) The amount equal to the sum of the capital shares and subordinated capital in other credit and financial institutions, which are not covered by nr. 2 or (2). 1, which exceeds 10 percent of the basic capital before deduction under point 1. 1 and 2 and paragraph 2 of the basic regulation. However, paragraphs 7 and 8.

4) a negative amount obtained by from the accounting value adjustments and provisions on the non-trading book assets and liabilities except capital assets covered by a securitisation, securitisationpositioner and tangible assets without counterparts can be subtracted from the inventory of the expected losses on the assets and liabilities referred to in article 6. section 143 (1) (8). 7.

5) an amount equal to the expected losses on equity securities non-trading book, when calculating the risk-weighted items for equity securities non-trading book is calculated on the basis of simple risk weights or for the more advanced method based on calculation of risk parameters (PD/LGD approach), see. section 143 (1) (8). 7.

6) the amount corresponding to the value of transferred payments, securities, foreign exchange and commodities in the case of trades with delivery risk and supplements for any positive value of the contract, when the counterparty's delivery or payment has not been effected 5 days after the end of the decay.





(2). In addition to the deduction referred to in paragraph 1 shall be deducted from the following:





1) Directly and indirectly-owned shares in subsidiaries and associated companies which are credit institutions, stockbroking companies, investment management firms and financial institutions, see. However, 2. paragraph and paragraphs 7 and 8. Shares in financial institutions, whose principal activity is to acquire shares or tradable mortgages or to carry out transactions for own account with one or more of the instruments listed in annex 5, should not be deducted. Indirectly-owned shares, as is the deduction of a subsidiary insurance undertaking, credit institution, stockbroking company or investment management company or an associated company, credit institution, insurance, stockbroking firm or investment management company in accordance with paragraph 1, nr. 2, or section 131, paragraph 4, nr. 2, and indirectly-owned shares, which are deducted or exempted by a subsidiary insurance undertaking or an affiliated insurance company pursuant to section 131, paragraph 7, shall not be deducted.

2) The amount equal to the sum of the shares in another company or companies in the same group, as well as mortgaged shares in another company, which are not covered by nr. 1 and (1) (8). 1-3, which exceeds 15 per cent of the capital base after deductions under point 1. 1 and paragraph 1 of this article, see. However, paragraphs 8 and 9, and without allowance under section 135 (1), nr. 4, and deduction pursuant to paragraph 1, nr. 4 and 5.

3) the amount equal to the sum of qualifying holdings in other companies, which are not covered by nr. 1 and 2 and paragraphs 1, nr. 1-3, and in excess of 60 per cent of the capital base after deductions under point 1. 1 and paragraph 1 of this article, see. However, paragraphs 8 and 9, and without allowance under section 135 (1), nr. 4, and deduction pursuant to paragraph 1, nr. 4 and 5.





(3). The reduction in the deduction referred to in paragraph 1, no. 1, may not, however, exceed the deductions made in accordance with paragraph 1, nr. 1, 1. PT.

(4). The amount in (1). 1, point (a) is calculated before deductions for direct and indirect owned assets under section 131, paragraph 4, nr. 3, in so far as these assets are already covered by this provision of the basic capital of the owning company. If the concerned subsidiary insurance undertaking or associated insurance business in determining (1). 1 (a) and (b) even holds daughter insurers or affiliated insurers, are assessed basic capital in section 130 (1). 5 (a), before deductions for these companies ' capital requirements, when the companies ' capital requirements have already been deducted under section 131, paragraph 4, nr. 1. The amount referred to in paragraph 1, no. 1, point (a) shall be determined, moreover, before deductions pursuant to section 131, paragraph 4, nr. 2 If the undertakings included in a consolidation after chapter 12.


(5). In paragraph 1, no. 4 and 5, shall be included only for assets and liabilities where risk-weighted items outside the trading book is calculated using an internal method, see. section 143, paragraph 3.

(6). If the deductions referred to in paragraph 1 is greater than the additional capital, the excess shall be deducted from share in core capital.

(7). Shares in credit and financial institutions shall not be deducted from the capital base, when the shares have been acquired temporarily and the acquisition has taken place as part of a reconstruction. The proportion of the capital requirement in a subsidiary insurance undertaking or an affiliated insurance company, see. (1). 1, shall also not be deducted, if the company is acquired temporarily and the acquisition has taken place as part of a reconstruction.

(8). Shares in credit and financial institutions, which together with the Bank, mortgage credit Foundation, stockbroking firm or investment management company is subject to the consolidation of the basic regulation. Chapter 12, should not be deducted from the capital base. This shall also apply for subordinated capital in the credit and financial institutions covered by the consolidation.

(9). In determining the amounts referred to in paragraph 2, no. 2 and 3, also included the stock purchase and aktiesalgs businesses, etc.

section 140. In mortgage companies can claim to base the capital in series with repayable, opened before the 1. January 1973, met with the in section 135 (1), nr. 5, referred to the capital.

(2). In series with repayable, opened before the 1. January 1973, can the in section 129 (1). 9, said capital that are not devoted to coverage of the claim to the franchise's capital base, be counted as core capital by the fulfillment of the requirement to base capital for mortgage credit Institute in General.

§ 141. Investment management company's portfolio, see. section 125 (3), included assets in funds investment management company is authorized to administer.

(2). Portfolios, such as investment management firm has been assigned to manage in accordance with the rules of delegation, shall not be taken into account for the company's portfolio, see. § 125, paragraph 3.

section 142. By risk-weighted items for banks, building societies, stockbroking firms and investment management companies shall be taken to mean a measure of the overall risk of losses associated with the company's activities. This objective resulting from the application of risk weights for the inventory of items with credit risk, equity risk, interest rate risk, currency risk, commodities risk, operational risk and risk on tangible assets, etc.

(2). By risk-weighted items for insurance companies and lateral pension funds shall be taken to mean Transactions that are adjusted for the insurance type, maturity, special conditions in reinsurance, average premium basis, administration costs and replacement costs as well as other items in the capital at risk.

section 143. The Danish financial supervisory authority shall lay down detailed rules for





1) statement of the risk-weighted items,

2) inventories under section 124, paragraphs 1 and 4, article 125, paragraph 1 and 7, and section 126 (1) and (8)

3) reporting of the risk-weighted items, capital requirement, solvency requirements and capital base,

4) inventory of stock purchase and aktiesalgs businesses, etc.,

5) inventory of the company's fixed costs, see. section 125 (5)

6) conditions for the reduction of the minimum capital requirement, see. section 126 (5)

7) statement of the difference between the expected loss and the accounting value adjustments and provisions of the basic regulation. section 135 (1), nr. 4, and section 139, paragraph 1, no. 4, and expected loss amounts under section 139, paragraph 1, no. 5, and

8) information obligations on capital ratio.





(2). The Danish financial supervisory authority may lay down detailed rules for the banking institutions, mortgage institutions, stockbroking firms and investment management companies ' disclosure obligation to the customers on their rating.

(3). For banks, building societies, stockbroking firms and investment management companies can risk-weighted items, see. (1). 1, also was assessed through the use of internal methodologies for the calculation of risk-weighted items. Use of internal methods require the permission of the FSA. The Danish financial supervisory authority shall lay down detailed rules on the authorisation of the use of internal methods.

Special rules on compulsory acquisition for banks

§ 144. In a financial institution that does not meet the solvency requirement in section 124, (2). 1, and paragraph 5, and where the FSA has set a time limit under section 225, paragraphs 1 and 3, the Board of Directors may, at the request of a shareholder, which owns 70 per cent or more of the shares in the Bank, decide by ordinary majority vote whether to redeem the remaining shareholders ' shares in the Bank. The same applies to cases where the request is made by a shareholder, which after a capital injection, which is part of a reconstruction plan, will own 70 per cent or more of the shares in the Bank, although the Bank as a result of the capital injection once again meets the solvency requirement in article 124, paragraph 2, no. 1, and paragraph 5. The Board's decision on the redemption of shares must be approved by the FSA. Redemption of shares must be made no later than 30 days after the request for 1. PT.

(2). The minority shareholders, who are the subject of a decision on the redemption of shares, see. paragraph 1, shall in writing requested no later than 3 days after receipt of the request to transfer their shares to the shareholder referred to in paragraph 1. The request shall indicate the terms of redemption and the terms of reference for the redemption price. The value of Bank shares is determined based on market value of the shares auditor elected by the general Assembly of the Foundation's money.

(3). The purchase price must be paid or deposited no later than 3 days after the redemption is made applicable to shareholders. This also applies to the purchase price for the shares shall be convened in accordance with the Official Gazette referred to in article 6. the Danish public companies Act provisions.

(4). The redemption and transfer of shares shall be deemed final at the time of purchase price payment or deposit, see. (3). In the event of a dispute about pricing is to be determined this subsequent shares at the request of one of the parties of two of the Association of Chartered Accountants appointed auditors. The decision can be challenged before the Court of first instance within two weeks after receipt of the Auditors ' decision.

Chapter 11

The placing of funds and liquidity

Rules for banks and mortgage-credit institutions and stockbroking companies and investment management companies on the placement and liquidity

section 145. A commitment to the basic regulation. § 5 (1) (8). 16, with a client or group of connected clients must, after deduction of special safeguard requirements do not exceed 25 percent of the basic capital, see. section 128. Basis capital is calculated without surcharge under section 135 (1), nr. 4, and deductions pursuant to section 139, paragraph 1, no. 4 and 5.

(2). The sum of the exposures after deduction of special safeguard requirements represent 10 per cent or more of the basic capital, may not total exceed 800% of the basic capital.

(3). Exposures which represent 10 per cent or more of the basic capital, must be reported to the Danish financial supervisory authority on a quarterly basis.

(4). Exposures exceed the limits laid down in paragraph 1 or 2, the Danish financial supervisory authority promptly informed. The Danish financial supervisory authority may in exceptional circumstances allow, to the limit in paragraph 1 temporarily exceeded.

(5). They referred to in paragraphs 1 and 2 limits shall not apply to exposures to the undertakings included in the consolidation in full.

(6). Amount that is deducted in the base capital pursuant to section 139, paragraph 1, no. 1, shall not be included in exposures to subsidiaries or affiliated companies, which operates the business of insurance.

(7). Amount is deducted from the basic capital pursuant to section 139, paragraph 1, no. 2, and paragraph 2, no. 1 and 2, shall not be included in the exposure to the issuer of the shares.

section 146. Financial institutions, mortgage institutions, stockbroking firms and investment management companies ' shareholdings in other firms may not exceed 100% of the basic capital. Shares acquired for pool products is not included in the inventory in accordance with 1. PT.

(2). Stock purchase and aktiesalgs businesses must be taken into account in calculation of the limit pursuant to paragraph 1.

(3). Shares to be deducted in the base capital and shareholdings in undertakings included in the consolidation shall not be taken into account fully in the boundary in accordance with paragraph 1.

(4). The Danish financial supervisory authority may grant a derogation from the limit in paragraph 1.

§ 147. Banks, building societies, stockbroking firms and investment management companies cannot own property or have shares in real estate companies for more than 20 percent of the basic capital. For the banking and mortgage institutions real estate lending and guarantees to subsidiaries are included, there are real estate companies. Properties, as a financial institution, a mortgage lender, a stockbroking firm or an investment management company has acquired for away to do business or ancillary activities, however, are not covered by this provision.

(2). The Danish financial supervisory authority may grant a derogation from the provision in paragraph 1 1. PT.

§ 148. The Danish financial supervisory authority shall lay down detailed rules for





1) statement of commitment,

2) estimation of exposures of counterparties, which are backed by full or partial guarantee,


3) reporting of exposures that exceed 10 percent of the basic capital,

4) deductions in exposures for special requirements and ensure

5) inventory, reporting and limits for the total amount of currency and other market risks.





Special rules for financial institutions on the placement and liquidity

section 149. A financial institution must not have residual risks on leasing agreements, see. (2) if value along with real estate and capital shares covered by § 147 represent more than 25 percent of the basic capital.

(2). By residual risk on a lease agreement means the difference between the purchase price on leasing the asset and the present value of the lease holder's obligation to the Bank after the lease agreement.

(3). If a third party is liable for a portion of the residual risk, this share deducted on calculation of residual risk. Third party obligation must be attributed to their commitment under section 145.

(4). The Danish financial supervisory authority may derogate from paragraph 1.

section 150. Loan for subscription of shares, cooperative or guarantee capital of a financial institution in addition to 5 per cent of the total stock, cooperative or guarantee capital may only be granted if there are secured for the excess amount. Safety must be at least of the same character as special safeguard requirements.

§ 151. A savings bank may not acquire or receive own mortgage guarantor as evidence.

(2). A cooperative shall not acquire or which mortgage receive own cooperative evidence.

§ 152. A financial institution must have a sound liquidity regulation. (2). Cash flow must be at least





1) 15 per cent of the debt obligations, as it is the responsibility of the Bank, subject to whatever possible payout to pay on demand or with shorter notice than a month, and

2) 10% of the money the institution's overall debt and guarantee obligations excluding subordinated capital injections, which can be taken into account in the inventory of the basic capital.





(2). To cash flow, the following can be included:





1) cash in hand.

2) fully secure and liquid cash advances to credit institutions and insurance companies.

3) Inventory of secure, easy-to-sell, ubelånte securities and credit products.





(3). Are the requirements in paragraph 1 are not fulfilled, and will be the relationship not unraveled at the latest 8 days after the financial institution does not comply with the requirements, the financial institution must immediately report this to the Danish financial supervisory authority. The Danish financial supervisory authority shall set a deadline for fulfillment of the requirements.

section 152 (a). Financial institutions who have been granted permission to issue covered bonds, must establish and maintain a pool of assets shall be kept separate from money the Foundation's other assets. The total value of the assets shall at all times be at least the value of the issued covered bonds and mortgage security for each loan must at all times comply with the loan limit for doing so.

(2). If the value of the assets referred to in paragraph 1, no longer is at least equal to the value of the issued covered bonds or do not comply with the loan limit for doing so, the Bank must immediately provide additional security for the fulfilment of the claim and give the Danish financial supervisory authority thereof. Obligation to provide additional security as well as expenditure for loans offered in Denmark may not be imposed on the borrowers, if declining property values have triggered the requirement for the additional collateral.

(3). If the Bank does not ask additional security referred to in paragraph 2, to lose all bonds issued in that directory, see. § 152 g (1), the term special covered bonds. If the bonds subsequently again complies with the requirements for covered bonds, the FSA allow the bonds again are referred to covered bonds.

(4). The security lodged in accordance with paragraph 2 may not be challenged under section 70 or section 72 of the Bankruptcy Act. Marriage annulment can be done according to the rules, if the security is specifically not emerged as extraordinary.

section 152 (b). Financial institutions who have been granted permission to issue covered bonds, can borrow for use in order to meet the requirement to provide additional security.

(2). It must be stated in the loan agreement, which directory, see. § 152 g (1) borrow funds recorded in accordance with paragraph 1 shall be used as additional security for.

(3). Loan funds are recorded in accordance with paragraph 1 must be placed in the active types, referred to in section 152 c. The assets shall be from the date on which the loan is recorded, it is placed on a separate account, in a separate repository or otherwise labelled as coming from that loan.

section 152 c. The following asset types may be included as collateral for issuing covered bonds:





1) Loans secured by things like mortgages, see. section 152 (d).

2) Loans secured by ships registered in the Danish register of shipping, Danish International ship register or in another internationally recognized register of ships which offer equivalent security, see. section 152 (f), as well as bridging loans to use for financing of new or conversion of ships, which is granted without pledge in the ship.

3) debt securities or debt securities issued by or guaranteed by central Governments, central banks, public sector entities and regional or local authorities in a country within the European Union or a country with which the community has entered into an agreement on the financial area.

4) debt securities or debt securities issued by or guaranteed by central Governments, central banks, public sector entities, regional or local authorities in a country outside the European Union, which the community has not concluded an agreement with financial, multilateral development banks or international organizations, if the issuer is not efterstillede and unsecured debt a weighting of 0% in calculation of risk-weighted items, see. Annex VI of the directive relating to the taking up and pursuit of the business of credit institutions.

5) debt securities or debt securities issued by entities referred to in point 1. 3 and 4, where the issuer's non-subordinated and unsecured debt a weighting of 20% by the estimation of the risk-weighted items, see. Annex VI of the directive relating to the taking up and pursuit of the business of credit institutions. It is a condition that the value of these assets is included with, does not exceed 20% of the nominal amount of outstanding covered bonds of the issuer.

6) Bonds or debt instruments issued by credit institutions, provided that the relevant credit institutions not efterstillede debt and unsecured debt a weighting of 20% by the estimation of the risk-weighted items, see. Annex VI of the directive relating to the taking up and pursuit of the business of credit institutions. Bonds or debt securities issued by a credit institution in a country within the European Union or a country with which the community has entered into an agreement on the financial area, which has an initial duration of 100 days or less, may be included, if the credit institution does not efterstillede and unsecured debt are weighted with a maximum of 50 per cent by the estimation of the risk-weighted items, see. Annex VI of the directive relating to the taking up and pursuit of the business of credit institutions. The value that the assets mentioned in 1. and 2. paragraph concludes with, shall not exceed 15 per cent of the nominal amount of outstanding covered bonds of the issuer. The limit of 15% applies to the total commitment on the part of credit institutions in accordance with this number and nr. 7. Claims arising in connection with futures and redemptions of loan payments on secured by mortgage on immovable property, shall not be included in the limit of 15 per cent.

7) Other not efterstillede receivables from and guarantees made by credit institutions as referred to in point 1. 6. It is a condition that the value that these receivables and guarantees concludes with, does not exceed 15 per cent of the nominal amount of outstanding covered bonds of the issuer. The limit of 15% applies to the total commitment on the part of credit institutions under point 1. 6 and this number. Receivables arising in connection with futures and redemptions of loan payments on secured by mortgage on immovable property, shall not be included in the limit of 15 per cent.





(2). A specially covered bond may not be issued with security in both real estate and ships.

(3). The Danish financial supervisory authority may authorise the use of other assets as security for the issuance of covered bonds other than those referred to in paragraph 1, and may impose other limits on how large a part of the security for the bond issue the respective asset types may constitute, if such authorisation is in accordance with the provisions of the directive relating to the taking up and pursuit of the business of credit institutions.

section 152 (d). For loans secured by things like mortgages and granted on the basis of issuance of covered bonds applies the maturities, interest-only profiles and lending limits, as laid down in sections 3-5 of the law on mortgages and mortgage bonds, etc., see. However, paragraphs 2 and 3.

(2). For loans secured by things like mortgages and granted on the basis of issuance of covered bonds to properties subject to section 5, paragraph 1, of the law on mortgages and mortgage bonds, etc. apply sections 3 and 4 of the law on mortgages and mortgage bonds, etc., not if the loan limit does not exceed 75% 2)


(3). For loans secured by things like mortgages and granted on the basis of issuance of covered bonds to commercial real estate within the scope of § 5, paragraph 3, nr. 2 and 3, of the law on mortgages and mortgage bonds, etc., apply to the loan limit of 60% may be increased to 70 per cent, if additional security of at least 10 percent for the portion of the loan that exceeds 60 per cent of the value of the property. For loans to properties subject to section 5, paragraph 2, of the law on mortgages and mortgage bonds, etc. can borrow the limit of 70 per cent be exploited only if additional safety of at least 10 percent for the portion of the loan that exceeds 60 per cent of the value of the property.

(4). Accessories included in the scope of § 38 in tinglysningsloven may be included in the valuation of the property.

(5). Devices inlaid in a commercial property for the purposes of his operation may be included in the valuation. By agricultural property can the crew who belong to the property, to the extent that the crew is part of the continuous production, also included in the valuation. By borrowing against the value of the herd can farms included in the continuous production, maximum included with 30% of the value of land and buildings.

section 152 e. Loan with a mortgage granted on the basis of issuance of covered bonds should be ensured by separate mortgage letter and must not be granted against collateral in the form of ejerpantebreve and skadesløsbreve, see. However, paragraphs 2 and 3. It must be indicated in the letter, that the mortgage may be placed as security for a loan funded by the issuance of covered bonds.

(2). Mortgages in real estate, there are things like before the 1. July 2007, may be placed as security for loans financed by the issuance of covered bonds.

(3). The Danish financial supervisory authority may grant derogations from paragraph 1 in the loans granted for real estate that is located outside of Denmark, Faroe Islands and Greenland.

section 152 f. For loans secured by mortgages on ships can bank granting loans within 70 per cent of the value, as the ship to use for collateral is provided for. The maturity of the loans may not exceed 15 years on the loan disbursement date. For bridging loans can run time shall not exceed four years from the date of first disbursement. The determination of the maturity of loans must be made taking into account the ship type's average life span and the concrete ship's age and condition, etc.

§ 152 g. At financial institutions must be kept records of assets within the scope of sections 152 (a) and 152 (b), as well as the financial instruments which fulfil the conditions laid down in paragraph 2. A financial institution can lead one or more registers. A directory cannot contain assets that have security in both real estate and ships.

(2). Financial instruments must only be included in a register of assets, if they are used to hedge risks between assets entered in the register, on the one hand, and the issued covered bonds on the other side, and where it is in the agreement on the financial instrument is intended that money the Department's suspension of payments, bankruptcy or failure to comply with the obligation to provide additional security under section 152 (a) (2) is not the default reason.

(3). Assets, including financial instruments, in a directory is to the satisfaction of the holders of the covered bonds and the counterparties with whom the financial instruments have been concluded, and then to the satisfaction of loans recorded under section 152 (b), paragraph 1.

(4). The Bank shall report to the FSA, which assets, etc. are included in the register. The Danish financial supervisory authority or the FSA authorises it, verifies the existence of these assets.

§ 152 h. FSA sets out detailed rules concerning





1) valuation of the issued covered bonds and the continuous inventory of the assets ' value in relation to the particular covered bonds,

2) the valuation of the assets, there is security for the issuance of covered bonds, see. section 152 c (1)

3) under what conditions eligible for bridging loans to new or conversion of ships, see. section 152 c, paragraph 1, no. 2,

4) device, registration and control of the presence of assets in the registers referred to in article 6. § 152 g,

5) banks ' provision of loans financed by the issuance of covered bonds with a mortgage in cases where there is no annotation-free things like mortgage letter, as well as what alternative securities which can be made in such cases, and

6) limitation of risks in connection with the issuance of covered bonds, including interest-rate risks, currency risks and options risks.





Special rules for mortgage lenders on the placement and liquidity

§ 153. A mortgage lender must at least have placed money in the following assets equal to 60 per cent of the demand for mortgage credit institution's capital base with the addition of funds in series with the repayment obligation, which is not included in the base capital:





1) Deposits in central banks of zone A.

2) Bonds and debt securities issued by or guaranteed by Governments or regional authorities in zone a.

3) mortgage bonds and other debt securities issued by a credit institution in a country within the European Union or a country with which the community has entered into an agreement on the financial area, which offer equivalent safety.

4) debt securities admitted to trading on a regulated market issued by international organizations as a member have at least one of the Member States of the European Union.





(2). The Danish financial supervisory authority may in exceptional circumstances allow, to limit as referred to in paragraph 1 shall be waived if the mortgage Department is consolidated with another mortgage lender.

§ 154. Products in the series must not be nested as hybrid core capital or equity loan in other series or in the mortgage Department in General.

(2). Funds in the mortgage Department, moreover, must not be nested in series such as hybrid core capital or equity loan, unless there is at least recorded hybrid core capital or equity loan of a similar amount in mortgage credit Institute in General.

§ 155. (Repealed)

Special rules for stockbroking firms and investment management companies on the placement and liquidity

section 156. Cash flow, see. section 152 (2) of stockbroking firms and investment management companies must be sound.

(2). The Danish financial supervisory authority may demand an increase in liquidity, if this is not deemed to be sound.

(3). The Danish financial supervisory authority shall set a time limit for the fulfilment of the requirement laid down in paragraph 2.

section 157. Stockbroking companies that do not have permission to perform acting on their own behalf, without prejudice. Annex 4, section A, point 1. 3, and investment management companies can place the company's basic capital in shares and debt securities which are admitted to trading on a regulated market, as well as in units of mutual funds, specialist associations, fåmandsforeninger and professional associations apart from business development associations, see. section 109 of the Act on investment associations and special associations and other collective investment schemes, etc.

Special rules for insurance corporations and pension funds of funds placement and liquidity

§ 158. The funds, an insurance corporation or pension fund has at its disposal, must be invested in an appropriate and timely way of the insured, so that's reassuring assurances that the company can meet its obligations at any time.

§ 159. Insurance corporations and pension funds must have a group of assets, if the total value at any time is at least equal to the value of its total technical provisions.

(2). The assets covered by paragraph 1 shall be selected in such a way that, seen in relation to the nature of the company's insurance policies, in terms of security, return and liquidity is of such a nature and such a composition, that they are suitable to ensure that the insured can be repaid. There must not be a disproportionate dependence on a particular category of asset, investment market or a specific investment.

section 160. In accordance with the provisions of this chapter are assessed the assets in accordance with the following rules:





1) Assets is calculated and adjusted on an ongoing basis in accordance with the rules established for annual reports under section 196.

2) to be made deductions for any defective part, and lending can only enter a value obtained after deduction of the liabilities which can be offset against the borrower.

3) Financial contracts, which reduces the risk of the assets cannot cover the technical obligations, must be included with the value of such contracts in asset value.

4 uforfaldne interest Receivable of assets) within the scope of § 162 (1) (8). 1 – 4, 6, 7, 9 and 11-14, shall be taken into account in the asset value.





§ 161. In accordance with the provisions of this chapter are assessed the technical provisions in accordance with the following rules:





1 provision for unearned premiums is calculated and adjusted on an ongoing basis), in accordance with the rules established for annual reports under section 196.

2) Provisions are stated gross of direct underwriting.


3) The share of technical provisions for insurance, which is matched by indirect deposits with ceding undertakings, be deducted.

4) up to one-half of the receivable overdue premiums deducted.





section 162. The following asset types may be included among the assets subject to section 159, paragraph 1:





1) debt securities or debt securities issued by or guaranteed by Governments or regional authorities in zone a.

2) debt securities admitted to trading on a regulated market in a country within the European Union or in a country with which the community has entered into an agreement on financial matters, or similar markets in other countries, and which is issued by international organizations as a member have at least one of the Member States of the European Union.

3) mortgage bonds, covered bonds and covered bonds issued by mortgage companies, financial institutions or ship finansieringsinstituttet and other bonds issued in a country within the European Union or a country with which the community has entered into an agreement on the financial area, which offer equivalent safety.

4) Receivables, other than receivables, which are subordinated to other creditors, and advances to credit institutions and insurance companies under public supervision in countries covered by the zone A as well as other receivables guaranteed by credit institutions or insurance undertakings under public supervision in countries covered by the zone A.

5) Reasons, residential properties, Office and commercial premises as well as other properties whose value is independent of a particular commercial exploitation.

6) Loans secured by things like mortgages in the buildings, which are covered by the No. 5, for an amount of up to 80 per cent of the latest real estate assessment for residential properties and 60 percent for estates.

7) Loans against security in own life insurance policies within their repurchase value.

8) Shares in





a) UCITS within the scope of Community law, money market funds, UCITS funds and approved fåmandsforeninger or departments referred to in article 6. Act on investment associations and special associations and other collective investment schemes, etc.,

(b) placement associations and professional associations) or departments in the statutes have provisions on instruments and risk diversification, which are equivalent to those applicable to mutual funds, money market funds and UCITS associations, or provisions on risk diversification, corresponding to the rules in section 106 (3) and (4) of the Act on investment associations and special associations and other collective investment schemes, etc., and

c) other associations or departments, if these associations in their statutes have provisions on instruments and risk diversification, which are equivalent to those applicable to mutual funds, money market funds and UCITS associations, or provisions on risk diversification, corresponding to the rules in section 106 (3) and (4) of the Act on investment associations and special associations and other collective investment schemes, etc.





9) Other bonds and loans admitted to trading on a regulated market in a country within the European Union or in a country with which the community has entered into an agreement on financial matters, or similar markets in other countries covered by the zone A.

10) shares admitted to trading on a regulated market in a country within the European Union or in a country with which the community has entered into an agreement on financial matters, or similar markets in other countries covered by the zone A.

11) Properties that are not covered by the No. 5, and loans secured by things like mortgages in properties that are not covered by the No. 6.

12) shares and other securities admitted to trading on a regulated market in a country within the European Union or in a country with which the community has entered into an agreement on financial matters, or similar markets in other countries outside zone A.

13) Other loans and securities not covered by nr. 1-12.

14) reinsurance contracts and debts owed by reinsurers, as well as specific hedging plants under public supervision in countries covered by the zone A or reinsurance undertakings under public supervision, who have achieved a rating of a recognized ratingvirksomhed corresponding to at least investment grade.





(2). In a subsidiary whose activities are limited to making and managing investments in assets covered by paragraph 1, the subsidiary's assets in the value of the shares in and any loans to the subsidiary are treated as assets in accordance with paragraph 1. Is not wholly-owned subsidiary, is part of its assets to a proportional value equivalent to the share of equity owned.

(3). If the insurance company has a subsidiary, which operates direct life assurance company with permission in accordance with this law, can the subsidiary's assets are treated as assets in accordance with paragraph 1. The portion of the subsidiary's assets not used to cover technical provisions, and the subsidiary an amount corresponding to the subsidiary's capital adequacy, must in that case be of such a nature and composition, they may be included among the parent company's assets to cover the technical provisions in accordance with the provisions of this chapter. The subsidiary's assets can be combined up to a maximum be included among the assets covering technical provisions, for a value equivalent to the value of shares in the parent company and any loans to its subsidiary, with deduction of the subsidiary's capital adequacy. Is not wholly-owned subsidiary, is part of its assets to the proportional value equivalent to the share of equity owned.

(4). Paragraph 3 may be used similarly on other subsidiaries which are insurance companies with permission in accordance with this law. Such a daughter company assets may, however, be included among the assets at a maximum value, which corresponds to 5 percent of the parent company's technical provisions.

§ 163. The following limits with regard to the technical provisions are in force for the purpose of taking assets subject to section 159, paragraph 1:





1) Assets subject to § 162 (1) (8). 8-14, must not exceed 70 per cent overall.

2) Assets subject to § 162 (1) (8). 12, must not exceed 10 per cent overall.

3) Loans subject to § 162 (1) (8). 13, have gathered at a maximum of 2 per cent.

4) Assets subject to § 162 (1) (8). 4, 6, 8-10, 12 and 13, issued or guaranteed by banks and mortgage-credit institutes, insurance companies, business units of UCITS and placement associations, money market funds, UCITS associations, fåmandsforeninger and the professional associations for each company and Department of an association represent more than 5% of the technical provisions must not exceed 40 per cent overall.





(2). Other loans and securities subject to § 162 (1) (8). 13, may not exceed 10 per cent of the technical provisions. Reinsurance constitutes the limit 30 per cent.

§ 164. Assets that pose a risk to a single enterprise or a group of interconnected companies, may be included in the article 159, paragraph 1, referred to assets within the following limits laid down in relation to the technical provisions:





1) Assets subject to § 162 (1) (8). 3 may not exceed 40 per cent.

2) Assets subject to § 162 (1) (8). 4, may not exceed 10 per cent.

3) Assets subject to § 162 (1) (8). without prejudice to article 8. However, paragraph 4, may not exceed 10 per cent.

4) Assets subject to § 162 (1) (8). 14, may not exceed 10 per cent.

5) Assets subject to § 162 (1) (8). 6, 7, 9, 10, 12 and 13, have gathered at a maximum of 4% in insurance companies that do not operate direct life assurance referred to in article 6. However, paragraph 2.

6) Assets subject to § 162 (1) (8). 6, 7, 9, 10, 12 and 13, shall not exceed 2 per cent in total pension funds and insurance companies, which operates direct life assurance company, see. However, paragraph 2. The limit is 3 percent, if the equity in the company to which the asset relates, in excess of 250 million. DKK, when the company is resident in a country covered by the zone A and asset admitted to trading on a regulated market in a country within the European Union or in a country with which the community has entered into an agreement on financial matters, or similar markets in other countries covered by the zone A.

7) Assets subject to § 162 (1) (8). 5-7 and 9-13, have gathered at a maximum of 5 per cent.

8) Loans subject to § 162 (1) (8). 13 may not exceed 1 per cent.





(2). By investing in capital investments in and loans to a company or a group of interconnected companies whose activities alone is to invest in assets subject to § 162 (1) (8). 5 and 11, the total investment shall not exceed 5 per cent of the technical provisions, subject to article 20. section 159, paragraph 1.

(3). (1). 3 and 5-7, and paragraphs 2 and 5 shall not apply to the investment in a subsidiary undertaking which are covered by section 162, paragraphs 2 to 4.


(4). (1). 3 and 5-7, and paragraphs 2 and 5 shall not apply to investments in companies, investment institutions and associations within the scope of § 162 (1) (8). 8 if the activity after the Statute is limited to making investments in assets subject to § 162 (1) (8). 1-3. Such investments may in relation to the limits laid down in paragraph 1, no. 5-8, and (2) and § 163 (1) (8). 1-3, are considered assets subject to § 162 (1) (8). 1-3.

(5). For assets subject to § 162 (1) (8). 6, 7, 9, 10, 12 and 13, forms the border 5 percent for investments in a single company and 10 percent for investment in a group of interconnected companies in relation to the provisions of an insurance undertaking to cover its reinsurance business.

§ 165. In assets subject to section 159, paragraph 1, shall be an amount of at least 80 per cent be denominated in matching currencies. For reinsurance business forms the border of at least 70 per cent.

(2). Assets that are denominated in euro, can be used to meet half of the requirement in paragraph 1 of the technical provisions in another currency than the euro.

(3). The requirement referred to in paragraph 1 shall not apply where the technical provisions in the relevant currency represents less than 7% of the technical provisions in other currencies.

§ 166. For technical provisions in insurance class III, where the insurance company or pension fund has not undertaken any investment risk, the provisions of section 159, paragraph 2, and § § 163, 164 and 165 shall not apply.

(2). For funds taken over as separate SP-accounts, where the individual account holder even has an influence on the choice of investment pool or investment risk, the provisions of section 159, paragraph 2, and §§ 163-165 does not apply.

(3). Funds taken over as separate SP-accounts, where the individual account holder does not have influence on the choice of investment pool or investment risk, shall be located in accordance with §§ 158-169, see. However, paragraphs 4 and 5.

(4). § 163 (1) (8). 4, and section 164 (1) (8). 4, shall not apply to products placed in mutual funds, specialist associations, professional associations and approved fåmandsforeninger subject to § 162 (1) (8). 8.

(5). § 163 (1) (8). 1, shall not apply to products placed in mutual funds, specialist associations, professional associations and approved fåmandsforeninger subject to § 162 (1) (8). 8, assuming that these associations ' holdings of assets used in determining the location of the resources covered by paragraph 3 and to the provisions of §§ 158-169 with the exceptions referred to in paragraph 4 of this statement are complied with.

section 167. In insurance companies and pension funds must be kept a register of assets subject to section 159, paragraph 1, as well as financial contracts under section 160, paragraph 1, no. 3. In the property and casualty insurance companies must be additionally placed on a register that contains the assets that correspond to underwriting premiums where insurance period shall not commence until after the end of the financial year. The registered assets and contracts serves solely to the satisfaction of the insured.

(2). The requirement to register does not apply to those in section 162 (1) (8). 7, said policelån.

(3). Includes real estate among the assets, recorded a thing like pledge.

(4). For the subsidiaries covered by § 162 (2), and subsidiaries, subject to § 162, paragraphs 3 and 4, the shares shall be registered in, and any loans to the subsidiary, respectively, the subsidiary.

(5). The insurance company and pension fund provides reporting to the FSA about what assets are included in the register. The Danish financial supervisory authority or the FSA authorises it, verifies the existence of these assets in accordance with detailed rules laid down by the FSA.

(6). The Danish financial supervisory authority may require the register deposited, if supervision decides to restrict or prohibit the company's disposal of its assets. By the deposit of FSA Register must be registered as eligible in a central securities depository with regard to securities. With regard to the remaining assets and contracts, which serve as cover for the technical provisions must these hand pledged in favour of the Danish financial supervisory authority.

(7). Any change in a deposited register shall be approved by the Danish financial supervisory authority and shall be recorded in the register.

section 168. The Danish financial supervisory authority may, for a limited period exempt from § 162, § 163 (1) (8). 4 and § 164 (1) (8). 2-8 and 2-5.

§ 169. The Danish financial supervisory authority shall lay down detailed rules for





1) demarcation of securities covered by several of the in section 162 (1) asset groups

2) "localization and matching currencies compared the technical provisions,

3) coverage of technical provisions for insurance, subject to § 166, and

4) reporting, registration and control of the presence of assets in the registers under section 167.





Chapter 12

Business rules, consolidation, etc.

Group rules

§ 170. In groups, where the parent undertaking is a financial holding company or a financial institution, see the rules for financial institutions in section 124, (2). 1, apply to the financial holding company and the group, see. However, paragraphs 2 to 4. The parent undertaking shall ensure compliance with these provisions. In determining the Group's capital base, see. § 128, deducted from the capital that has been paid by companies in the group, which is not included in the consolidated statement for the group.

(2). In groups, where the parent undertaking is a realkreditholdingvirksomhed or a mortgage lender, will find the rules for mortgage lenders in section 124, (2). 1, apply to the holding company and the group. The parent undertaking shall ensure compliance with these provisions. In determining the Group's capital base, see. § 128, deducted from the capital that has been paid by companies in the group, which is not included in the consolidated statement for the group.

(3). In groups, where the parent undertaking is a fondsmæglerholdingvirksomhed or a stockbroking company, find rules for stockbroking firms in § 125 (2) nr. 1, apply for the holding company and the group. The parent undertaking shall ensure compliance with these provisions. In determining the Group's capital base, see. § 128, deducted from the capital that has been paid by companies in the group, which is not included in the consolidated statement for the group.

(4). In groups, where the parent undertaking is a investeringsforvaltningsholdingvirksomhed or an investment management company, the provisions of rules for investment management firms in § 125 (2) nr. 1, apply for the holding company and the group. The parent undertaking shall ensure compliance with these provisions. In determining the Group's capital base, see. § 128, deducted from the capital that has been paid by companies in the group, which is not included in the consolidated statement for the group.

§ 171. In groups, where the parent undertaking is a financial institution or a pengeinstitutholdingvirksomhed, see section 124 (1) and 4-6, and §§ 145-147, 149, 150, 152 and 182 also apply to the group. The parent undertaking shall ensure compliance with these provisions. In determining the Group's capital base, see. § 128, deducted from the capital that has been paid by companies in the group, which is not included in the consolidated statement for the group.

(2). There should be a consolidated statement in accordance with the rules laid down in paragraph 1 and section 170, paragraph 1, between a financial institution, which is itself a subsidiary of a financial institution, a mortgage lender or a financial holding company, and money the Department's subsidiary, which is a credit institution, management company, investment firm or a financial institution, which is not governed by the law of a country within the European Union or in a country which the community has entered into an agreement on the financial area.

(3). The Danish financial supervisory authority may provide that paragraph 1 and section 170, paragraph 1 shall apply in other cases where financial institutions alone or jointly have such direct or indirect association with a company that it deemed necessary to apply the aforementioned rules.

section 172. In groups, where the parent undertaking is a mortgage lender or a realkreditholdingvirksomhed, see section 124 (1) and 4-6, and §§ 145-147 and 182 in addition apply to group, see. However, paragraph 3. The parent undertaking shall ensure compliance with these provisions. In determining the Group's capital base, see. § 128, deducted from the capital that has been paid by companies in the group, which is not included in the consolidated statement for the group.

(2). There should be a consolidated statement in accordance with the rules laid down in paragraph 1 and section 170, paragraph 2, between a mortgage lender, which is itself a subsidiary of a financial institution, a mortgage lender or a financial holding company, and the mortgage credit Institute's subsidiary, which is a credit institution, management company, investment firm or a financial institution, which is not governed by the law of a country within the European Union or in a country which the community has entered into an agreement on the financial area.


(3). The Danish financial supervisory authority may provide that paragraph 1 and section 170, paragraph 2 shall apply in other cases where mortgage lenders alone or jointly have such direct or indirect association with a company that it deemed necessary to apply the aforementioned rules.

§ 173. In groups, where the parent undertaking is a stockbroking company or a fondsmæglerholdingvirksomhed, see section 125 (1) and 7-9, and §§ 145-147, 156 and 182 also apply to the group. The parent undertaking shall ensure compliance with these provisions. In determining the Group's capital base, see. § 128, deducted from the capital that has been paid by companies in the group, which is not included in the consolidated statement for the group.

(2). There should be a consolidated statement in accordance with the rules laid down in paragraph 1 and section 170 (3) between a stockbroking company, which itself is a subsidiary of a financial institution, a mortgage lender, a stockbroking company or a financial holding company, and the stockbroking company's subsidiary which is an investment company which is not governed by the law of a country within the European Union or in a country with which the community has entered into an agreement on the financial area.

(3). The Danish financial supervisory authority may provide that paragraph 1 and section 170, paragraph 3, shall apply in other cases in which the stockbroking companies alone or jointly have such direct or indirect association with a company that it deemed necessary to apply the aforementioned rules.

section 174. In groups, where the parent undertaking is a investeringsforvaltningsholdingvirksomhed or an investment management company, the provisions of § 125 (1) and 7-9, and §§ 145-147, 156 and 182 also apply to the group. The parent undertaking shall ensure compliance with these provisions. In determining the Group's capital base, see. § 128, deducted from the capital that has been paid by companies in the group, which is not included in the consolidated statement for the group.

(2). There should be a consolidated statement in accordance with the rules laid down in paragraph 1 and section 170, paragraph 4, between an investment management company, which itself is a subsidiary of a financial institution, a mortgage lender, an investment management company or a financial holding company and investment management company's subsidiary, which is a management company which is not governed by the law of a country within the European Union or in a country with which the community has entered into an agreement on the financial area.

(3). The Danish financial supervisory authority may provide that paragraph 1 and section 170, paragraph 4, shall apply in other cases where the investment management companies alone or jointly have such direct or indirect association with a company that it deemed necessary to apply the aforementioned rules.

§ 175. The Danish financial supervisory authority may determine that section 145 applies to corporations, where the parent undertaking is a financial holding company which are not stock brokerage, investment management, financial institution-or realkreditholdingvirksomhed.

§ 175 a. Groups, where the parent undertaking is a financial holding company or a financial company shall annually report all exposures referred to in article 6. § 5 (1) (8). 16, who constitute more than 10 per cent of the Group's capital base.

(2). The Danish financial supervisory authority shall lay down detailed rules for the provision in accordance with paragraph 1.

Consolidation

§ 176. If a stockbroking company, an investment management company, a financial institution, a mortgage lender or a financial holding company alone or in conjunction with other companies in the Group holds shares in a credit or financial institution that is not a subsidiary company, credit institution or financial institution operated jointly with other companies that are not part of the group, must be pro rata consolidation of the company pursuant to § § 170-174 in relation to business units ' share of equity and retained earnings in the company in which participating interests are held.

(2). If the stockbroking company, investment management company, Bank, mortgage Foundation or the financial holding company's responsibility for the company is not limited to its stake or voting rights must be made a full consolidation pursuant to sections 170-174.

§ 177. Insurance companies and insurance companies ' subsidiaries and establishments which temporarily operated by financial companies should not be included in the consolidation pursuant to sections 170-174. The FSA may, however, provide that these companies should be included.

(2). Credit institutions or financial institutions which are subsidiaries of insurance companies, must be included in the consolidation pursuant to sections 170-172, if the parent undertaking is a financial institution, a mortgage lender or a stock brokerage, investment management, financial institution-or realkreditholdingvirksomhed.

Exemption provisions

§ 178. The Danish financial supervisory authority may, in exceptional cases, exempt from the requirements in § § 170-174.

(2). The Danish financial supervisory authority may allow other groups than those referred to in section 170 (2) can include series reserve funds to basic capital in accordance with the rules laid down in §§ 129 and 135.

Excretion, divestiture and intragroup transactions

§ 179. The FSA can order a parent company that owns shares in financial companies to separate the financial companies and financial institutions in a delkoncern under a financial holding company, provided





1) group is structured in such a way that the parent company should not meet the solvency requirement in § 170,

2) a member of the administrative or management body of the parent undertaking are covered by one of the conditions in section 64 (2), nr. 1, 2 and 4, or

3 Moreover, impeding the performance of structure) supervisory tasks.





section 180. The Danish financial supervisory authority may order that a financial holding company sells shares of a financial undertaking where





1) parent undertaking or group do not meet the solvency requirement in § 170,

2) a member of the holding company's Board of directors or executive management do not have sufficient experience to exercise the Office or position or covered by one of the conditions in section 64 (2), nr. 1-2 and 4, or

3) parent undertaking counteracts the sound and prudent management of the financial business.





section 181. FSA sets out detailed rules for transactions entered into between a financial undertaking and





1) undertakings which directly or indirectly linked to the financial business of subsidiaries, associated companies or the parent companies or as parent's associated companies and other subsidiaries,

2) businesses or persons associated with the financial business through close links, see. § 5 (1) (8). 17, or

3) enterprises that are not covered by the No. 1 and 2 in which the characters in the corporate management of the majority of which are the same, or where the companies are subject to a common management pursuant to a contract or clauses thereof.





(2). Intragroup transactions effected in violation of the, pursuant to paragraph 1, the rules laid down must be lifted, so that the benefits of possible returned, including the prevention of possible collateral ceases. Withdrawals from the financial business carried out in the context of intragroup transactions contrary to legislation, pursuant to paragraph 1, the rules laid down, should be reversed, with the annual interest rate by the amount equal to the interest rate provided for under section 5 (1) and (2) of the law on rate of interest for late payment, etc.

§ 182. A financial company shall not without the permission of the FSA have exposures to other companies within the same group except exposures to subsidiaries.

(2). A financial business must also not have an engagement with companies or individuals who directly or indirectly have a decisive influence on the financial business, or which is dominated by companies or individuals with such influence.

(3). The Danish financial supervisory authority may exempt from paragraph 2.

Title VI

Annual report, review and application of the year's profits

Chapter 13

Annual report, review and application of the year's profits

General rules on annual report and audit

section 183. Financial companies and financial holding companies shall draw up an annual report that at least consists of a management endorsement, a balance sheet, an income statement, notes, including the statement of accounting policies, as well as the summary of movements in shareholders ' equity, as well as a management report. When an annual report is audited, the audit report is included in this.

(2). The annual report must be drawn up in accordance with the rules laid down in this chapter and the rules laid down pursuant to § 196 of the basic regulation. However, paragraphs 3-6.

(3). Where the provisions of this chapter or regulations issued thereunder regulate the same conditions as the Council regulation on the application of international accounting standards to regulate, without prejudice. Article 4 of the regulation, the provisions of this chapter or the rules issued thereunder is not the validity of the article 4 of the regulation included the companies ' consolidated financial statements.


(4). Financial companies and financial holding companies, whose securities are not admitted to trading on a regulated market, notwithstanding paragraph 2, choose to draw up annual report in accordance with the standards referred to in paragraph 3. Financial companies and financial holding companies, whose securities are admitted to trading on a regulated market, notwithstanding the provisions of paragraph 2 can choose to apply the standards referred to in paragraph 3 on the parts of their annual report, which is not covered by the said regulation, article 4.

(5). Financial companies, which in accordance with paragraph 4 following the standards referred to in paragraph 3, shall apply all the accepted standards in their annual report. Where the provisions of this law or regulations issued under section 196 regulates the same ratio as the standards, companies that pursuant to paragraph 4 applies standards, applying the standards in place of the provisions in question. If companies alone employ standards at their consolidated financial statements and not on the financial statements shall apply 1. and 2. paragraph solely on the consolidated financial statements.

(6). The Danish financial supervisory authority may impose disclosure requirements for companies that follow the standards referred to in paragraph 3.

§ 184. Board of Directors and the Management Board shall submit the annual report of the company.

(2). Each Director has responsibility for the annual report must be drawn up in accordance with the law and any additional requirements for financial statements in the articles of association or agreement. In addition, each Member is responsible for the fact that the annual report can be reviewed and approved in a timely manner. Finally, each Board member responsible for the fact that the annual report be submitted to the Danish financial supervisory authority within the time limits laid down in legislation.

section 185. When the annual report is prepared, all members of the Board of Directors and the Executive Board shall sign it and date the signature. They must give their signature in connection with a management endorsement, where each member name and role in relation to the company is clearly indicated, and in which they declare, whether





1) annual report is prepared in accordance with the legislation requirements and any claims in the articles of association or agreement,

2) annual report gives a true and fair view of the company and, if there are prepared consolidated financial statements, the Group's assets and liabilities, financial position and profit or loss and

3) the management report gives a true and fair review of the development of the company and, if there are prepared consolidated financial statements, the Group's activities and financial situation as well as a description of the principal risks and uncertainties which the Group respectively can be influenced by the company.





(2). Management has included additional reports in the annual report, the members of the Management Board and the Executive Board of management endorsement stating whether or not the report gives a true and fair view within the framework of generally accepted guidelines for such reports.

(3). Although a management member is completely or partially disagree in the annual report or has objections, that it must be approved with the content that has been decided, the Member will not not to sign. Management member can, however, make known its objections with a concrete and adequate statement of reasons in relation to its signature and leadership endorsement.

§ 186. The annual report must give a true and fair view of the company and, if there are prepared consolidated financial statements, the Group's assets and liabilities, financial position and profit or loss.

(2). If the application of the provisions of this Act or the rules issued under section 196 is not sufficient to give a true and fair view as referred to in paragraph 1, additional information must be provided in the annual report.

(3). If the application of the provisions of this chapter or rules adopted pursuant to § 196 in exceptional cases would be contrary to the requirement in paragraph 1, they must be permitted, so that this requirement is met. Such a derogation shall be disclosed in the notes on the accounts each year and here always justified concrete and complete with information on the impact, including the monetary impact as far as possible, the derogation has on company respectively the Group's assets and liabilities, financial position and profit or loss.

section 187. To the statutory share of an annual report can give a true and fair view in accordance with § 186, the rules laid down in paragraphs 2 and 3 are met.

(2). The annual report must be drawn up in such a way that it supports accounting users in their economic decisions. The referred accounting users are individuals, companies, organisations and public authorities, etc., if economic decisions usually are likely to be affected by an annual report, including current or future business participants, vendors, employees, customers, alliance partners, the local community, as well as grant-making and fiscal authorities. The decisions referred to in the very least concern





1) location of accounting's own resources,

2) management's management of company resources and

3) distribution of the company's resources.





(3). The annual report must be drawn up in such a way that it informs you of conditions that are usually relevant for accounting users, see. (2). The information must also be reliable in terms of what accounting users normally expect.

§ 188. The annual report must be drawn up in accordance with the following basic assumptions:





1) It must be drafted in a clear and orderly manner (clarity).

2) account should be taken of the realities and not for formalities without real content (substance).

3) All the relevant factors must be included in the annual report, unless they are insignificant (materiality). Is considered more insignificant relationship together to be significant, they must nevertheless be included.

4) the operation of an activity is supposed to continue (going concern), unless it should not or cannot be assumed to be able to continue. Dismantled a activity, classification and nomenclature as well as the recognition and measurement are adapted in this settlement.

5) Any value change to appear, regardless of the impact on equity and profit and loss accounts (neutrality).

6) transactions, events and value changes are recognised when they occur, regardless of the time of payment (accrual).

7) Recognition methods and measurement basis must be applied uniformly in the same category of conditions (consistency).

8) each transaction, occurrence and value change shall be recognised and measured separately, just like the individual relation should not be netted off against each other (gross value).

9) opening balance for the financial year shall correspond to the closing balance for the previous financial year (formal continuity).





(2). Establishment and classification, consolidation method, recognition method and measurement basis as well as the monetary unit must not be changed from year to year (real continuity). Modification can be done if there is thus better achieved a true image, or if the change is necessary as a result of the change in the law or new rules issued under section 196.

(3). The provisions of paragraph 1, nr. 6-9, and paragraph 2 may be waived in exceptional cases. In that case, section 186 (3), 2. paragraph, mutatis mutandis.

section 189. Financial companies ' assets and liabilities must, except as otherwise provided under section 196, measured at fair value. Assets and liabilities the up and written down accordingly and use the up and write-downs are recognised in the income statement, unless otherwise provided under section 196.

(2). The fair value is measured at the market value can be determined for the asset or obligation on the proper functioning of the market. If the asset or obligation not traded on a well functioning market, used a recognised method for the calculation of the fair value of the asset or the obligation in question.

section 190. Additional reports, URf.eks. reports on knowledge and employee relations (scorecards), on environmental aspects (accounting), on corporate social responsibility (social accounts) and on the company's ethical objectives and follow-up (ethical accounts) must give a true and fair view within the framework of generally accepted guidelines for such reports. They must meet the quality requirements of section 187 (3) of the code and with the reductions arising from the factual arguments, the basic preconditions of § 188, paragraph 1 and 2.

(2). Of the supplementary reports must be stated in the methods and measurement basis, after which the reports have been prepared.

section 191. The financial year shall follow the calendar year.

(2). First financial period may include a shorter or longer period than 12 months up to a maximum of 18 months.

(3). Parent companies and subsidiaries to ensure that subsidiary undertaking have the same fiscal year as the parent company, unless this is not possible due to circumstances that are out of the parent undertaking and the subsidiary's control.

(4). The Danish financial supervisory authority may, in exceptional cases, dispense with the requirement referred to in paragraph 1.

section 192. Recognition, measurement and information in monetary units must be carried out in Danish kroner or euro. The Danish financial supervisory authority may in regulations issued under section 196 provide that the amounts entered under other foreign currencies, which are relevant to the company, respectively, the company's business.

section 193. The annual report must be audited by the company's external auditors, see section 199. The review does not include the additional reports, as contained in the annual report referred to in article 6. section 190.


§ 194. The annual report shall be in the form in which it is submitted and approved by the Board of Directors shall be submitted in duplicate to the Danish financial supervisory authority without undue delay after the Board meeting, where the annual report is finally approved.

(2). External auditor's audit minutes relating to the annual report, as well as for enterprises with internal auditor also internal audit manager audit minutes concerning the annual report must be submitted to the Danish financial supervisory authority at the same time with the submission of the annual report in accordance with paragraph 1.

section 195. The audited and approved annual report must be submitted to the FSA in triplicate without undue delay after final approval. The annual report must be received no later than 4 months after the FSA in the end of the financial year.

(2). The submitted annual report shall include at least the mandatory components as well as the full audit report. Want the company to get published supplementary reports as referred to in section 190, these are submitted together with the mandatory elements of the annual report, so that the required components and the supplementary reports taken together appear as a single document called ' annual report '.

(3). A copy of the annual report for all of the company's subsidiaries, which are not financial companies subject to FSA oversight, must be submitted to the Danish financial supervisory authority at the same time with the submission of the annual report in accordance with paragraph 1.

(4). The Danish financial supervisory authority shall transmit one of the copies referred to in paragraph 1, to the Danish Commerce and companies Agency, where the annual report is publicly available in accordance with the rules laid down by the Agency for doing so.

section 196. The Danish financial supervisory authority shall lay down detailed rules concerning the annual report, including the rules on recognition and measurement of assets, liabilities, income and expenses, income statement and balance sheet as well as the establishment of requirements for notes and the management report.

(2). The Danish financial supervisory authority also establishes rules for consolidated financial statements, including the rules for when an annual report must include a consolidated financial statement, as well as which companies it must involve.

(3). The Danish financial supervisory authority may lay down rules for the preparation and disclosure of financial reports that cover shorter periods than the annual report.

section 197. In order to ensure that financial companies and financial holding companies ' annual reports are in accordance with the rules laid down in this chapter and the regulations issued under section 196, and that financial companies ' consolidated financial statements referred to in article 4 of the Council regulation on the application of international accounting standards in accordance with international accounting standards, financial supervision





1) provide guidance,

2) prosecuting infringements and

3) require that the error must be corrected, and that violations must be brought to an end.





section 198. Financial companies and financial holding companies shall carry out regular financial reports to the FSA in accordance with schedules and guidelines for that purpose issued by the FSA. The reports must be submitted to the FSA in electronic form.

(2). The Danish financial supervisory authority may grant a derogation from § 198 (1), (2). PT.

section 199. Financial companies and financial holding companies must have at least one certified public accountant. Select more than one auditor or a designated auditor after 3. paragraph, they must further chosen or designated accountants be chartered or registered. The Danish financial supervisory authority may in exceptional circumstances, appoint a further auditor. This auditor works under the same conditions and according to the same rules as the auditors elected by the general Assembly.

(2). The Auditors in a financial company or of a financial holding company shall also be accountants in the company's subsidiaries.

(3). Paragraph 2 shall not apply to parent companies and subsidiaries that are not resident in Denmark.

(4). The Danish financial supervisory authority may dismiss an auditor, there is manifestly unfit for his Office, and instead appoint another auditor, who works, see. (1), (3). item until new elections can be carried out.

(5). By switching to the company auditor and outgoing auditor no later than 1 month after the resignation of give the FSA's statement, if the shift is due to each particular situation.

(6). The FSA can impose on the auditor and internal auditor also for companies with internal audit manager to provide information relating to the conditions of a financial undertaking of a financial holding company or of such companies ' subsidiaries.

(7). The Danish financial supervisory authority may organise an extraordinary revision of a financial undertaking of a financial holding company or of such companies ' subsidiaries. The financial company can be required to pay for the audit performance. FSA approves communicates the size.

(8). The Danish public companies Act § § 82-85 on revision shall mutatis mutandis mutatis mutandis to financial companies and financial holding companies, that are not corporations.

(9). The Board cannot allow, see. section 80, paragraph 1, that the internal audit and the Deputy Heads of audit performs audit assignments in companies outside the group. The Board of Directors may also not allow internal auditors and Deputy Auditors managers performs other work than audit tasks in companies within the group or in companies within the same administrative community. The Danish financial supervisory authority may, in exceptional cases, dispense with 1. PT.

Paragraph 10. The Board cannot allow, see. section 80, paragraph 1, that the internal audit and the Deputy Auditors, managers assume duties, which means that they come in conflict with their Declaration of interest provisions similar to those applicable to external auditors in accordance with the law on State authorised and registered accountants.

Paragraph 11. FSA sets out provisions relating to audits of financial institutions, financial holding companies and subsidiaries of such undertakings. Including the FSA can provide for internal audit and system audit implementation in the data centres.

§ 200. An external auditor and an internal audit manager must immediately inform the FSA information about matters that are of vital importance for the company's continued activity, including the fact that the Auditors had to be made aware of as part of the duties of the Auditor in businesses, as the company has close links.

Specific rules concerning the use of the year's profits at financial institutions

§ 201. A financial institution must make provisions that are necessary according to the institution's financial position. The articles of association may prescribe the obligation to reserve.

section 202. A bank's annual profits must be disclosed to shareholders ' equity excluding amount attributed to sparekassens employees as part of agreements on profit-sharing.

(2). The Board of Governors may, however, provide that the amount to be used for non-profit or charitable purposes. Such sums may be assigned to a special fund for later payment.

(3). Constitute a bank's capital ratio, see. section 124, less than 15 percent, may be for non-profit or charitable purposes most used 10 percent of the profits.

(4). Transfer to guarantee capital from sparekassens other equity are prohibited.

§ 203. Decision on the allocation of the surplus amount, a cooperative has to disposition after the financial statements shall be taken by the general Assembly. The general meeting shall not decide the distribution of higher yield than proposed or approved by the Board of Directors. Is a cooperative box connected to an association in accordance with §§ 89-96, payment of dividends, however, be approved by the Association's leadership.

(2). The General Assembly may decide, that of cooperative institution funds granted gifts to nonprofits or similar purposes, in so far as, taking account of the purpose of the gift, cooperative institution financial position and circumstances, moreover, must be regarded as reasonable. The Management Board may, for the purposes referred to in 1. paragraph, apply the amount that the financial position of the institution in relation to the cooperative is of minor importance.

Title VII

Intervention in or termination of the financial business

Chapter 14

Aggregation and transformation

Aggregation

section 204. A financial company shall not without the permission of the Minister of economic and business merged with another financial company or a particular forretningsdel of another financial company. Similarly, when the continuing operations is a foreign company.

(2). An insurance company by aggregating entrusts all or part of its portfolio to another insurance company, without the merger is subject to the Danish public companies Act Chapter 15 or 15 (a), be released upon authorization in accordance with paragraph 1 for liability to policyholders.

(3). Unless the Minister for economic and Business Affairs considers that authorisation for the transfer of a portfolio should be denied, the Danish financial supervisory authority publish a statement of the intended transfer in the Official Gazette and in a nationwide newspaper. The statement must include a call to the policyholders whose insurance is intended to be transferred, until at the latest 3 months after publication to submit written notification to the FSA if they have objections to the transfer. The company shall send a notice of the transfer as well as the Danish FSA statement to the policyholders, whose address the company is aware.


(4). After the expiry of the time limit referred to in paragraph 3 shall take the Minister for economic and business affairs, taking into account the objections raised by decision on the compatibility of the insurance stock may be transferred in accordance with the proposals put forward. The transfer may not be invoked as a basis for raising the insurance contract.

(5). Happens, the transfer of a portfolio in connection with a merger of insurers, can the merger regardless of section 27 of the Act on insurance agreements may not be invoked by the insured as a basis to terminate the insurance contract.

(6). In the case of life assurance, in connection with the transfer can only be made such changes of the transferring company insurance conditions, including the bonus rules, which the FSA is estimated to be an inevitable consequence of the transfer.

(7). Men's statement after the merger plans and the assessment of the Danish public companies Act § 134 c, paragraph 4, for insurance companies at the latest 4 weeks after signing are submitted to the FSA, which publishes merger and assessment ' statement.

section 205. The Minister for economic and business affairs, can lay down rules according to which the provisions of the Danish public companies Act § § 134 a-134 k and 137-137 (g) with the necessary adaptations, apply for savings banks, cooperative banks and mutual insurance companies by mergers.

(2). The Danish public companies Act § 134 apply to mutual associations, where the merger occurs after the pursuant to paragraph 1, the rules laid down.

section 206. The Minister for economic and business affairs may lay down the conditions under which the Danish public companies Act § § 134 a-134 k and 137-137 (g) with the necessary adaptations, apply to a bank's acquisition of a public company authorised to operate banking business.

(2). The Danish public companies Act § 134 apply by takeover subject pursuant to paragraph 1, the rules laid down.

Sparekassers and conversion into joint-stock companies andelskassers

Section 207. In savings banks, which have driven business since the 1. January 1989, and in cooperative banks or associations thereof, that has driven the company since 1 January 2002. January 1995, the Board of Governors or the AGM in accordance with the provisions of this chapter may decide that the savings bank, andelskassen or association shall be dissolved without liquidation by transfer of sparekassens, cooperative institution or member andelskassernes assets and debts as a whole to one of the savings bank, andelskassen or association owned or created limited liability company authorized to operate banking business (Savings Bank Ltd./andelskasse Ltd.). Shares in the company equal to the value of the Endowment's assets after deduction of sparekassens or the individual cooperative Treasury's debt, see. However, section 208, (2), shall be transferred in the savings banks for a Fund of cooperative banks to a foundation or an association and in associations for a foundation or an association created for the individual Member andelskasse. Funds are considered as trader funds. Societies ' members must be shareholders of the company.

(2). Decision pursuant to paragraph 1 shall be taken by the majority, which is required for sparekassens, cooperative institution or its resolution.

(3). In the event of dissolution of a pursuant to paragraph 1 created Association, who owns shares in a non-distributable equity can owned andelskasse to Association members.

section 208. The Danish public companies Act § § 134-134, 137-137 in c and 137 e-137 (g) shall mutatis mutandis apply to the merger regulation. § 207, paragraph 1, between the joint stock company as the continuing company and savings bank, andelskassen or association as the discontinuing Corporation.

(2). The guarantors in the savings bank and cooperative gardens in andelskassen be offered either a replacement of your choice to the market price of their guarantor certificates and cooperative evidence for shares in the company or cash redemption. The savings bank may also offer the guarantors, to guarantee capital will remain in the company for a period of up to 5 years. In the event of the dissolution of the guarantee deposits to be repaid before the share capital.

(3). The Danish public companies Act § 134 (a) mentioned in the merger plan shall contain the information and determining whether the rights conferred on the guarantors and cooperative.

(4). The Danish public companies Act § 134 b in referred to common accounting and the opening balance sheet drawn up in accordance with the applicable accounting rules for banks.

(5). The Minister for economic and business affairs must approve the merger pursuant to § 204 (1).

§ 209. The under section 207 (1), created the foundations or associations, who owns shares in a savings bank owned or owned, administered by a Board of Directors andelskasse of at least 3 members.

(2). A majority of the Board referred to in paragraph 1 shall be appointed by the Board of the savings bank limited company, see. Section 207 (1) among the members of the Management Board.

(3). A majority of the Board of Directors of foundations and associations, who owns more than 25 percent of the share capital in a designated by the Board of Directors of owned andelskasse andelskasse property company, see. Section 207 (1) among the members of the Management Board. The Chairman of the savings bank aktieselskabets and aktieselskabets Board of Directors is always andelskasse member of the Fund or of the Association's Board of Directors.

(4). To the Board of Directors for the referred to in paragraphs 1 and 2 foundations or associations appointed 1 member and among savings bank aktieselskabets or aktieselskabets employee representatives unless andelskasse rules on group representation in law on trader funds shall apply. The rules of the Danish public companies act on group representation shall apply mutatis mutandis for the Member concerned.

(5). In associations, which holds less than the part referred to in paragraph 3 of the share capital in a Board of Directors elected by the Association's owned andelskasse members.

(6). Paragraphs 1 to 5 shall not apply where the savings bank limited company or limited company is dismantled after andelskasse §§ 226 and 227 and savings bank limited company or cooperative limited company is not considered to be continued. When the savings bank limited company or limited company is dismantled and andelskasse cannot be regarded as passed, is considered the Fund continues as a trader Fund referred to in article 6. Section 207. The Danish Commerce and companies Agency must authorize any changes in authority Fund as the Fund's statutes, which are required by law on traders funds.

section 210. Savings Bank aktieselskabets and aktieselskabets andelskasse statutes shall provide for voting rights restriction for shareholders, which ensures that the hitherto guarantor, depositor and cooperative democracy is maintained.

(2). The requirement referred to in paragraph 1 shall lapse 5 years after conversion to limited liability company.

section 211. In savings banks, which have driven business since the 1. January 1989, regulators may decide that the savings bank dissolved without liquidation by transfer of sparekassens assets and liabilities to a savings bank owned or created by the limited liability company authorized to operate banking business and that the company create a bottom in the stock savings bank reserve equal to the value of the Endowment's assets after deduction of sparekassens debt.

(2). § 7, paragraph 7, and § § 207, 208 and 210 shall apply mutatis mutandis.

§ 212. The bound savings bank reserve, see. § 211, can be used to cover the deficit, are not covered by the amount that can be used for dividends in the company.

(2). In the event of the termination of a distribution to the shareholders can Bank take place only when the obligations referred to in paragraph 4 are fulfilled.

(3). In the case of a merger with another financial institution to take over the continuing company savings bank reserve on the same terms until the merger was in effect.

(4). In the event of termination of the foundation used money savings bank reserve for non-profit or charitable purposes in accordance with detailed rules laid down in the decision under section 211.

section 213. In addition to the provisions prescribed in article 201 shall be annually by the part of the year's profits that are not needed to cover deficits from previous years shall be 10% for captive savings bank reserve, see. section 211. If the reserve will exceed the rate of return on savings bank reserve, which corresponds to the minimum interest rate of taxes with deduction of a proportional share of this year's corporate income tax, however, alone appropriated an amount equivalent to this return.

Mortgage funds and mortgage credit associations which have been mortgage-credit institutions

section 214. Funds that have been mortgage-credit institutions, and funds that have been set up in connection with the conversion of building societies for joint stock companies, are covered by the law on trader funds.

(2). Notwithstanding the fact that a mortgage Ltd. is settled by §§ 226 and 227 and not deemed to be continued, shall be deemed to be without prejudice to the Fund. (1) continue to be a trader Fund. Changes in the Fund's statutes, which is necessary in accordance with the law on trader funds must be approved in the Danish Commerce and companies Agency, which is the Fund Authority.

section 215. Changes in the statutes of an association that has been a mortgage lender, can only happen with the approval of the Minister of economic and business.

(2). The Minister for economic and Business Affairs approves the articles of Association, if the change is not in contravention of sections 218 and 219 and otherwise not contrary to the interests of its members.


section 216. A foundation or association which has been a mortgage lender, and a fund set up in connection with the conversion of a mortgage lender to a limited liability company, to be headed by a Board of at least 5 members, if the Fund or the Association owns the mortgage company.

(2). Borrowers in the mortgage company and the holders of mortgage bonds and other securities issued by the mortgage company chooses each one or more members of the Board of Directors. These members shall together constitute more than half of the Board. Members elected by the holders of mortgage bonds and other securities may not account for more than half of the Board.

(3). Fund or the Association covered by paragraph 1 shall lay down in statutes and by electoral regulation the detailed rules for the election and composition of the Board of Directors. The rules must be approved by the FSA.

§ 217. Foundations and associations within the scope of § 216 must beforehand inform Danish financial supervisory authority on the acquisition of a dominant influence, directly or indirectly, of a business, as well as on divestment of such influence.

section 218. A foundation or association which has been a mortgage lender, and a fund set up in connection with the conversion of a mortgage lender to a public limited-liability company must submit the audited and approved annual report for the financial supervisory authority in triplicate. The annual report must be received no later than 4 months after the FSA in the end of the financial year. The FSA will forward a copy to the Danish Commerce and companies Agency, where the annual report is publicly available in accordance with the rules, the Danish Commerce and companies agency lays down for this.

(2). FSA sets out the detailed rules for financial reporting.

section 219. In the event of liquidation of an association that has been a mortgage lender, equity is not distributed to the Association's members.

section 220. Mortgage companies, which are transformed into joint stock companies after encapsulation model, can use the captive Fund reserve for deficit not covered by the amount that can be used for dividends in the company.

(2). By fusing the mortgage Department under section 204 takes over the continuing company Reserve Fund on the same terms, which was in force until the amalgamation.

(3). In the event of termination of the Foundation be used fund the mortgage reserve for non-profit or charitable purposes in accordance with detailed rules laid down in the decision of transformation. The distribution to shareholders may only take place when the commitments under 1. paragraph are met.

§ 221. Mortgage companies, which are transformed into joint stock companies after encapsulation model, drop 10 per cent of the year's profits that are not needed to cover deficits from previous years, to fund the reserve. If the reserve will exceed the rate of return of the Fund reserve, which corresponds to the minimum interest rate of taxes with deduction of a proportional share of this year's corporate income tax, however, alone appropriated an amount equivalent to this return.

Conversion of insurance companies

section 222. The form, content and implementation of a conversion of an insurance company must be approved by the FSA. The continuing insurer subrogated in the rights and obligations of the insurance company discontinuing.

Chapter 15

Termination

Withdrawal of authorisation

§ 223. The Danish financial supervisory authority may withdraw the authorisation to operate as a Bank, mortgage lender, stockbroking firm, investment management company and the insurance company as well as securities dealer, if the company so requests.

section 224. The FSA may also involve the authorization to operate as a Bank, mortgage lender, stockbroking firm, investment management company and the insurance company,





1) if the financial company is guilty of serious or repeated infringements of this law, law on securities trading, etc. or the law on mortgage loans and mortgage bonds, etc., or regulations issued pursuant to these laws,

2) if the financial company does not comply with the requirements of Chapter 3 of the basic regulation. However, section 124, (2). 2, and paragraph 3, and § 125 (2) nr. 2-4,

3) whose activities as a financial company does not commence within 12 months after the FSA has granted the company permission, or

4) if not exercised financial business for a period exceeding 6 months.





(2). Has a Bank, a mortgage lender or an investment management company a permit as a securities dealer under section 9 (1), the authorization as securities dealer be withdrawn if the conditions laid down in paragraph 1, no. 1-4 are fulfilled.

(3). Have a bank or mortgage lender allowed to issue covered bonds, authorization may be withdrawn if the





1) financial institution is guilty of serious or repeated breaches of sections 152 a-152 g or rules laid down pursuant to section 16 (a), (4) or section 152 h,

2) mortgage institution guilty of serious or repeated violations of § § 33 a-33 (e) of the law on mortgages and mortgage bonds, etc. or rules laid down pursuant to section 16 (a) (4) of this Act or section 33 f of the law on mortgages and mortgage bonds, etc., or

3) issuance of covered bonds is not started within 12 months after the FSA has granted the Department permission.





(4). Have a bank or a mortgage institution permission as a securities dealer under section 9 (1), the authorization as a financial institution or mortgage lender be withdrawn if the conditions laid down in paragraph 1, no. 1-4 are fulfilled.

(5). Have an insurance undertaking does not, within the time limits laid down by the FSA implemented the measures, as specified in the section 248, paragraphs 1 and 2, referred to the recovery plans, the authorisation as insurance company involved.

(6). Has an operator of a regulated market permission to operate multilateral trading facilities pursuant to § 9, paragraph 9, the authorisation for that purpose can be withdrawn if the conditions laid down in paragraph 1, no. 1, 3 or 4, or capital requirements of § 9, paragraph 9, and section 125 (1) and 4-6 are not met. 3)

section 225. Meet a financial institution, mortgage lender, stockbroking firm or investment management company not the capital requirements of section 124, paragraphs 2, 3, 5, 7 and 8, and section 125, paragraphs 2 to 5 and 8, and it has not provided the required capital within a period specified by the FSA, FSA must involve the consent.

(2). If the provision of capital requires that the Foundation's money, mortgage credit Foundation, stockbroking firm or investment management company's top authority is convened, the Danish financial supervisory authority may provide that the request may be made with a shorter time limit than that stipulated in the statutes.

(3). Meet a group covered by §§ 171-174 not solvency requirement in the provisions in question, and has not provided the required capital within a period specified by the FSA, FSA can involve money, mortgage Foundation Foundation, stockbroking firm or investment management company's permission.

Settlement

section 226. When the Danish financial supervisory authority involves a financial institution, mortgage institutions, stockbroking company or investment management company authorised pursuant to § 223, § 224, paragraphs 1, 2, 4 and 5, and section 225, the company must be phased out, and the other company may not commence before completion.

(2). When the Danish financial supervisory authority shall withdraw the authorization pursuant to § 224, paragraphs 2 and 4, the company, as the Bank, mortgage credit Foundation, stockbroking firm or investment management company no longer has permission to run. The Danish financial supervisory authority may fix a time limit within which such settlement must be made.

(3). When the Danish financial supervisory authority authorisation of an insurance undertaking shall involve the FSA decision as to whether the insurer should search portfolio transferred to one or more insurance companies, who operates the business of insurance in this country, or whether the company otherwise must seek insurance settled. For life insurance companies can FSA decide that insurance be taken under administration in accordance with §§ 253-258.

(4). The Danish financial supervisory authority may in connection with the inclusion of an insurance undertaking authorized to ban insurance company to dispose of its assets or restrict its available above. § 167, (6) and (7) shall apply mutatis mutandis.

(5). When the Danish financial supervisory authority shall withdraw an operator of a regulated market permission to operate multilateral trading facilities under section 224 (5) should the multilateral trading facilities is executed in a manner and within a period laid down by the FSA. The Danish financial supervisory authority may lay down detailed rules for the execution.

§ 227. Settlement, see. § 226, is done by liquidation or bankruptcy or merger under section 204. If the dismantling is done in some other way, the Danish financial supervisory authority must approve afviklingens form, content and implementation.

section 228. The Danish financial supervisory authority may fix a time-limit for the adoption of a decision about liquidation after the Danish public companies Act § 116, paragraph 1. The time limit is exceeded, the Danish financial supervisory authority may decide that the financial company shall enter into liquidation.

(2). Decision on liquidation of a financial company shall immediately be communicated to the FSA.


Section 229. A company, which operates life insurance company, may not without the consent of each policyholder is dissolved, unless it has transferred its entire portfolio to another company in accordance with the rules laid down in section 204 or its portfolio is taken under administration.

§ 230. An insurance company, which operates the work accident insurance, may not be dissolved unless it has transferred all his professional accident insurance stock to another company in accordance with the rules laid down in section 204, or its working accident insurance stock is taken under the administration of injuries pursuant to section 54 of the law on workers ' compensation.

Special rules on liquidation and bankruptcy

§ 231. A financial institution, mortgage lender, stockbroking firm or investment management company wound up by one or more liquidators, who shall be appointed by the Minister for economic and business affairs. One of the liquidators shall be a lawyer.

(2). In the event of an insurance undertaking being wound up may the Minister for economic and business affairs, when the interests of the policyholders, shareholders, guarantors or creditors, after received the opinion of the Danish financial supervisory authority appoint a liquidator, together with those of the general Assembly chose to carry out the liquidation.

(3). Take the FSA pursuant to § § 249 or 250 provision that an insurance company shall enter into liquidation, appoints the bankruptcy court after negotiating with the FSA one or more liquidators, of which one must be a lawyer.

section 232. The Danish financial supervisory authority may suspend a financial company bylaws under liquidation.

(2). Accounts prepared in connection with the winding-up, must be submitted to the FSA.

section 233. Petition for bankruptcy of a financial undertaking which is being wound up, can only be submitted by liquidators or FSA.

section 234. The Danish financial supervisory authority can file for bankruptcy when a financial undertaking becomes insolvent. The FSA's decision to file for bankruptcy may not be appealed under section 372.

(2). Regardless of the Bankruptcy Act, section 17, paragraph 2, shall be deemed to be a financial company that cannot meet its obligations with regard to subordinated capital admitted as hybrid core capital or equity loan, not to be insolvent.

(3). After passing the bankruptcy Decree appoints the bankruptcy court after negotiating with the FSA one or more curators. One of the liquidators shall be a lawyer.

(4). Declared an insurance company, there is no assurance company, bankruptcy, see section 253 apply mutatis mutandis.

(5). Declared a life assurance company bankruptcy, must be taken into account under portfolio management pursuant to §§ 253-258.

section 235. The Danish financial supervisory authority has the right to participate in meetings of the Committee of creditors and in switch Collections. Draft final accounts and the final distribution of the bankruptcy estate shall be presented by the curator of the Danish financial supervisory authority for an opinion, prior to submitting it to the trustee in bankruptcy court.

section 236. Declared a savings bank, a cooperative or a mutual insurance company bankrupt, the trustee gives notice to the Danish Commerce and companies Agency and the Danish financial supervisory authority on bankruptcy beginning and end.

§ 237. The Minister for economic and business affairs may determine that the liquidator or trustee in bankruptcy of the estate account must notify policyholders about insurance company's settlement and on the implications for them.

(2). The Minister for economic and business affairs may lay down detailed rules concerning the date of form and content.

Suspension of payments

Section 238. The FSA may review receivership for financial companies, when the interests of depositors, policy-holders ' interests, investors or holders of debt so dictate.

(2). Notification of suspension of payments in accordance with paragraph 1 shall be accompanied by the Danish FSA proposals as to who should be appointed as oversight during the cessation of payments, as well as a statement from the person concerned that they are willing to do so and fulfils the conditions set out in section 238 of the Bankruptcy Act.

(3). Notification of cessation of payments may not be revoked by the financial business without the consent of the Danish FSA.

Compulsory composition

Section 239. The Bankruptcy Act rules on compulsory settlement with FSA authorisation shall apply to insurance undertakings, with the exception of life insurance companies. By composition of FSA authorisation replaces the reinsurers accession declarations as provided for in the Bankruptcy Act, section 166, paragraph 1, no. 2. Prior to the Danish financial supervisory authority to ensure that the reinsurance undertaking has contacted all known creditors on the opening of compulsory settlement proceedings, and that at least 40 per cent of the votes, to provide feedback to accede to such negotiations.

(2). In connection with the status list to be drawn up at the opening of the debate on the composition of the basic regulation. the Bankruptcy Act, section 165, the bankruptcy court by composition of reinsurance companies after hearing of the Danish financial supervisory authority may designate an independent actuary to carry out an inventory of the value of the claims, which are pending.

(3). By composition of reinsurers will be summed up the requirements pursuant to the Bankruptcy Act § 176 on the adoption of a compulsory composition in relation to the attendees and declared requirements.

section 240. The provisions of this law on the Ministry of economic and business affairs and the powers of the FSA and financial companies ' obligations to the satisfaction of the Minister for economic and business affairs and the financial supervisory authority shall, with the necessary adaptations, apply for such companies, which have stopped their payments or are under resolution.

section 241. The Danish public companies Act Chapter 14 mutatis tillempelser apply to savings banks, cooperative banks and mutual insurance companies.

section 242. The Minister for economic and business affairs lays down rules for the purposes of rules of Community law on the reorganisation and winding up of credit institutions and insurance companies.

section 243. The Danish financial supervisory authority may, in accordance with the procedures laid down in Community law rules thereof, prohibit a foreign credit institution, financial institution, investment firm, investment management company or insurance undertaking subject to section 30, paragraph 1, and section 31, paragraph 1, established in another country within the European Union or in a country with which the community has entered into an agreement on financial matters, to carry on business in Denmark through a branch or by providing services in this country. The FSA may prohibit the in 1. paragraph referred companies to engage in activity as mentioned in 1. point, if the company is grossly or repeatedly violated the provisions of this Act, the regulations issued pursuant to the law or other legislation that is aimed at the credit institution, financial institution, investment firm, investment management company or the insurance company, and not by orders or sanctions after this law has been possible to bring the infringement to an end.

Chapter 16

Crisis management

Special rules for financial institutions

section 244. The Minister for economic and business affairs to create a valuation Board, see. § 245, as in the case of a tax-free mergers or transfers of assets between financial institutions as a result of a financial institution no longer fulfils the solvency requirement in section 124 or is in nearby threat thereof may impose the tax value of the merger date of loans and guarantees, etc. in the distressed financial institution. Similarly, the Tribunal in respect of a taxable transfer decision on the tax value of the lending and guarantees, etc. at the time of the transfer, where the transfer takes place as part of the liquidation of a troubled financial institution. The Board can only decide at the request of one of the involved financial institutions.

section 245. Valuation Tribunal shall consist of 3 members. The Minister for economic and business affairs, with the agreement of the tax Minister appoints Committee members and alternates. The members and alternates shall be appointed for 4 years.

(2). The Committee President shall represent the legal, financial or accounting expertise, and the other members must have a particular expertise in the valuation of assets and liabilities.

(3). The Minister for economic and business affairs shall lay down the detailed rules for payment of the Board's decisions.

(4). The Committee must take a decision within 5 days after the Committee has received an adequate basis for a position.

(5). The Board's decisions cannot be brought before a higher administrative authority and to be taken into account by the tax authorities in the equation.

(6). The Minister for economic and business affairs may, in agreement with the tax Minister lay down rules for the Board's business.

section 246. Meet a financial institution not capital requirement set out in section 124, paragraphs 2, 3, 5, 7 and 8, and provides for a time limit of the Danish financial supervisory authority for rebuilding the capital, see. § 225 (1), the Board of Directors may summon the money the Department's top authority with 3 days notice for a resolution of the necessary measures to comply with the requirements pursuant to section 124 of the Act, paragraphs 2, 3, 5, 7 and 8.


(2). Money the institution's Board of Directors can in the situation referred to in paragraph 1 transfer money the Foundation's activities in whole or in part to another financial institution, without prejudice. However, § 204 (1) of the Ministry of economic and business Minister's approval. The agreement on the handover must be conditional on such approval. The Board shall convene at the same money the Department's top authority, see. (1). The Board shall at the general meeting or in the savings banks in representative community account for money the Foundation's situation as well as the agreement reached. If at the general meeting or in the savings banks in the Board of governors deciding on other measures, implying that the Bank complies with the requirement in article 124, paragraph 2, 3, 5, 7 and 8, or a winding up order on such terms, as the Danish FSA can approve, cancelled it in 2. PT said agreement on the transfer.

(3). Request containing the agenda for what matters to be dealt with, and the main content of any proposal for amendment of the articles of Association shall be sent to all known shareholders, shareholders or members of the Board of regulators in the savings banks. At the same time, should there be open call in accordance with section 67.

(4). No later than 24 hours prior to the holding of the general meeting or in the savings banks representative meeting agenda and the complete proposal must be submitted for review to the shareholders, the cooperative gardens or in savings banks representative community members on the money the Foundation's head office.

(5). Resolution on the measures referred to in paragraph 1, regardless of the Danish public companies Act §§ 78 and 79 are always taken with two thirds of the represented capital. If half of the share capital represented at the general meeting, the decision on the measures to be taken by a simple majority. In savings banks and cooperative banks may resolution on measures pursuant to paragraph 1 are always taken with two thirds of the attendants, in savings banks representative members and cooperative banks shareholders.

(6). In paragraphs 1 to 5 shall apply regardless of the provisions of the statutes and practices accordingly.

section 247. The Bank has lost equity, the Board of Directors may entrust the money the Foundation's activities in whole or in part to another financial institution, without prejudice. However, § 204 (1) of the Ministry of economic and business Minister's approval.

(2). The Board must also invite the shareholders, the cooperative gardens or in savings banks representative members to a briefing on the outline. This meeting must be held no later than 8 days after the decision, and the necessary costs incurred by the acquiring financial institution has the right to participate in the meeting.

(3). They referred to in paragraphs 1 and 2 shall apply regardless of the provisions of the statutes and practices accordingly.

§ 247 a. involves the FSA a money institution authorized under section 224 (1), nr. 1 or 2, shall submit the FSA pursuant to section 234, paragraph 1, or the Bank petition for bankruptcy or is declared bankrupt in accordance with the request of the other financial institution, shall take the DFSA's decision, that the Foundation's money back payment to the holders of covered bonds issued by financial institution taken during administration. The Danish financial supervisory authority can in situations covered by section 224, paragraph 3, nr. 1, also make the decision that the Foundation's money back payment to the holders of covered bonds issued by financial institution taken during administration. The Danish financial supervisory authority shall at the same time appoint an administrator to jointly with any medadministratorer to oversee the administration of back payment to the holders of covered bonds.

(2). When a financial institution's back payment to the holders of covered bonds issued by financial institution taken during administration, FSA cause that decisions on the Administration's implementation and Administrator's appointment is recorded or otherwise published in the Danish Commerce and companies Agency. The Administration must also notify the borrowers lived on that future payments for the individual borrower's payments on the loan can only be made to the Administration stayed with liberating effect.

(3). The administrator may appoint one or more medadministratorer with insight into circumstances which are relevant for the administration.

(4). Fees to administrators and other expenses in connection with the administration shall be provided by the Administration lived. Fee amount is determined after negotiation with the FSA.

(5). Administration the estate is subject to FSA supervision.

§ 247 b. By the beginning of the Administration to the registered assets, see. § 152 g, paragraph 1, immediately left to administration lived. Administration lived by the administrator shall be entitled to dispose of these assets. As regards Fund assets, it shall be registered in a central securities depository, as regards rights over immovable property, it shall be registered in the land register, and in the case of ships, must be recorded in a register.

(2). A financial institution shall be declared bankruptcy, leaving the administrator immediately the assets referred to in paragraph 1, to the administrator.

(3). Administrator must let the registered assets assess in accordance with rules laid down under section 152 h, nr. 2.

(4). Administration lived can not be completed before all of the bonds, as the assets in the register is to guarantee is fulfilled and the financial instruments has become chargeable.

(5). A financial institution shall be declared bankrupt, after the Administration has begun, given the bankruptcy has no effect for Administration lived.

(6). The administrator shall manage the assets received from the Bank, and may at the Bank, possibly by bailiff, require all necessary material handed over to the administration.

§ 247 c. Declared bankruptcy, a financial institution or a financial institution does not comply with the obligation to provide additional security under section 152 (a), paragraph 2, can this not by the holders of the covered bonds or of lenders under section 152 (b), paragraph 1, be invoked as a reason for the early repayment of the payment obligations. It deprives nor borrowers whose loans are granted on the basis of the covered bonds, any right to make total or partial repayment of the loan in accordance with the conditions applicable to the loan.

§ 247 d. Declared bankruptcy, used a financial institution assets in the register, including financial instruments, measured after deduction of expenses to the administrator, to the payment of claims from the holders of the covered bonds and counterparties in financial instruments, as the registered assets and agreements underpinning. Then covered loans, as the Bank has admitted to use in order to provide additional security, see. section 152 (b), paragraph 1. Excess funds are included in the estate, see. section 32 of the Bankruptcy Act.

(2). The individual holders of covered bonds, counterparts on the financial instruments and the lenders pursuant to section 152 (b), paragraph 1, may not make claims against the estate. On the other hand, can an administrator on behalf of the estate administration review claims against the estate on what is missing following the assessment to obtain satisfaction the holders of the covered bonds, counterparts on the financial instruments and the lenders pursuant to section 152 (b), as well as requirements on the interest incurred the said claims from the bankruptcy of the Decree has been given, to bond holders, counterparts on the financial instruments and the lenders pursuant to section 152 (b) can be satisfied.

(3). Funds in the register is insufficient for satisfaction of the holders of the covered bonds and counterparties on the registered financial instruments as well as to cover the debt, which the Bank has admitted to use in order to provide additional security, see. section 152 (b), paragraph 1, the administrator at the end of the review uncovered residual estate management requirements of money the institution's estate as simple requirements.

(4). Any excess funds in a register cannot be transferred to other registries, but must be carried over to the bankruptcy estate.

(5). Setting off from a creditor within the meaning of the Bankruptcy Act section 42 cannot find place to satisfy a debt due to the Bank, which are connected with the loan recorded on background of covered bonds issued by the Bank.

§ 247 e. Proceeds from loans, as banks have admitted to the use of the requirement to provide additional security, see. section 152 (a), paragraph 2, which does not form part of a filing system, in cases of Bank bankruptcy serve to cover by the holders of the covered bonds and counterparties of the financial instruments in the directory to which the loan is recorded for use in order to provide additional security. Any excess funds to be paid to lender.

§ 247 such Holders of bonds that have lost the designation covered bonds, see. section 152 (a) (3) 1. point, and counterparties on the registered agreements for financial instruments, such as the registered assets and agreements underpinning, it retains the bankruptcy legal status granted to the holders of covered bonds and financial counterparties, in accordance with article 3. § 247 d, paragraph 1 1. Pkt. Similarly, loans, as the Bank has admitted to use in order to provide additional security, see. section 152 (b).

(2). Any remaining requirements notified by administrator in money the Foundation's bankruptcy estate as simple requirements.


(3). The rules in section 152 (a), paragraph 1 1. section 152 (b), sections 152 (h) and § § 247-a-247 (e) shall apply mutatis mutandis for the bonds, which have lost the designation covered bonds, see. section 152 (a) (3), as well as financial instruments linked to it.

Special rules for insurers on restoration and other measures

§ 248. If an insurance company's basic capital is lower than the capital requirement referred to in article 6. section 127, the FSA require, the company shall prepare a plan for the restoration of its economic position and shall submit the plan to the Danish financial supervisory authority for determining whether the plan lists the measures that are necessary.

(2). FSA sets out detailed provisions on the information plan for recovery must contain, and whether the period for which the plan must be drawn up.

(3). The company's plan must aim for a restoration of its economic position over a shorter period to be determined by the financial supervisory authority, when





1) the basic capital of an insurance company is less than one-third of the solvency requirement,

2) basic capital of an insurance company is less than the minimum capital requirement or

3) core capital elements in insurance companies being paid up equity and guarantee capital, surplus accounts, other reserves not corresponding to underwriting liabilities transferred surplus or deficit, member accounts, special bonus provisions of the type B and the year current result, makes up less than one-third of the solvency requirement, or add up to an amount less than the minimum capital requirement.





(4). Under the law, the company has submitted a business plan for the Danish financial supervisory authority, shall take the oversight in the event that there has been a deterioration of the financial position of the company in relation to this plan, decide upon the necessary measures and can including require to draw up a new business plan for the three following financial year.

section 249. FSA imposes a life assurance undertaking within a supervision period to carry out the measures necessary, if





1) the company does not comply with this Act,

2) the company differs from the existing basis of his business,

3) in nr. 2 the said basis or the way in which the company's products have been placed, is not reassuring,

4) it turns out that they are to cover the technical provisions provided funds are not comforting or

5) the financial position of the company is so deteriorated that the insured's interests are at risk.





(2). Is the required measures are not taken in the pursuant to paragraph 1, the period laid down, and estimated failure to cause danger to the insured, the insurance company's stock can be taken during administration pursuant to §§ 253-258.

(3). A portfolio should be taken under the administration, if it turns out that, pursuant to paragraph 1, the period laid down, they are not available to cover the technical provisions necessary resources.

(4). Enter a company in liquidation, the Danish financial supervisory authority can decide on that company's portfolio is taken under administration.

(5). FSA finds that when insurance stocks are taken under administration, also will be required to dissolve the company, it shall take a decision to that effect supervision.

section 250. FSA imposes an insurance company, there is no assurance company, within a period specified by the FSA to carry out the measures necessary, if





1) company has not accrued sufficient amount to cover insurance liabilities

2) FSA does not consider the way in which the company's products have been placed, comforting or

3) the company does not comply with this law.





(2). Is the required measures are not taken within the prescribed period, and estimated failure to cause danger to the insured, the Danish financial supervisory authority may provide that the company shall enter into liquidation. If the company driver working accident insurance company, the Danish financial supervisory authority to revoke the company's licence to operate labour accident insurance company, after which the portfolio is taken under the administration of injuries pursuant to section 54 of the law on workers ' compensation.

§ 251. As part of the in Section 248 (3), section 249 (1) and § 250, paragraph 1, such measures can the FSA may prohibit the company to dispose of its assets or restrict its available above. section 167 shall apply mutatis mutandis.

section 252. The Danish financial supervisory authority shall as soon as possible after the winding-up proceedings in accordance with section 250 is joined, in consultation with the liquidators let examine whether it would be appropriate to search portfolios in whole or in part, transferred to one or more insurance companies. Received there offer of such acquisition, the Danish financial supervisory authority, if it can find the offer acceptable, let prepare a statement on the transfer and a proposed agreement with the concerned company.

(2). The statement and the proposal must be published in the Official Gazette and in newspapers. The statement must include a call to the insured within a period specified by the FSA, which shall not be shorter than 1 month, writing to inform the FSA if they have objections to the transfer. The company must at the same time to the policyholders, whose address the company is known, broadcast the statement and the proposal.

(3). After the expiry of the period referred to in paragraph 2 shall take the Minister for economic and business affairs, taking into account the objections raised by decision on the compatibility of the insurance stock may be transferred in accordance with the proposals put forward.

(4). The Danish financial supervisory authority may in connection with the prepared statement after negotiation with the acquiring company may provide that assurance, which was designed for a period of more than 1 year, of both parties may be terminated in accordance with the rules, which, according to the insurance agreement is in force, if the agreement contained in the multi-annual period had expired. The rules governing this access termination must be reproduced in the FSA's statement.

(5). § 27, paragraph 2, of the law on insurance contracts shall apply mutatis mutandis, until the Minister for economic and Business Affairs has taken a decision in accordance with paragraph 3. The transfer takes place in accordance with the decision of the Minister of economic and business, liquidation and transfer regardless of the law on insurance contracts §§ 26 and 27 will not be relied upon as a basis for raising the insurance contract.

Special rules for insurance companies about managing a provident stock

section 253. The Danish financial supervisory authority shall take a decision declaring that a life insurance company portfolios taken under management according to § 224 (1), nr. 1 and 2, and paragraph 5, section 226, paragraphs 3 and 4, section 234, (5) or section 249, appointed by the Danish financial supervisory authority at the same time an administrator to jointly with any medadministratorer to conduct insurance stock administration.

(2). When a portfolio is taken under administration, the Danish financial supervisory authority to revoke the company's licence as well as life assurance lead decisions on the Administration's implementation, the Administrator's appointment, as well as the permit revocation registered in the Danish Commerce and companies Agency.

(3). In order to ensure the Administration's justifiable representation can administrator designate one or more medadministratorer with insight in to the Administration the relevant circumstances. § 108 shall apply mutatis mutandis in connection with administration whereas.

(4). Expenditure after tax laws is the responsibility of management, consisting of the insured, the estate shall be provided by the Administration lived by administrator.

(5). Fees to administrators and other expenses in connection with the administration shall be provided by the Administration lived. Honorarernes to be determined after negotiation with the FSA.

(6). Administration the estate is subject to FSA supervision.

§ 254. At the beginning of the Administration, they must in section 167, paragraph 1, the said registered assets immediately left to administration lived. Administration lived by the administrator shall be entitled to dispose of these assets. As regards Fund assets, it shall be registered in a central securities depository and, in the case of real estate, in the land register.

(2). A life insurance company is declared bankrupt, the bankruptcy court shall transmit immediately the assets referred to in paragraph 1 to the administrator.

(3). Administrator must let the registered assets assess in accordance with the applicable valuation rules.

(4). The individual insured may not make claims against the company. On the other hand, can an administrator on behalf of the estate administration to demand answers from the company, what the assessment of the acquired assets, see. (3) deficiencies, to technical provisions and pending and overdue insurance claims after the calculation referred to in section 256 is covered. Furthermore, can an administrator on behalf of the estate of Administration require an amount equal to the company's capital requirements established at the beginning of the estate administration.

(5). Declared bankruptcy after a life assurance undertaking, that the Administration has begun, given the bankruptcy has no effect for Administration lived.


(6). The administrator shall manage the assets received from the company and can be with the company, possibly by bailiff, require all necessary material handed over to the administration.

Section 255. When insurance stocks are taken under the administration, can repurchase of insurance do not take place. However, genkøbsværdien can be used to cover in whole or in part of the in section 162 (1) (8). 7, said policelån.

section 256. Administrator shall calculate the technical provisions and determine the size of the pending and overdue requirements for insurance contracts by the start of the administration.

(2). Insurance claims, which before the beginning of the Administration was overdue or recorded, shall be settled in accordance with the rules in force before that date. Insurances that are due later, should provisionally be cashed out with so large an amount, as an administrator, as the case may be shall securely. Shows the final determination of the amounts of insurance regulation. (4) that in this way are paid too much, the repayment is not required.

(3). Technical provisions shall be calculated by applying it for the company notified basis, see. section 20 unless the administrator considers it necessary to provide a different basis of calculation, which is notified to the FSA.

(4). The fixing of insurance amounts, including a possible reduction of this regulation. section 257 (1), 4. paragraph, or section 259, paragraph 1 1. item, be carried out in accordance with the applicable in accordance with paragraph 3, the calculation basis and after a breakdown of company's assets, which in each case must be considered reasonable, taking into account the conditions in insurance stocks, including the contents of the insurance contracts.

section 257. Administrator must as soon as possible after the assessment and calculation under section 254, paragraph 3, and § 256 has taken place, search the entire portfolio has been taken over by one or more insurance companies. Received there offer of such a takeover, the administrator may apply for economic and business Minister's authorization for the transfer. Application for transfer must be accompanied by the agreement concluded between administration lived and the acquiring company, and of such information about this company, as the Minister for economic and Business Affairs deems necessary in order to be able to judge whether the transfer is a sound of policyholders. The agreement entails a reduction of insurance amounts or change of insurance terms and conditions, including the bonus rules, this must be specified.

(2). Unless the Minister for economic and Business Affairs on the present basis shall, to authorise the transfer should be denied, the Danish financial supervisory authority publish a statement of the intended transfer in the Official Gazette and in newspapers. The statement must include a call to the insured within a period specified by the FSA, which shall not be shorter than 1 month, writing to inform the FSA if they have objections to the transfer. The company must at the same time to the policyholders, whose address the company is known, broadcast the statement and the proposal.

(3). After the expiry of the period referred to in paragraph 2 shall take the Minister for economic and business affairs, taking into account the objections raised by decision on the compatibility of the insurance stock may be transferred in accordance with the proposals put forward. The transfer may not be invoked as a basis for raising the insurance contract.

(4). The transfer is done in such a way, that not all the assets are used, the Administration should give an administrator the excess amount to the company or its bo.

Section 258. Portfolio may not be transferable pursuant to section 257, the administrator shall make the final determination of the amounts of insurance pursuant to the statement made and any changes to the insurance terms and conditions, including the bonus rules, and convene a general meeting of the policyholders for the formation of a mutual company with management lived as pins, see. § 23 and § 3 of the Danish public companies act. To this general meeting is given two months ' notice. The call, and an explanation of the content of the document and the incorporation of the administrator calculated the fixing of insurance amounts published in the article 257, paragraph 2 specified way.

(2). By registration arises the mutual society within the meaning of § 254, paragraph 4, that court against the former company.

(3). Can there not be formed a new company, continued the Administration, and the administrator shall consider whether further attempts to transfer the insurance to a new or another company to be carried out.

Chapter 17

(repealed)

Title VIII

Special rules for insurance companies

Chapter 18

Special rules for insurance companies

Mutual insurance companies ' members and their liability for the company's obligations

section 284. Members of a mutual insurance company is the company's policyholders and only these.

(2). If members should be liable for the company's obligations to the extent of which shall be laid down in the statutes.

(3). Members ' liability for the company's obligations can only be invoked by the company.

(4). The company's claim against members for fulfillment of liability for the company's obligations may not be assigned or pledged.

section 285. The Danish financial supervisory authority may lay down rules for the mutual insurance companies regarding liability for members and guarantors, repayment of the guarantee capital and conditions for distribution to members of the company's funds.

§ 286. Become an insurance company policyholder in a mutual reinsurance company, it may, in accordance with the statutes agreed that it should be relieved of the responsibility of the Member. The total amount of such reinsurance, at its own expense, however, for life insurance may not exceed 10 per cent of the acquiring company's total value insured. For annuity insurance shall for the purposes of this calculation the amount insured is considered equal to ten times the annual amount of interest. For non-life insurance premium of such reinsurance must not without FSA authorisation to exceed 10 percent of the company's total premium income.

Deposit of guarantee shares etc. in mutual insurance companies

§ 287. A mutual insurance company may not, for consideration, to own or acquire own mortgage guarantee units.

(2). A mutual insurance company subsidiaries shall not, for consideration, to own or guarantee mortgages to acquire the shares in the parent company.

§ 288. In a mutual insurance undertaking must be kept a book of guaranteed shares.

(2). Guarantee the shares shall be recorded in the book stating the garanternes name, occupation and residence.

(3). The company must provide a guarantee on the share listing, see. (2).

General Assembly in mutual insurance companies

§ 289. Proceedings in respect of a decision of the general meeting, which has not been to in legal way or is contrary to this Act or the company's articles of Association, may be brought by a vote, a member of the Board of directors or by one Director.

(2). Case must be brought not later than 3 months following the decision. Otherwise, the decision shall be considered as valid.

(3). The time limit referred to in paragraph 2 shall not apply where





1) decision is not legally able to be taken even with all of the voice's consent,

According to the company's articles of Association 2) required consent to the resolution of all or certain members, guarantors or voting and such consent is not given,

3) summons to the general meeting has not happened or the rules in force for the convening of the company significantly is infringed or

4) the who has raised the matter after the expiry of the time specified in paragraph 2, but no later than 2 years after the decision, have had reasonable cause for the delay and the right as a result of this, and taking into account the circumstances, moreover, considers that the application of the provisions in paragraph 2 would lead to obvious ubillighed.





(4). The Court considers that the decision has not been taken by the General on the legal way or is contrary to this Act or the company's articles of Association, see. paragraph 1, it shall by dom known invalid or modified. A change in the General Assembly resolution, however, can only happen if decommissioned claim thereon and the Court is unable to determine which content decision rightfully should have had. Decision of the Court of first instance shall take effect for all members and guarantors.

Dividend distribution, Security Fund, etc.

section 290. As dividends to shareholders, interest to the guarantors or payout to members of mutuals can only be applied to profit (profit) in accordance with the approved annual report for the last financial year, of retained earnings from previous years and other reserves which are not bound by virtue of the law or the company's articles of Association, after deduction of the uncovered deficits on the one hand and, on the other hand, the amounts pursuant to the law or the company's articles of Association are to be assigned to a Security Fund or for other purposes.

(2). As extraordinary dividends can be applied to products covered by paragraph 1, and profits in the current financial year up to the date of the balance between the regulation. the Danish public companies act § 109 (a), paragraph 3, nr. 1, if the amount is not distributed, consumed or bound. Distributable reserves has occurred or been released in the current fiscal year, can also be used to extraordinary dividends.


§ 291. As long as the company's capital base does not meet capital requirements pursuant to this law, may not be paid dividends or extraordinary dividends to shareholders, interest to the guarantors or amount to members of mutuals.

§ 292. In private insurance companies can distribution of the company's funds to shareholders in addition to sections 290 and 291 take place only as distribution in connection with the reduction of the share capital or dissolution, including liquidations. In mutual societies can in fact only be distribution to members in accordance with the rules laid down in the statutes.

(2). Dividends or extraordinary dividends to shareholders, interest to the guarantors or payout to members of mutuals should not exceed what is justifiable, taking into account the company's and the Group's financial position of the parent companies.

§ 293. An insurance company may, if the articles of association contain provisions to this effect, make provisions for a Security Fund.

(2). Funds deposited to the Security Fund, cannot be removed from this. There can neither be made amendments with the effect that the funds referred to in paragraph 1 is already assigned to the Security Fund, may be removed from this.

Special rules for mutual property and casualty insurance companies with limited purpose

§ 294. The provisions of sections 295-303 includes mutual property and casualty insurance companies, if the Statute contains an indication of





1) that its purpose is limited to taking out insurance against accident and illness so that the insured is also insured, or to take out insurance for livestock,

2) that the company only operates in this country,

3) that the company did not draw insurances for longer periods than one year at a time,

4) that the company only accounts direct insurance,

5) the maximum amount which the company without reinsurance can take over on single risk, or that the rules thereon shall be determined by the financial supervisory authority in connection with the granting of an authorisation, as well as

6) option for calling up additional contributions or reducing their benefits;.





(2). A mutual life insurance company are not covered by the provisions of this chapter, provided that





1) the annual premium income exceeding an amount prescribed by the FSA or

2) less than half the annual premium income derived from natural persons who are members of the company.





§ 295. The provisions of § 112, no. 2, and section 126, paragraph 2, as well as the Danish public companies Act § § 3 and 5, § 6, paragraph 1 and 3-5, sections 7-10 and section 11 (1) and (3) shall not apply to the formation of companies covered by this chapter.

(2). It can be determined in the statutes, not to be appointed an Executive Board.

section 296. Longitude, by members or guarantors may not take place before the draft statute is drawn up. The draft must be submitted by written with community residents.

(2). Constituent general meeting must be held within 6 months after the written with community residents has begun, unless no members or guarantors are traced. In the latter case, the lapse by subscription of share capital commitments, and amount deposited refunded, however, with the deduction of costs incurred to the extent that this is conditional upon the drawing.

(3). The inaugural general Assembly convened the voting according to the draft statutes.

(4). The general meeting shall decide by ordinary majority vote resolution on approval of the Statute and whether the company should be formed. Decision amending the draft statutes can be taken with common majority regardless of the draft provisions on changes after the Foundation. Decision on the amendment, which is not specified in the call, however, requires consent from all eligible to vote. Decision about formation should not be taken until the statutes are finally approved.

(5). When the company is founded, elected Board of Directors and statutory auditors in accordance with the provisions of the statutes.

section 297. The company must be reported to the registration in the Danish Commerce and companies agency within 2 months of the constituent general meeting. After the said deadline, the lapses by the drawing of the company capital commitments, see. section 296 (2) 2. Item Registration cannot take place.

(2). At the latest at the same time as the notification to registration in the Danish Commerce and companies agency company must submit applications for authorisation to the Danish FSA. With the application should follow confirmed transcript of members elected by the Protocol.

§ 298. The scheme of operations referred to in article 18 may with the FSA authorisation be limited in the number of years or be omitted where it is not necessary for the determination of the basic capital. The FSA may also taking into account the nature and extent of the permit in the absence of any share capital or some other form of capital base.

section 299. The company has no Executive Board, performed the duties there in law or pursuant to law assigned to the Executive Board, of the Board of Directors.

§ 300. Members of the Board of Directors and of the Executive Board represent the company externally.

(2). The company is bound by legal acts on its behalf concluded by the entire Board of directors or by a member of the Board of directors or by one Director.

(3). The tegningsret, which, in paragraph 2, it is for each Member of the Board of Directors and of the Executive Board, in the articles of association can be restricted so that the subscription right can only be exercised by one or more specific members or by more in the Association. The second limitation of the drawing right may not be registered.

(4). Procuration may be granted only by the Executive Board. § 66 shall not apply.

§ 301. Mutual property and casualty insurance companies covered by article 294, paragraph 1, and which only operate within a narrow limited land area, are not covered by this law, the provisions of the basic regulation. However, paragraphs 2 and 3, provided that they included assurances combined does not exceed 3 million. us $.

(2). Companies covered by paragraph 1 shall, however, describe themselves as mutual. section 11, paragraph 4, shall apply mutatis mutandis.

(3). Is a mutual property and casualty insurance company subject to supervision under this law, remains the company under supervision, although it subsequently fulfils the conditions for exemption under paragraph 1. The FSA may, however, exempt the company for the control, if the company makes a request to that effect in accordance with a decision of the general meeting.

§ 302. The Danish financial supervisory authority may exempt a mutual property and casualty insurance company subject to section 294, paragraph 1, of this law provisions, provided that





1) total insurance does not exceed 6 m. and the company's risk on a single insurance does not exceed 3 per cent of its total annual premium income or

2) company only accounts insurance within a limited land area and only for a single insurance branch.





(2). For the purposes of paragraph 1, nr. 1 shall not be taken into account, in the extent to which the company has hedged its risk reinsurance.

(3). The Danish financial supervisory authority may apply the provisions of paragraph 1, nr. 2, although the company draw insurances which are not covered by section 294 (1). 1, when the company, however, did not draw a public liability insurance, workers ' compensation insurance, motor insurance, suretyship insurance or credit insurance.

(4). A company's request for exemption pursuant to paragraph 1 shall be approved by the general Assembly.

Section 303. Making a mutual property and casualty insurance company subject to the rules laid down in this chapter, an application pursuant to the decision of the general meeting, the Danish financial supervisory authority may provide that the company shall be subject to this law. When such a determination is made, the provisions of this chapter, however, on new used if FSA allows it.

Specific rules concerning lateral pension funds

section 304. By lateral pension funds shall mean associations or groups,





1) whose members are trained either in specific training areas or are employed in companies of a given species, and as a aims as part of the conditions of employment or as part of another association with a company to secure a pension in accordance with uniform rules for all members, or

2) whose members are self-employed persons within the same industry, and as a aims to ensure pension in accordance with uniform rules for all members.





section 305. Provisions for mutual life insurance companies will find with the exceptions referred to in paragraph 2 shall apply mutatis mutandis for the lateral pension funds.

(2). § 284, paragraphs 2 to 4, shall not apply to lateral pension funds.

section 306. The Danish financial supervisory authority may lay down detailed rules on the delimitation of the transverse institution membership and activities.

Special rules on labour market related life insurance company

section 307. At a labour market related life insurance Ltd. means a life assurance Ltd., which





1) directly or indirectly wholly owned by policyholders ' professional organisations, possibly jointly with the relevant industries employers ' organisations,

2) is established as a result of a contractual agreement and

3) according to the articles of Association does not pay dividends to the owners.






(2). Of the company's articles of Association shall in addition to paragraph 1, nr. 3, said that the company is a ' labour market related life insurance Ltd. '.

(3). The sale of shares in the company to anyone other than that referred to in paragraph 1, no. 1, said circle or modification of the company's articles of Association relating to the in (1). 3, and paragraph 2, the relationship can not be done without FSA approval. FSA authorisation can only granted, if the sale or the amendment is deemed to be the insured's interest.

(4). Of the company's articles of Association shall also specify the manner in which treatment with company's assets when there is no longer any insurance claims against the company. Of the staff regulations the provision should state that the tax free savings part of the equity is to be used for non-profit or charitable purposes.

(5). The company will transfer its portfolio, the company must use the tax-free savings portion of equity in favour of the insured. In the event of a transfer of a specific portion of the portfolio, it is only the proportion of the tax free savings part of shareholders ' equity to be used for the benefit of the insured.

Title IX

Issuers of electronic money

Chapter 19

Issuers of electronic money

Introductory provisions

Section 308. Companies engaged in activities consisting in issuing means of payment in the form of electronic money must have permissions as issuers of electronic money. By electronic money means a monetary value as represented by a claim on the issuer which is stored on an electronic medium. Electronic money institutions shall not be issued to premium and must be recognized as a means of payment by undertakings other than the issuer.

(2). Issuers of electronic money must be apart from the issuance of electronic money only do business that includes





1) the provision of closely related financial or other kind of services and

2) storage on the electronic device on behalf of other undertakings or public institutions.





(3). Issuers of electronic money and banking institutions have the exclusive right to issue electronic money.

(4). A company applying for authorization in accordance with paragraph 1, shall have a share capital, which at least represents an amount equivalent to 1 million. euro.

(5). With the exception of paragraph 7, the provisions of this chapter shall not apply to undertakings issuing electronic money, if there is a maximum of 150 euros can be stored on the electronic medium, and one of the following conditions are met:





1) company's total financial liabilities related to outstanding electronic money shall at no time exceed 6 million. euro, see. (6). Outstanding electronic money must not exceed EUR 5 million on average. euro, see. (6).

2) the electronic money issued by the company shall be recognised only as a method of payment of affiliates, or

3) the electronic money issued by the company shall be recognised only as a method of payment by a limited number of companies that can be clearly identified by their location on the same site or in another limited local area or by their close financial or business connection to the company, see. However, paragraph 7.





(6). In the calculation of the outstanding electronic money amounts, without prejudice. paragraph 5, nr. 1, outstanding electronic money shall be taken into account by the issuer itself receives as a method of payment, not for the purpose of calculating the amounts. Average, see. paragraph 5, nr. 1, is calculated as the weighted average of the latest 6 months of outstanding electronic money amount at the end of the month. As weights used the sum of the most recent monthly electronic payments to undertakings other than the issuer divided by the sum of the last month's total use as means of payment for the prepaid funds.

(7). Companies that are not covered by this chapter, see. (5) must annually give an account of their activities, including those relating to the size of the total amount of financial liabilities related to outstanding electronic money. The statement must be received in the Danish financial supervisory authority by 1. April.

section 309. Electronic money institutions shall not issue electronic money with a higher value than 300 euro.

§ 310. Electronic money institutions shall not hold shares in other companies, unless these companies perform operational or other ancillary functions related to electronic money issued or distributed by the issuer concerned.

section 311. A bearer of electronic money may, during the period of validity and for up to 1 year after expiry may request the issuer or the issuing financial institution to get the balance redeemed at face in coins and bank notes or by a transfer to an account in a financial institution without other costs than those which are necessary in order to complete your transaction.

(2). Conditions for genindløselighed in accordance with paragraph 1 must be clearly stated in the agreement between the issuer and the holder. The agreement may be made for the amount below 25 KR. can not be redeemable.

Permission, etc.

Section 312. sections 13-15 for authorisation and section 30, paragraph 1, 4, 5, 9 and 10, section 31, paragraph 1, article 38, paragraph 1, no. 1-4 (2), (3) 1. paragraphs, and paragraphs 4 to 7, § 39, paragraph 1 1. paragraph, article 39, paragraph 2, 1. section, and section 40 of the pursuit of the company through a branch or by the provision of cross-border services shall apply mutatis mutandis to issuers of electronic money with the deviations mentioned in this article 313.

(2). An application for authorization to issue electronic money shall contain information about the expected targets for the financial liabilities related to outstanding electronic money amount after 6 months.

section 313. A foreign issuer of electronic money, who wants to carry on business through a branch or by provision of services here in the country in accordance with § 312, see. section 30, paragraph 1, 4, 5, 9 and 10, section 31, paragraph 1, can only issue electronic money.

(2). An issuer of electronic money, who wants to carry on business through a branch, by the provision of services or by the establishment of the subsidiary in accordance with § 312, see. section 38 (1) (8). 1-4 (2), (3) 1. paragraphs, and paragraphs 4 to 7, § 39, paragraph 1 1. paragraph, article 39, paragraph 2, 1. section, and section 40 may only issue electronic money.

Section 314. The provisions of this chapter shall apply to branches of electronic money institutions which have their head office in a country outside the European Union, which the community has not concluded an agreement with in the financial sphere, with the deviations, as branch relationship requires, or as provided for in or pursuant to international agreement.

(2). The Danish public companies Act provisions relating to branches of foreign corporations apply to the branches referred to in paragraph 1.

Ownership

§ 315. § 5, paragraph 3, and § § 61 and 62 on the acquisition and possession of qualified shares in financial companies shall apply mutatis mutandis to issuers of electronic money.

Management

§ 316. sections 70 and 71 of written guidelines for a financial company's main areas of activity, etc. shall apply mutatis mutandis to issuers of electronic money.

The solvency

section 317. The basic capital of an issuer of electronic money shall at all times be at least 2% of the higher of the following amounts: the current value or to the previous six-month average of the total amount of financial liabilities related to outstanding electronic money. The average is calculated as the simple average of the latest 6 months of outstanding electronic money amount at the end of the month.

(2). An issuer of electronic money has not yet been operational in 6 months including the day when the operation starts, the base capital represent at least 2% of the higher of the following amounts: the current value or the amount that is set out as an objective for the financial liabilities related to outstanding electronic money amount after 6 months, see. Section 312, paragraph 2.

(3). If a member of the administrative, managerial or revision of an issuer must assume that the company does not meet the solvency requirement, see. paragraphs 1 and 2, they shall immediately communicate this to the Danish financial supervisory authority concerned. The Danish financial supervisory authority may lay down a period within which the solvency requirement must be fulfilled.

Section 318. The basic capital of an issuer of electronic money shall be calculated as the sum of paid-up share capital, share premium and reserves.

(2). The capital is reduced by the company's holding of own shares, intangible assets and tax assets as well as of the year continuously deficits.

section 319. Issuers of electronic money must be at the end of each six-month reporting solvency Declaration to the FSA. FSA sets out the detailed rules for this.

Funds placement

section 320. An issuer of electronic money shall at least be affixed, funds equivalent to the company's financial liabilities related to outstanding electronic money in the following assets:





1) cash in hand,

2) claims on or guaranteed by central Governments or central banks of zone A,

3) claims on or guaranteed by the European communities,


4) claims on or guaranteed by Danish, Danish municipalities, county municipalities of Greenland and the Faroe Islands, or secured by securities issued by Danish, Danish municipalities, county municipalities of Greenland and the Faroe Islands, in 90 percent of the Security's market value,

5) claims on or guaranteed by regional and local authorities in the EEA countries or secured by securities issued by these regional and local authorities, where the competent authorities have given reduce within 90 percent of the Security's market value,

6) mortgage bonds and bonds issued by Danmarks skibskreditfond and

7) cash at banks in zone a.





(2). The Danish financial supervisory authority may lay down detailed rules for the placing of funds in assets other than those referred to in paragraph 1.

(3). By the estimation of the placed funds, see. paragraphs 1 and 2, included asset value with the smallest value of either the purchase price or market price.

(4). If the value of the total funds placed in the referred to in paragraphs 1 and 2 assets will be lower than the financial liabilities related to outstanding electronic money, the Danish financial supervisory authority responsible for ensuring that the issuer shall take the necessary measures immediately to rectify this situation. The Danish financial supervisory authority may in such cases, temporary permit, to the company's financial liabilities related to outstanding electronic money shall be met by means of assets other than those referred to in paragraphs 1 and 2 up to an amount of up to 5 per cent of these obligations or the entity's capital base, except that it is the lower of these two amounts that apply.

section 321. An issuer of electronic money holdings of funds placed in assets subject to § 320 (1). 6 and 7, shall not exceed the company's capital base by more than 20 times.

(2). An issuer's holdings of funds placed in assets subject to § 320 (1). 6, must not exceed 250 per cent of the company's capital base per issuer.

(3). An issuer's holdings of funds placed in assets subject to § 320 (1). 7, do not exceed 125% of the issuer's capital base per Department. There may, however, no more than 25 percent of the money be placed until the institution's capital base.

Section 322. If an issuer of electronic money interest rate risk is greater than 10 percent of the basic capital or currency indicator 1 is greater than 10 percent of the basic capital, sets out detailed rules on weighting of FSA market risks. Interest rate risk and currency indicator 1 is calculated as for financial institutions.

(2). Electronic money institutions may only use derivative financial instruments in order to reduce market risks.

Section 323. Issuers of electronic money must be at the end of each six-month reporting inventory for products fitting to the Danish FSA. FSA sets out the detailed rules for this.

Accounting and auditing

section 324. Law on operators of undertakings reporting financial statements, etc. are applicable to issuers of electronic money with the deviations mentioned in section 75, paragraph 199, paragraphs 1-7, and section 200 of the financial year, accountants and accountability.

(2). The financial year shall follow the calendar year. First financial period may include a shorter or longer period than 12 months up to a maximum of 18 months.

section 325. Issuers of electronic money must be at the end of each semester to make accounting reports to the FSA. FSA sets out the detailed rules for this.

Section 326. FSA sets out detailed rules on audits for issuers of electronic money. Including the FSA may lay down detailed rules on internal audit and system audit implementation in the data centres.

Withdrawal of authorization and termination

Section 327. The Danish financial supervisory authority may withdraw the authorisation to operate the business of electronic money institutions, if the company so requests.

(2). The Danish financial supervisory authority may withdraw an issuer of electronic money authorised,





1) if the company does not commence within 12 months of the permit notification,

2) if the entity shall not be exercised for a period exceeding 6 months,

3) if the issuer is guilty of serious or repeated violations of the provisions of this chapter or the regulations issued pursuant to the law or

4) in section 14 (1) (8). 2-7, in the cases referred to.





(3). The issuer does not meet the solvency requirement in section 317, and the company has not provided the capital within the prescribed pursuant to § 317 (3) deadline, the FSA must involve the consent. The Danish financial supervisory authority may provide that the Supervisory Board within a specified time limit regardless of the statutes provision must convene the general Assembly and explain the company's financial situation.

section 328. Meet an issuer of electronic money capital base is not the capital requirement at time of permission pursuant to section 308 (4), the FSA can either fix a period within which to bring basic capital up to this minimum or immediately withdraw authorization.

Section 329. Withdrawn permission for an issuer of electronic money, the company must be phased out. Other activities should not be included, before the settlement is completed.

(2). The dismantling is done in any way other than by liquidation or bankruptcy or under section 331, afviklingens the form, content and implementation shall be approved by the FSA.

section 330. section 228, § 231, paragraph 1, article 234, paragraphs 1-3, and sections 238 and 243 on the inclusion of authorization and termination shall apply mutatis mutandis to issuers of electronic money.

Fusion, etc.

section 331. A financial institution or an issuer of electronic money shall not without the permission of the Danish FSA merged with an issuer of electronic money.

Disclosure of information

§ 332. section 117 shall apply mutatis mutandis to issuers of electronic money.

Other provisions

§ 333. Chapter 21 on supervision, Chapter 22 on charges and chapter 23 on delegation and appeal provisions shall apply mutatis mutandis to issuers of electronic money.

Chapter 19 (a)

The money and pension Panel

§ 333 (a). The Minister for economic and business affairs reduces the money and pension Panel, which consists of a Chairman and eight members. The President must have special knowledge of consumer behaviour.

(2). The Panel shall be appointed in accordance with the following setting:





1) 1 member nominated by bankers and Brokerage Association in Denmark.

2) 1 member nominated by & Pension Insurance.

3) 1 member nominated by the mortgage Council.

4) 1 member is set by the Unit Council.

5) 1 member nominated by the national organisation in Denmark, Central Organization and academic Officials and officials ' Permanent Joint Council.

6) 1 member nominated by Danish shareholders Association.

7) 2 members nominated by the Danish Consumer Council.





(3). The Minister for economic and business affairs shall designate the money and pension Panel members for up to 4 years at a time. The Panel's Chairman and members can be re-designated.

(4). An alternate shall be appointed for each Member. By a member on the Member's behalf. the alternate participant decline

(5). The Minister for economic and Business Affairs sets out the money and pension Panel rules of procedure.

§ 333 (b). The money and pension Panel aims at an objective way to promote consumers ' interest in and knowledge of financial products and services.

(2). The Panel must





1) produce objective consumer information on financial products and services,

2) make and publish test of financial products and services, including testing carried out by the use of anonymous information gathering, and

3) undertake and publish studies on consumer relationship in the financial field.





(3). The money and pension Panel secretariat made available by the Ministry of economic and business affairs.

Title X

Sparevirksomheder

Chapter 20

Sparevirksomheder

Permission to sparevirksomheder

§ 334. Companies engaged in activities consisting of professionally or as an essential part of their operation to receive deposits or other repayable funds from the public, and who affixes the thus received funds in any other way than by insertion in a financial institution, must have permissions as an sparevirksomhed, if the company is not





1) subject to section 7, paragraph 1,

2) subject to section 8, paragraph 1,

3) subject to section 11, paragraph 1, or

4) created under the special law, or the establishment of which is not authorized under the special law.





(2). Companies applying for permission in accordance with paragraph 1, shall have a share capital, which at least represents an amount equivalent to 1 million. euro.

section 335. articles 13 and 14 shall apply mutatis mutandis to sparevirksomheder.

section 336. section 15 shall apply mutatis mutandis to sparevirksomheder.

(2). For sparevirksomheder, there is no joint-stock companies, the Danish public companies Act provisions on notification and registration, etc. accordingly.

Management

section 337. § § 70, 71 and 75 shall apply mutatis mutandis to sparevirksomheder.


section 338. The statutes must specify the depositors ' rights and obligations, as well as contain rules on the company's organization and management, etc. and on the fitting.

Capital

§ 339. Sparevirksomheder must have an equity, which at least represents an amount equivalent to 1 million. euro.

Accounts

section 340. The financial year shall follow the calendar year. First financial period may include a shorter or longer period of time, up to a maximum of 18 months.

§ 341. Sparevirksomhedens audited and approved annual report must be submitted to the FSA in two copies without undue delay after final approval. The annual report must be received no later than 4 months after the FSA in the end of the financial year.

(2). Sparevirksomheder must have at least one certified public accountant.

(3). A copy of the external auditor's audit minutes concerning the annual report must be submitted to the Danish financial supervisory authority at the same time with the submission of the annual report in accordance with paragraph 1.

(4). The Danish financial supervisory authority may lay down detailed rules for sparevirksomheder on accounting and auditing.

Withdrawal of authorization and termination

section 342. FSA finds that the continuation of one of this Act subject to sparevirksomhed on this basis will be unfair for the sake of the depositors ' interests, can the FSA include the permission.

(2). The provisions applicable to financial institutions on the inclusion of authorization and termination shall mutatis mutandis apply to sparevirksomheder.

Other provisions

§ 343. Chapter 21 on supervision, Chapter 22 on charges and chapter 23 on delegation and appeal provisions shall mutatis mutandis apply to sparevirksomheder.

(2). FSA sets out detailed rules on minimum requirements for the content of contracts for specific hedging plants.

Title X (a)

Investment advisors

Chapter 20 (a)

Investment advisors

The scope of the

§ 343 a. undertakings engaged in investment advice, see. § 343 (b), must have permissions as an investment advisor.

(2). The provision of paragraph 1 shall not apply to the following:





1) financial companies, see. § 5 (1) (8). 1.

2) collective investment schemes regulated by the Act on investment associations and special associations and other collective investment schemes, etc. and collective investment undertakings and pension funds whether coordinated at Community level or not and the depositaries and managers of such undertakings.

3) Advice provided to a parent undertaking, subsidiary undertaking of the parent undertaking or any of its subsidiaries (subsidiary).

4) Advice that only granted occasional in connection with professional activities, if this other company is regulated by law or other professional ethics provisions and these provisions do not exclude the provision of advice.

5) Advice that only relates to employee arrangements.

6) advice not met separately.

7) The managing company in an insurance management community.





(3). Investment advice under paragraph 1 can be exercised by public limited liability companies, partnerships, limited liability companies, limited partnerships, private partnerships and sole proprietorships.

§ 343 b. By investment advice for the purposes of personal recommendations to a client, either on request or on its own initiative of investment adviser one or more transactions relating to financial instruments, see. Annex 4, section A, point 1. 5.

Permission

§ 343 (c). The FSA must give permission for the provision of investment advice when





1) members of the company's Board of Directors and Executive Board meets the requirements of § 64,

2) the company has taken out a civil liability insurance covering the whole territory of the community or some other comparable guarantee against liability claims as a result of dereliction of duty, with a coverage of at least 1 million. Euro for each claim, subject to a minimum of 1.5 million. euro in total per year for all claims,

3) company's business processes and administrative matters is sound,

4) the company has its head office and registered office in Denmark,

5) owners of qualifying shares meeting the requirements in sections 61 and 62, and

6) the conditions set out in section 14 (1) (8). 4 and 5 are met.





(2). An application for authorisation in accordance with paragraph 1 shall contain





1) all the information necessary for the FSA assessment of whether the conditions in paragraph 1 are fulfilled,

2) information about, in which individual Member States within the European Union or in countries with which the community has entered into an agreement on the financial area to be engaged in activity, and

3) information on the amount of the qualified shares and the company's organization.





(3). § 14 (3), shall apply mutatis mutandis.

(4). When the Danish financial supervisory authority has authorised pursuant to paragraph 1, the Danish Commerce and companies Agency the necessary registrations.

(5). The Danish financial supervisory authority may lay down detailed rules concerning the information referred to in paragraph 1, no. 2, said liability insurance.

§ 343 d. investment advisers to engage in investment advice and activities that are ancillary thereto, see. Annex 4, section B, para. 3, 1. led.

Foreign investment advisors

§ 343 e. section 30, paragraph 1, 4 and 10, and section 31, paragraph 1, shall apply mutatis mutandis to investment advisers from another country within the European Union or from a country with which the community has entered into an agreement on the financial area.

Danish investment advisers abroad

§ 343 f. section 38 (1) (8). 1-4, paragraph 2, 4, 5 and 6, and section 39, paragraphs 1 and 2 shall apply mutatis mutandis to investment advisors in this country who want to engage in investment advice in another country within the European Union or in a country with which the community has entered into an agreement on the financial area.

(2). At the same time, with the transmission of information pursuant to section 38, paragraph 2, according to the FSA, to investeringsrådgiveren are not covered by a guarantee scheme in this country and the background to this.

(3). An investment adviser is required to notify the financial supervisory authority and the host country, any modification of the section 39, paragraphs 1 and 2, matters referred, no later than 1 month before the change is made. If it has not been possible to notify the FSA change, not later than 1 month before the change is made, the communication happen as soon as possible.

Good practice

§ 343 g. § 43 (1) and (2) shall apply mutatis mutandis to investment advisers.

Management and ownership

§ 343 h. § 61, paragraphs 1-4 and 6-8, § 62 and section 63 shall apply mutatis mutandis to investment advisers.

§ 343 i. § 64, paragraphs 1-3 shall apply mutatis mutandis to investment advisers.

(2). Paragraph 1 shall apply mutatis mutandis where the investment advice is not operated in the legal form.

§ 343 (j). An investment advisor shall organize and decorate your company in a way that ensures that the risk of conflicts of interest between the Advisor and the client is minimised.

Withdrawal of authorisation

§ 343 k. § and § 224, 223 (1) (8). 1, 3 and 4, shall apply mutatis mutandis to investment advisers.

(2). The Danish financial supervisory authority shall withdraw the authorization, if there is no longer a liability, see. § 343 c, paragraph 1, no. 2.

§ 343 l. an investment adviser permission lapses, when investeringsrådgiveren declared bankrupt or of the investment company shall come to an end in any other way.

(2). Operated investment advice in sole proprietorship, lapse the authorization when investeringsrådgiveren dies.

Supervision

§ 343 m. section 344 (1), § 345, § 346, section 348 (2) and § § 351, 352 and 354-356 shall apply mutatis mutandis to investment advisers.

(2). The Financial Business Council is included in the supervision referred to in paragraph 1 with the competence conferred on the Council under section 345 (2).

§ 343 n. companies who provide investment advice, once a year, submit the statement that the company fulfils the conditions laid down for authorisation under section 343 c.

(2). The Declaration referred to in paragraph 1 must be signed by the company's Board of Directors and the Management Board. If the company does not operate in the corporate form, the Declaration shall be signed by the day-to-day management.

Section XI

Supervision and Duties

Chapter 21

Supervision, etc.

General rules on supervision

§ 344. The Danish FSA shall ensure compliance with this law and by the regulations issued pursuant to the Act, except section 77 (1) and (2). However, the Danish Commerce and companies Agency shall ensure compliance with section 15 (1), (2) and (4) and sections 83, 87, 91 and 112. The Danish securities Council shall check with the FSA as a Secretariat that the rules governing financial information in annual reports and interim reports in sections 183-193, and in regulations issued under section 196 is respected for financial companies which have issued securities which are admitted to trading on a regulated market referred to in article 6. law on securities trading, etc., section 83 (2) and (3) and to section 83 (b). in this connection, the powers exercised by the Danish securities Council under section 197.


(2). For branches of credit institutions authorised in another country within the European Union or in a country with which the community has entered into an agreement on the financial area, leading the Danish financial supervisory authority in accordance with the provisions laid down in the directives, supervision of the liquidity of the branches.

(3). If a money-or mortgage lender or a stock broker or investment management company is a subsidiary of a credit institution, investment firm or management company with its registered office in another country of the European Union or in a country with which the community has entered into an agreement on the financial area, the Danish financial supervisory authority by agreement, delegate their responsibility for the oversight of money-or mortgage credit Foundation, stockbroker or investment management company's or the Group's solvency and large exposures to the authority leading the consolidated supervision of the company's foreign parent company.

(4). The Danish financial supervisory authority must organise the usual supervisory activities in such a way that the supervisory efforts is proportionate to the risk of injury or the effects of infringements of the financial legislation. FSA Executive Board is responsible for oversight of the establishment of the organization.

(5). The Danish financial supervisory authority can in special cases apply foreign assistance.

(6). The Minister for economic and business affairs may lay down detailed rules for the FSA procedures in accordance with the provisions laid down in Community law.

§ 345. The Minister for economic and business affairs reduces The Financial Business Council, which consists of 8 members. The Council shall be composed as follows:





1) a Chairman with legal or financial insight.

2) A Vice-President with legal insight.

3) A member with economic financial acumen that set by Danmarks Nationalbank.

4) one consumer representative, as set by the Consumer Council.

5) a representative of the business community, which is set by the Danish Industry, the Danish Shipowners ' Association, HTS-Interest organization, Danish Trade Council and the agricultural, craft Service & in association.

6) a representative of the mortgage lenders, which are set by the mortgage Council.

7) a representative of the financial institutions, etc., which are set by the Council, The Danish Finance Brokerage Association, The Danish Stock broker Association and the Council of the Association Unit.

8) a representative of insurers, etc., as set by the Insurance Association of company pension funds, Pension &, insurance brokers ' trade association, insurance broker Association in Denmark and arbejdsmarkedets tillægspension Lønmodtagernes dyrtidsfond and Association.





(2). The Financial Business Council





1) take apart from section 43 and except for cases relating to compliance with §§ 183-193 and rules issued pursuant to § 196 of financial companies, which has issued transferable securities admitted to trading on a regulated market, decisions in supervisory cases of fundamental character as well as in regulatory matters, which have higher significant consequences for financial companies and financial holding companies,

2) advises the FSA in connection with its issue of rules and in relation to fundamental matters of fair business practice and good practices and price information as well as in supervisory cases of fair business practice and good practices and price information that has significant implications for higher education financial services companies and financial holding companies within the meaning of section 43, as well as

3) assisting the FSA with its information activities.





(3). The Minister for economic and Business Affairs appoints the members of the Council for up to 4 years at a time. Members can be re-designated.

(4). The Minister for economic and business affairs shall appoint an alternate for each Member. By a member on the Member's behalf. the alternate participant decline

(5). The Minister for economic and business affairs shall appoint two special experts for each member appointed pursuant to paragraph 1, nr. 4-6, and up to four special experts for each member appointed pursuant to paragraph 1, nr. 7 and 8. The Minister for economic and business affairs, in connection with the establishment of the Council's rules of procedure, see. (11) a list of the organizations which have the right to set special experts. The special examiner may, in accordance with the President's decision to participate in the meetings of the Council without the right to vote. However, there are at most attend two special experts for each Member in the treatment of individual cases at Council meetings.

(6). The Faroe Islands, and Greenland's Home Rule Government shall appoint each a special expert, as after the President's decision to participate in the meetings of the Council without the right to vote.

(7). Alternates and special experts appointed in accordance with paragraph 4 or 5 shall be appointed for a period equivalent to the period during which the Member of the Council, to which the person is appointed. Special expert appointed under paragraph 6 shall be appointed for up to 4 years at a time. Alternates and special experts may be re-designated.

(8). By the Council's treatment of cases of fair business practice and good practices and price information, see. (2). 2, convened the Consumer Ombudsman to take part in the relevant agenda item. The Consumer Ombudsman has in matters of fair business practice and good practices and price information the same powers as the Council members.

(9). § 354, paragraph 1 shall apply to the members and alternates of the Council as well as the special experts. 1. paragraph shall not, however, in dealing with matters relating to the issuance of regulations on fair business practice and good practice.

Paragraph 10. The Council shall act by a simple majority. Event of a tie, the casting vote.

Paragraph 11. The Minister for economic and Business Affairs sets out the Council's rules of procedure.

§ 345 a. for economic and Business Affairs approves rates for fees, deposits and continuous contribution to administration and reservefonds building, etc. for loans financed with mortgage bonds, covered mortgage bonds or special covered bonds, and qualifying for State aid, except for loans in the agricultural area.

section 346. The Danish financial supervisory authority must examine the financial companies and financial holding companies ' relationship, including through the review of ongoing alerts and inspections in each company. The FSA may also inspect sparevirksomheder.

(2). After the inspection carried out in a financial company or a financial holding company must be held a meeting with participation of the undertaking's administrative, managerial, the responsible actuary, the external auditor and the internal audit manager, unless the inspection only relate to defined areas of activity within the company. At the meeting the FSA must announce its conclusions relating to inspection.

(3). Essential conclusions must after an inspection shall be forwarded in the form of a written report to the company's Board of Directors, executive management, the responsible actuary, the external auditor and the internal audit manager.

(4). The supervisory authorities of another country within the European Union or in a country with which the community has entered into an agreement on financial matters, may, after prior notice to the Danish financial supervisory authority carried out inspections in the here in the country located branches of foreign financial companies with registered office in the country concerned. In the case of insurance companies, participating in the in the Danish financial supervisory authority 1. paragraph mentioned inspection or may, at the request of the supervisory authority in the home Member State of the branch on its behalf in special cases to be carried out inspections of the branch only. In the case of investment firms and management companies, the Danish financial supervisory authority at the request of the supervisory authority in the home Member State of the branch carry out the in 1. paragraph referred to inspection in the branch.

(5). The supervisory authorities of another country within the European Union or in a country with which the community has entered into an agreement on the financial area, with the FSA authorisation to carry out verification of the information given by the financial holding companies located here in the country, financial companies, financial institutions or undertakings offering ancillary financial undertaking subject to supplementary supervision of the relevant supervisory authority in accordance with the provisions laid down in directives in the financial field.

section 347. The financial companies and financial holding companies must give the Danish financial supervisory authority with the information necessary for supervisory activities. In accordance with the provisions laid down in the directives, this applies mutatis mutandis to foreign credit institutions, management companies and investment firms practising in this country through the establishment of a branch or the provision of financial services.

(2). The Danish financial supervisory authority may at any time against proper identification access without a court order for a financial company and its branches, or of a financial holding company with the aim of obtaining information, including through on-site inspections.

(3). In so far as it is necessary for the assessment of a financial company or a financial holding company's financial position, financial supervisory authority can obtain information at any time without a court order against proper identification to gain access to the companies with which the financial business or the financial holding company has in particular direct or indirect connection.


(4). The Danish financial supervisory authority may require all the information, including financial statements and accounting materials, printing of books, other commercial documents and electronically stored data, as deemed necessary for the FSA company or to the decision of whether a physical or legal person is subject to the provisions of this law.

(5). The Danish financial supervisory authority may obtain information under paragraph 1-4 for use within the scope of § 354, paragraph 5, no. 14 and 15, said authorities.

§ 348. The Consumer Ombudsman can bring an action for an injunction and injunction relating to acts contrary to fair business rules and best practices, see. section 43 (1) and (2). Marketing article 20, paragraph 1, shall apply mutatis mutandis to cases brought by the Consumer Ombudsman after this provision. The Consumer Ombudsman can be designated as the Group's representative in a class action lawsuit, see. Chapter 23 (a) of the code.

(2). The Danish financial supervisory authority may give orders for the rectification of circumstances that are in violation of §§ 43, 57 and 72. The Danish financial supervisory authority may inspect the branches of management companies and investment firms.

section 349. The FSA can order a financial business management to let prepare a statement for the company's financial position and prospects. Company's Board of Directors, executive management, the responsible actuary, the external auditor and the internal audit manager must know the signature on the injunction against the FSA confirm to be made aware of the contents of this letter.

(2). The statement must





1) be accompanied by a statement from the company's external auditor, unless the statement as a whole is prepared by this,

2) is submitted to the company's Board of Directors for approval and

3) are submitted in copy to the Danish FSA.





§ 350. The FSA can order a financial business within one of the supervision period to carry out the necessary measures, if





1) the company's financial position is so deteriorated that the depositor, the insured, holders of debt, investment associations, specialised associations, fåmandsforeningers, hedge approved associations, other collective investment schemes or other investors ' interests are at risk, or

2) there is a significant risk that the company's financial position is evolving in such a way that the Department will lose his permit.





(2). Is the required measures are not made within the prescribed period, the FSA may involve the company's permission.

(3). For insurance undertakings apply also sections 248-252.

(4). Paragraphs 1 and 2 shall apply mutatis mutandis to a group where the parent undertaking is a financial holding company or a financial undertaking where there is significant risk that the Group's financial position is evolving in such a way that the Group would not comply with the capital requirements for the group.

Section 351. The FSA can order a financial business within one of the supervision period to dedicate a Director of a financial undertaking which are covered by section 64 (2).

(2). The financial business has not allocated the Director within the prescribed period, the FSA may involve the company's permission, see. section 224 (1), nr. 2.

Section 352. The FSA can independently or in cooperation with other authorities carry out investigations, which are suitable for promoting transparency in the financial market, and publish the results of these.

section 353. The Danish financial supervisory authority in cooperation with the Consumer Agency shall deliver annually to the Minister for economic and business affairs, a report of the status of issuance of rules on best practices as well as rules on price information and on the experience gained with the application of the rules, see. § 43, paragraphs 2 and 3.

§ 354. FSA employees are under responsibility after Penal Code §§ 152-152 (e) obliged to keep secret all confidential information which they acquire their knowledge through supervisory activities. The same applies to persons performing service tasks as part of the operation, and FSA experts acting on behalf of the FSA. This shall also apply after the termination of employment or contract.

(2). Consent from the that secrecy is intended to protect, does not justify the FSA staff or experts acting on behalf of, the FSA has acted in or to disclose any confidential information.

(3). The provision in paragraph 1 shall not prevent the Danish financial supervisory authority on its own initiative disclose confidential information in summary or aggregate form, when neither the company or its customers can be identified.

(4). Confidential information may be divulged in civil or commercial proceedings, when a financial undertaking has been declared bankrupt, and provided that the information does not relate to customer relationships or third parties are or have been involved in attempts to rescue the company.

(5). The provision in paragraph 1 of this article shall not prevent confidential information be disclosed to:





1) the Danish securities Council and The Financial Business Council.

2) Other public authorities, including the Prosecutor's Office and the police, in connection with the investigation and prosecution of offences covered by the Penal Code or regulatory legislation.

3) Concerned Ministers as part of his overall supervision.

4) Administrative authorities and courts, which deal with decisions taken by the FSA.

5) stabiblity.

a Parliamentary Commission set up by 6) in the Folketing.

7) Investigative commissions established by law or pursuant to the law on investigative commissions.

the Danish Parliament's Standing Committee on 8) a financial business general economic conditions as part of the parliamentary control of the Administration, as far as financial firms into receivership or bankruptcy when the State guarantees or makes funds available for liquidation of the company.

9) State Auditors and national audit office.

10) the bankruptcy court and other authorities involved in the financial business liquidation, bankruptcy or similar procedures, as well as persons responsible for carrying out statutory audits of the accounts of a financial company accounts, provided that the recipients of information need it to perform their tasks.

11) Institutions managing the deposit protection schemes, investor schemes or insurance guarantee schemes, on the understanding that the information is necessary for the performance of their work.

12) Danmarks Nationalbank and foreign central banks, the European system of Central banks and the European Central bank, provided that the information is necessary for them in their capacity as monetary authority or in their monitoring of payment systems.

13) an institution responsible for the clearing of securities or money, if it is necessary to ensure that the institution react duly on defaults or potential defaults on the market, in which the institution is responsible for clearance.

14) financial regulators in other countries within the European Union or in countries with which the community has entered into an agreement on the financial area, responsible for the supervision of financial firms, financial institutions, investment or capital markets, institutions and bodies involved in financial companies ' liquidation, bankruptcy or similar procedures, as well as persons responsible for carrying out statutory audits of the accounts of the financial company accounts , on the condition that the recipients of information, the need for the effective exercise of their tasks.

15) financial regulators in countries outside the European Union, which the community has not concluded an agreement with in the financial sphere, which is responsible for the supervision of financial firms, financial institutions, investment or capital markets, institutions and bodies involved in financial companies ' liquidation, bankruptcy or similar procedures, as well as persons responsible for carrying out statutory audits of the accounts of the financial company accounts, see. However, paragraphs 9 and 10.

16) the State Customs and tax administrations in matters covered by the tax kontrolloven section 6 D (2).

17) Accountant supervision and Disciplinary Board for Chartered and Registered Accountants to the performance of their tasks.

The Faroese home rule party for 18) Financial Affairs as part of the responsibility for the economic stability of the Faroe Islands and to the need for crisis management of financial enterprises on the Faroe Islands.

19) the Greenlandic Minister for Industries, agriculture and the labour market in the context of responsibility for economic stability in Greenland and to the need for crisis management of financial enterprises in Greenland.

20) Faroe Islands Faroese Parliament [Lagting] Standing Committee on a Faroese financial business general economic conditions as part of the parliamentary control of the Administration, as far as the Faroe Islands Faroese financial firms into receivership or bankruptcy when the Faroe Islands, guarantees or makes funds available for liquidation of the company.


21) Greenland tings Standing Committee concerning Greenlandic financial business general economic conditions as part of the parliamentary supervision of the Greenlandic administration, with regard to Greenland financial firms into receivership or bankruptcy, when Greenland's Home Rule Government guarantees or makes funds available for liquidation of the company.





(6). All of which, in accordance with paragraphs 4 and 5 receiving confidential information from the Danish financial supervisory authority, with regard to this information, subject to the obligation of professional secrecy referred to in paragraph 1.

(7). Confidential information, as the FSA receives may be used only in connection with supervisory duties, to the imposition of sanctions, or if the DFSA's decision be appealed to the higher administrative authority or court referral.

(8). Access to disclosure of confidential information to the Danish Parliament's Standing Committee in accordance with paragraph 5, nr. 8, is limited to documents in cases that have been set up in the FSA after the 16. September 1995. For mortgage companies apply the constraint documents in cases that have been set up in the FSA after the 1. June 1995. Access to disclosure of confidential information to the Faroese Lagting Standing Committee in accordance with paragraph 5, nr. 20, and to Greenland tings Standing Committee in accordance with paragraph 5, nr. 21, is limited to documents in cases that have been set up in the FSA after the 1. January 2006.

(9). Disclosure pursuant to paragraph 5, nr. 15, can only happen





1) on the basis of an international cooperation agreement and

2), provided that the beneficiaries are at least subject to a statutory secrecy that corresponds to professional secrecy in accordance with paragraph 1, and need the information to perform their tasks.





Paragraph 10. Disclosure pursuant to paragraph 5, nr. 15, of confidential information derived from countries within the European Union or in countries with which the community has entered into an agreement in the financial field, can also only be done if the authorities which have submitted the information, have given their express permission, and must only be used for the purposes for which the authorization relates.

Paragraph 11. Have a debtor, guarantor or the investor significant obligations to several financial firms, the financial supervisory authority may give the undertakings concerned thereof.

§ 354 a. FSA may, in the cases referred to in paragraph 2 shall publish the name of the company, a decision relates, when it is deemed to be of interest to the financial enterprise customers to know the name of the company.

(2). Publication may be made in cases of





1) violation of the prohibition to exercise financial business without permission, see. sections 7-11, 308, 334 and 343 (a),

2) injunctive relief for the rectification of circumstances which are contrary to the rules on best practices and price information in section 43 and notices issued under section 43 of the basic regulation. § 348 (2)

3) violation of §§ 45 and 46 and section 49 (1) and (2)

4) violations of the regulations on pension and the placing of funds in the pooled securities issued under section 50 (2)

5) violation of §§ 51 and 52, section 53 (1), article 54, paragraph 2, and section 55, paragraph 1,

6) violations of notices of information at the conclusion of insurance contracts and under the ongoing customer relationship, issued under section 56,

7) orders for the rectification of circumstances, contrary to section 57 (1) of the basic regulation. § 348 (2)

8) violation of section 59 (1) and section 60, paragraph 1,

9) violation of § 72,

10) violation of the rules on the disclosure of confidential information in § and § 117 123, paragraph 3, and

11) violation of injunction to undertake necessary measures, in accordance with article 3. § 350.





(3). Publication of the in (2). 2 and 7, referred cases may also take place, although the company has changed its behaviour, if it is estimated that the company's customers continue to have an interest in knowing the case.

(4). Publication of the in (2). 2-11, referred cases may not happen if it will cause material injury to the company. The publication shall not contain confidential information about customer relationships.

(5). The Danish financial supervisory authority may publish the name of the company, a decision concerns, two weeks after that the company has been informed of this. The company decides to refer the matter to the EAB within the 2 weeks, can only happen if the Committee did not attach to the disclosure complaint, the suspensive effect.

§ 355. As a party in relation to the Danish financial supervisory authority shall be deemed to be the financial business, the financial holding company, the foreign financial company or the foreign financial holding company, as the FSA decision taken pursuant to this Act or the regulations laid down pursuant to this Act is aimed at, see. However, paragraphs 2 and 3.

(2). In the following cases shall be considered as someone other than the company, as well as a party to the FSA decision, as regards the part of the case, which concerns the question:





1) where that parent undertaking, where it is a financial holding company or a financial company.

2) companies, with which a financial company has a direct or indirect connection, and in particular where supervision may obtain information and inspect, without prejudice. section 347, paragraph 3.

3) A natural or legal person to whom the DFSA requires information for determining whether this is covered by the provisions of this law, without prejudice. section 347, paragraph 4.

4) A person who receives information about the DFSA in relation to approval under section 64 (1) and (2).

5) the transferee or the possessor of a qualifying shareholding when the Danish financial supervisory authority refuses to approve this, it shall suspend proceedings or react as a result of lack of notification of the share or repeals the voting rights attaching to the relevant owners ' share of the basic regulation. § 61, paragraphs 1-7, and section 62, paragraph 1-3.

6) Auditor in a financial business, when the FSA dedicates this or make this to give information about the company's relationship, as well as in cases relating to the prohibition of an auditor have loans, etc. in the financial business, as an auditor shall audit, see. § 199, paragraphs 4-6 and 8.

7) businesses to which a financial institution, stockbroking firm, investment management company or mortgage institution has such a mapping to this after the FSA decision must be included in the consolidation of the basic regulation. section 177 (1).

8) a company applying for permission to operate a financial institution-, stockbroking, investment management, securities, mortgages, insurance or life insurance company, see. section 7, paragraph 1, article 8, paragraph 1, section 9, paragraph 1, section 10, paragraphs 1 and 2, article 11, paragraph 1, and section 14, or if the application be suspended, without prejudice. § 14 (4).

9) A member of a corporate Board of directors or Executive Board or a financial capital, when owner supervision refuses a financial business permit or withdraw this in whole or in part, see. section 14 (1) (8). 1-3, and paragraph 2, § 224 and section 225 (1).

10) undertakings to which supervision shall have close links to a financial company when permission is denied or suspended under section 14 (1) (8). 4 and 5, and section 224.

11) anyone who violates the law's ban on in a company name or name of the company to use words that are the subject of financial companies the exclusive right to the name, see. section 7, paragraph 5, article 8, paragraph 5, section 9, paragraph 5, 2. paragraph and paragraph 6, 2. section, and section 11, paragraph 3.

12) that violate the Act's prohibition against doing business within the scope of article 7, paragraphs 1, 3 and 4, section 8, paragraphs 1 and 3, § 9, paragraphs 1 and 3, article 10, paragraphs 1 and 3, and article 11, paragraph 1, without permission.

13), to whom The Danish financial supervisory authority shall decide whether the person concerned can offer investment services without permission, see. § 9, paragraph 11.

14) investment funds, specialist associations, fåmandsforeninger and other collective investment schemes, when the Danish financial supervisory authority shall take a decision in a case involving the investment management company, which manages investment Association, special Association, fåmandsforeningen or the collective investment scheme.

15) the responsible actuary, when this has not fulfilled his obligation to the Danish financial supervisory authority, the information referred to in article 6. section 108, paragraph 5, 1. PT.





(3). As a party shall be deemed to be a member of the Board, a person in charge of the actuary, an accountant, a Director or other senior executives in a financial company, a financial holding company, a foreign financial company or a foreign financial holding company, if the FSA decision is aimed directly at the question. The same is true of a liquidator and a trustee of a life insurance stock.


(4). Finally, the Danish financial supervisory authority, when supervision takes a case concerning fair business practice and good practice within the business area, see. section 43 (1) and (2) price information, see. section 43, paragraph 3, good securities trading, see. § 3 of the law on securities trading, insurance companies ' duty to offer consumer insurance at short notice, without prejudice. section 57, or disclosure of confidential information, see. Chapter 9, under special circumstances also make known party powers to other natural or legal persons other than those referred to in paragraphs 2 and 3. Powers can only be attributed to the parties, as regards the part of the case, which has a direct and significant impact on the person concerned. Granting of powers of the Parties shall take into account the protection of confidential information about the companies that are under supervision.

(5). -Party status and powers of the parties in accordance with paragraphs 2 to 4 are restricted to situations where supervisory decisions are taken after the 8. October 1998, for mortgage companies, however, after the 20. October 1998. As regards the disclosure of confidential information, see. Chapter 9, is-party status and party powers is limited to situations where supervisory decisions are made after the 1. January 2004. For investment management companies is party status and party powers is limited to situations where supervisory decisions are made after the 1. January 2004.

section 356. The employees of the FSA must not be a member of the Executive Board, Board of directors or Board or be employed in enterprises under the supervision of the financial supervisory authority or in their organizations. They also may not, without the permission of the Minister for economic and business affairs to own or operate as self-employed persons, or participate in the management or operation of a business. They can, however, own, operate and participate in the management of real estate.

(2). Employees of the FSA must not, at its own expense, carry out or engage in speculative transactions, see. section 77 (1). The Minister for economic and business affairs for the Danish FSA Director, Deputy Directors and persons treated as such to draw up guidelines on the reporting of property dispositions.

(3). The Director of the Danish FSA shall not without the permission of the Minister enter into economic and business engagement with, or provide a guarantee against financial companies. For other employees in the Danish financial supervisory authority shall draw up detailed guidelines for economic and business affairs for the approval of exposures to and guarantees against financial companies. The guidelines may require different authentication procedures for individual employee categories.

Deadlines

§ 357. The time limits laid down in or under this Act, begins to run as of the day following the date on which the event which triggers the deadline, takes place. This applies in the calculation of both day-as week, month, and årsfrister.

(2). Is the deadline specified in weeks expires, without prejudice. (1) on the day of the week for the date on which the event which triggered the deadline, took place.

(3). The time limit is specified in months shall expire, in accordance with article 3. (1) on the day of the month of the day on which the event which triggered the deadline, took place. If on the day of the event which triggered the deadline, took place, is the last day of a month, or if the period expires on a monthly date, which does not exist, the period shall expire on the last day of the month always regardless of its length.

(4). Is the deadline set in years shall expire, in accordance with article 3. (1) on the anniversary of the day on which the event which triggered the deadline, took place.

(5). A time limit expires in a weekend or on a public holiday, Constitution Day, Christmas Eve or new year's Eve, the deadline should be extended until the first following working day.

Special rules for insurers on supervision

§ 358. Decision that the new shares must be deposited by conversion of debt pursuant to the Danish public companies Act section 33 (a), must be approved by the FSA.

§ 359. Insurance companies, branches of foreign companies, which have been authorised by the FSA, and those of this law included pension funds registered in the Danish Commerce and companies Agency.

Chapter 22

Charges

section 360. FSA appropriation deducted from sale of goods and services as well as the interest income will be covered by levies from the companies, which are subject to supervision, within the meaning of the Danish FSA. § § 361-370.

(2). FSA appropriation as determined according to paragraph 1 is covered also by charges from the nonprofits, which under section 16, paragraph 4, of the law on prevention of the laundering of proceeds and financing of terrorism has requested registration with FSA Regulation. § 361 (1). 21.

§ 361. The following companies are paying annually a basic amount in tax to the Danish financial supervisory authority:





1) labour market occupational disease insurance pays 510,000 DKK.

2) ATP-Fund (additional pension, temporary retirement savings and special pension savings account) pays 1,180,000 kr.

3) operators of regulated markets and alternative marketplaces pays a basic amount of EUR 12,000 DKK per company, whose securities are admitted to trading at the end of the previous year.

4) FUTOP Clearing Center a/s pays $ 250,000.

5) guarantee fund for depositors and investors are paying us $ 95,000.

6) Each financial holding company pays us $ 5,000.

7) Every issuer of collateralized mortgage bond and similar companies pay 10,000 DKK per series.

8) Every issuer of electronic money are paying 10,000 kr.

9) employees ' capital Pension Fund pays 670,000 USD.

10) central securities depository a/s pays 1,840,000 kr.

11) guarantee fund for non-life insurance companies pay $ 50,000.

12) financial companies and financial holding companies, which has issued transferable securities admitted to trading on a regulated market, and if the market value of the traded securities is at 1 billion. us $ or more year-end pay 40,000 USD annually. Corresponding financial companies and financial holding companies with a market value of the traded securities at 250 million. USD or more, but less than 1 billion. at year-end, paying us $ 20,000 USD annually, and financial companies and financial holding companies with a market value of the traded securities of less than 250 million. DKK 10,000 DKK pays annually at year-end. Departments of investment associations and special associations, which has issued transferable securities admitted to trading on a regulated market shall pay 5,000 DKK per year.

13) Reinsurance broker companies pay 15,000 kr.

14) natural or legal persons with which the FSA approval by requesting a prospectus pursuant to Chapter 6 of the law on securities trading, etc., pay 25,000 kr in fee per request.

15) any natural or legal person requesting the recording in a register for qualified investors, without prejudice. law on securities trading, etc., section 23, paragraph 8, pays 1,000 DKK per request.

16) companies and persons covered by article 1, paragraph 1, no. 12 of the law on prevention of the laundering of proceeds and the financing of terrorism are paying $ 400.

17) Issuers, which is obliged to send information to the Danish financial supervisory authority according to § 27 a, paragraphs 2 and 3, of the law on securities trading, etc., pay 8,250 DKK annually.

18) Issuers, requesting the FSA official listing of shares, stock certificates or bonds, pay 15,000 DKK charge per request. Those issuers pay then $ 400 annually, as long as the security is officially noted.

19) Each operator of a regulated market that has permission to operate multilateral trading facilities, pay 15,000 DKK annually.

20) investment advisers pay 10,000 DKK annually.

21) Professional associations pay 10,000 DKK per Association and 3,000 € per unit.

22) Organizations with a non-profit, which calls for the inclusion in a directory of nonprofit organizations that can receive money transfers of up to 150 euros without disclosure requirements in connection with money transfers, see. law on prevention of the laundering of proceeds and the financing of terrorism, section 16, paragraph 4, paying 900 DKK per request.





(2). The basic amount referred to in article 6. (1) adjusted annually equal to the evolution of the Danish FSA appropriation on the Finance Bill.

§ 362. Stockbroking companies pay annual 10.5 per mille of their costs for salary, Commission and performance related bonus. Always a minimum tax be imposed on 15,000 kr.

(2). Investment management companies pay annual 10.5 per mille of their costs for salary, Commission and performance related bonus. Always a minimum tax be imposed on 15,000 kr.

(3). Insurance broker companies pay annual 4.0 per mille of their commissions and other remuneration. Always a minimum tax be imposed on $ 400.

(4). Branches of foreign credit institutions pay annual 0.0006 per mille of their total balance plus guarantees. Always a minimum tax be imposed on $ 400.

(5). Hedge funds are paying yearly 25,000 KR. per organization or per Department plus 0.02 per mille of their total balance.

§ 363. Financial institutions, companies governed by the law on financial institutions, a ship other than those referred to in § 361 sparevirksomheder (1). 7, mentioned and the Management Institute for Local banking institutions pay annual 49.4% of the shortfall between expenditure and tax paid after FSA sections 361 and 362.


(2). The levy shall be allocated in proportion to each company's share of the paragraph 1 included the companies ' total debt and guarantee obligations. Always a minimum tax be imposed on $ 400.

§ 364. Mortgage companies pay annual 13.2% of the shortfall between expenditure and tax paid after FSA sections 361 and 362.

(2). The levy shall be allocated in proportion to each company's share of the paragraph 1 included the companies ' total posted balance sheet total. Always a minimum tax be imposed on $ 400.

§ 365. Insurance companies engaged in life assurance, lateral pension funds and corporate pension funds pay annual 18.3 percent of the difference between expenditure and tax paid after FSA sections 361 and 362.

(2). The levy shall be divided into two equal parts. The one part of the charge shall be allocated in proportion to each company's share of the paragraph 1 included the companies ' total gross premiums and member contributions. The second part of the fee shall be distributed in proportion to each company's share of the paragraph 1 included the companies ' overall balance sheet reduced by capital base. Always a minimum tax be imposed on $ 400.

section 366. Insurance companies not engaged in life assurance, pay annually 14.7% of the shortfall between expenditure and tax paid after FSA sections 361 and 362.

(2). The levy shall be allocated in proportion to each company's share of the paragraph 1 included the companies ' total direct and indirect gross premiums earned plus gross compensation, since apart from the negative premium income. Always a minimum tax be imposed on $ 400. The insurance companies, which are covered by section 294, however, pay a minimum fee of $ 800.

§ 367. Mutual funds, special associations and fåmandsforeninger pays annually 4.4 per cent of the difference between expenditure and tax paid after FSA sections 361 and 362.

(2). The levy is distributed between companies with 10,000 DKK PR. Association plus 3,000 € per unit. The remaining charge is allocated in proportion to each company's share of the paragraph 1 included the companies ' overall balance.

Section 368. Calculation of charges from enterprises covered by § § 362-367 is made on the basis of the information in the annual report for the last financial year, cast-off or, in the absence of such the most recently submitted the financial reporting. In the case of insurance broker companies, calculation takes place on the basis of the most recently submitted income specification.

(2). Full taxation is the responsibility of any company that has been under the supervision of a part of the calendar year in question.

(3). If two or more companies under FSA supervision be merged, pay the continuing operations the discontinued business tax.

(4). If a company ceases to be under supervision by means other than merging, fixed fee for the calendar year in which the enterprise ceases, as follows:





1) companies within the scope of § 361 pays the basic amount.

2) establishments covered by § 362 pays the prescribed per thousand compared to the taxable amount in the previous year's annual report or revenue specification. If not the previous year's financial statements or income specification is submitted to the FSA at the time of termination is calculated tax in relation to the tax base in the latest financial reporting or income specification.

3) establishments covered by § § 363-367 pay percentage from the last taxation in relation to the tax base over the last year's annual report. If not the last year's annual report is submitted to the FSA at the time of termination is calculated tax in relation to the tax base in the latest financial reporting. The Danish financial supervisory authority may in exceptional cases authorise the tax payment pending the total tax calculation.





(5). The Danish financial supervisory authority may, in exceptional cases, lower the tax.

§ 369. Dues for the year in question will be charged beginning december with payment deadline at the year-end.

(2). Taxes may be recovered by Lien in order and by deduction of wages, etc. in accordance with the rules for the collection of personal taxes in kildeskatteloven.

(3). Arrears collection authority may cancel the requirements referred to in paragraph 1 in accordance with the rules in Recovery Act.

§ 370. Profits and losses are adjusted over a savings account.

(2). A possible difference between the levy and the paid-up tax passed as a total amount for charging the following fiscal year.

Title XII

Date of entry into force and transitional provisions

Chapter 23

Head of delegation-and appeal provisions

§ 371. Assign the Minister for economic and business affairs of its powers under the law to the Danish financial supervisory authority, the Minister may lay down rules on the appeals procedure, including the complaints cannot be brought before another administrative authority.

section 372. Decisions by the FSA or the Danish Commerce and companies Agency pursuant to law or regulations issued by virtue of law can by it, as the decision addressed to, be referred to the EAB within 4 weeks after that decision is announced.

(2). Decisions by the FSA in connection with matters covered by section 246, requested an appeal must be brought before the EAB within 24 hours after that decision is announced.

(3). Reversed a decision by the FSA, which is that an insurance company shall enter into liquidation, or that its life insurance stock is taken under administration, the Danish Commerce and companies agency register this immediately. The Danish financial supervisory authority shall, if the company owns the immovable properties, ensure proper registration.

Chapter 24

Criminal provisions

§ 373. Violation of the provisions of section 7, paragraphs 1 to 6, article 8, paragraphs 1 and 3-6, § 9, paragraph 1-3 and 5-7, section 10, paragraphs 1 to 4, article 11, paragraphs 1-4, section 16 (a), paragraph 2, section 16 (b), paragraph 2, article 24, paragraph 1, 2. section, § 25, 2. paragraphs, sections 27 and 28, section 31, paragraph 7-9, § 33 (1) sections 36 and 38, § 39, paragraph 1, 3, 4 and 6, §§ 40 and 44-46, section 49 (1) and (2), sections 52 and 53, section 61 (1) and 6-8, section 63, paragraph 1, 2 and 4, article 64, paragraph 3, of the basic regulation. (2). 1 and 2, §§ 65-67, § 74, paragraphs 1 and 3, § § 75, 76 and 78, article 92, paragraph 1, section 97 (1) and (2), § 101, paragraphs 1, 2 and 4, § 102, paragraphs 2 and 3, § § 103-106 and 117, article 118, paragraph 3, § 119, § 120, (1), (2). point, and (2) of section 124, paragraphs 1 to 4, 7 and 8, article 125, paragraph 1-3, 5 and 7, § 126, paragraphs 1, 2 and 8, § 134, no. 7, section 138, nr. 8, § 145, (3) and (4) 1. paragraph, section 146 (1) of section 147, paragraph 1, article 149, paragraph 1-3, §§ 150-152, article 153, paragraph 1, § § 154 and 170-175, § 182 (1) and (2), § 194, § 195, paragraphs 1-3, §§ 200-203, § 204 (1) of section 217, § 218, paragraph 1 1. and 2. paragraph, article 226, paragraph 1, 2 and 5, § 227, Section 308, paragraphs 1, 2 and 7, §§ 309 and 310, § 317, paragraph 1 and paragraph 3, 1. paragraph, article 320, paragraph 1, § 321, Section 322 (2), sections 329 and 331, § 334 (1) and (2), § 343 (a), paragraph 1, section 343 (f), paragraph 3, section 343 (j), §§ 377, 379 and 381 and section 404, paragraphs 1, 2, 4 and 5 are punishable by fine or imprisonment up to 4 months, unless a higher penalty is inflicted upon the rest of the legislation.

(2). Violation of the provisions of section 16 (c), section 16 d, paragraph 1, section 16 (f), paragraphs 1-3, section 50 (1), article 54, paragraph 2, § 56, paragraphs 1 and 2, section 57 (a), paragraph 1, § 70, § 71 (1), section 72 (1) and (2) and (3), 3. paragraph, section 73, paragraph 1 1. paragraph and paragraph 2, § 77, section 80, paragraph 1, paragraph 2, 1. paragraph and paragraphs 3, 7 and 8, section 108, paragraph 1-6, section 121 (1), sections 122 and 123, section 152 (a), paragraph 1 1. paragraph, section 152 c, paragraph 2, section e, paragraph 152.1, § 152 g, paragraph 1 1. and (3). point, and (2) and (4), sections 158, 159 and 167, section 183, paragraph 1 1. paragraph, article 183, paragraph 5, article 184, paragraph 1, article 185 (1) and (2) and (3) 1. paragraphs, sections 186 and 187, § 188 (1) (2) 1. paragraph, and (3), 2. PT., §§ 189-191, 192, § 1. paragraph, section 193, 1. paragraph, section 198, paragraph 199, paragraph 1 1. and 2. PT., and § 199 paragraphs 2 and 5, as well as article 4 of the Council regulation on the application of international accounting standards is punishable by a fine. In the same way punishable infringement of the obligation of notification under section 152 (a) (2) 1. PT.

(3). With fine punished a financial company or a financial holding company which fails to comply with an injunction granted under section 348 (2) 1. paragraph, section 350 (1) or section 351, paragraph 1, as well as violations of the Danish public companies act § 52 (1).

(4). In rules adopted pursuant to the law may be fixed penalty of fines for violation of the provisions in the rules.

(5). That can be imposed on companies, etc. (legal persons) criminal liability in accordance with the provisions of the criminal code 5. Chapter.

(6). Failure by a member of a financial company or a financial holding company's administrative or management body to take the necessary measures in the event of loss or nearby danger of loss of significant size, he or she will be punished with a fine or imprisonment up to 4 months, as higher punishment not inflicted after the rest of the legislation. Similarly, a member of the Board of directors or the Executive Board in a sparevirksomhed or of an issuer of electronic money.


(7). Persons associated with a financial undertaking, and who provides false or misleading information on matters relating to the company to the public authorities, to the public, to any corporate body or to depositors, policy-holders or holders of debt or other investors in the financial business, or who is guilty of gross or repeated negligence or carelessness, more often which can result in a loss for the company or depositors they insured or bondholders or other investors in the financial business, punishable by fine or imprisonment up to 4 months, as higher punishment not inflicted after the rest of the legislation. Similarly, persons linked to a sparevirksomhed or an issuer of electronic money.

(8). The limitation period for violation of the provisions of the Act or regulations issued pursuant to law is 5 years.

section 374. Fail a financial business administration, management, external auditor, internal audit manager, responsible actuary, liquidator, general agent, Branch Manager or representative in a timely manner to comply with the obligations under the law or regulations issued pursuant to the law shall be the responsibility of those above for the FSA or the Danish Commerce and companies Agency, FSA, respectively the Danish Commerce and companies agency as a compulsory instrument to impose on those daily or weekly payments.

(2). Failure by an undertaking as referred to in section 347, paragraphs 3 and 4, to meet the obligations according to the law is the responsibility of the company, the Danish financial supervisory authority as a compulsory instrument to impose on the company as such or the company responsible persons for daily or weekly payments.

(3). Periodic penalty payments may be recovered by Lien in order and by deduction of wages, etc. in accordance with the rules for the collection of personal taxes in kildeskatteloven.

(4). Arrears collection authority may provide periodic penalty payments referred to in paragraphs 1 and 2 in accordance with the rules in Recovery Act.

(5). If a financial company or a financial holding company which has issued transferable securities admitted to trading on a regulated market, does not meet its obligations in accordance with the provisions of §§ 183-193 or provisions laid down pursuant to § 196, can Fund the Council give the undertaking concerned cold cuts on the modification of the relationship, including cold cuts on the publication of the amended or additional information. It is considered appropriate, the Danish securities Council even publish that information, publish the notice, or suspend or delete the affected securities from trading on a regulated market.

(6). The financial company or financial holding company that does not comply with a request from the Danish securities Council or shall give false or misleading information to the Danish securities Council, be punished by a fine, as higher punishment not inflicted upon other law.

(7). The provisions of paragraphs 1 to 3 shall apply mutatis mutandis to the Danish securities Council by the Fund Council's control pursuant to section 344 (1), (3). PT.

Chapter 25

Entry into force, transitional provisions, changes in other legislation, the Faroe Islands and Greenland

Date of entry into force of

§ 375. The law shall enter into force on the 1. January 2004, see. However, paragraphs 2 and 3.

(2). § 167, article 169, paragraph 1, no. 4, § 271, § 278, paragraph 4, article 373 (2), section 380 and section 425, nr. 31, shall enter into force on the day after publication in the Official Gazette. Section 57 shall enter into force on the 1. July 2004.

(3). The Minister for economic and Business Affairs establishes the time of the entry into force of § § 183-198.

(4). Notwithstanding section 199 (1) and § 376 remains the requirement that certain financial firms must have at least two auditors, see section 34, paragraph 1, of the law on banks and savings banks, etc., section 23, paragraph 2, of the law on the stockbroking companies, section 179, paragraph 1, of the law on insurance business as well as section 90 (1), in realkreditloven, in force for the fiscal year that begins on 1 January. January 2004.

(5). Section 430, nr. 6, has the effect of transformations that take place the 1. January 2004 or later.

§ 376. The following laws and regulations are hereby repealed:





1) financial business Act, see. lovbekendtgørelse nr. 660 of 7. August 2002.

2 the law on banks and savings banks, etc.), see. lovbekendtgørelse nr. 214 of 25. March 2003, see. However, § § 377 and 378.

3) law on stockbroking companies, see. lovbekendtgørelse nr. 787 of 19. September 2002.

4) law on insurance business, see. lovbekendtgørelse nr. 147 of 7. March 2003, see. However, sections 379 and 380.

5) section 1, paragraphs 1-3, sections 2, 4-20, 46, 50, 51, 53-54, 60-95 and 98 in (a), article 100, paragraph 1-3, § § § 100 a and 101 and 102, paragraph 1, in realkreditloven of the basic regulation. lovbekendtgørelse nr. 57 of 20. January 2003, see. However, § § 381 and 382.

6) law on issuers of electronic money, see. lovbekendtgørelse nr. 661 of 7. August 2002.

7) law on sparevirksomheder, see. lovbekendtgørelse nr. 655 of 7. August 2002.

8) section 6 of the law No. 1090 by 17. December 2002 on the promotion of private rental housing.





(2). Notices are issued pursuant to the laws referred to in paragraph 1, shall be maintained until they are repealed or replaced by regulations issued pursuant to this Act.

Transitional provisions

§ 377. (Omitted)

Section 378. (Omitted)

section 379. (Omitted)

section 380. (Omitted)

§ 381. (Omitted)

section 382. (Omitted)

§ 383. (Omitted)

section 384. Until 1 January 2008. January 2006 section 123 shall only apply to customer relationships established after the 1. January 2002, or if the customer conclude new agreements with the financial business.

section 385. For customer relations established before the 1. January 2002 can usual information about customer relations until the 1. January 2006 divulged to group related financial firms unless the customer conclude new agreements with the financial company or customer makes objected. The customer shall in connection with the broadcast of the annual notices under section 123 will be informed of the right to object after 1. PT.

§ 386. section 7, paragraphs 5 and 6 shall not apply to the financial institution for Industry and craft.

(2). The financial institution for Industrial and craft shall, not later than 1 January 2006. July 2004 meet the liquidity requirement of § 152.

§ 387. Notwithstanding the provision in section 13, paragraph 1, banks, whose share capital at the date of entry into force of the Act was divided into classes of shares with different voting rights, preserve the clauses that apply to that effect.

section 388. Banks and savings banks, which have legally commenced business before the 28. May 1980, can continue business without permission. Abandonment of bans against continued activities are equated with the inclusion of a licence pursuant to section 225.

§ 389. Companies, who before the 1. May 1985 was subject to section 13, paragraph 2, of law No. 156 of 2. in may 1934, and which has run business before 1. January 1983, can continue business without permission, provided that they were reported to the FSA in the 1. October 1985 as





1) cooperative banks, see. § § 9-13, or

2) savings and loan companies, see. sections 17 and 18.





(2). Notwithstanding section 341 (2) establishments until the repeal of law No. 156 of 2. may 1934 with later changes were covered by this law, have at least one chartered or certified accountant.

section 390. A cooperative if the cooperative capital is lower than 25 mio. DKK, can not reduce the andelskapitalen without the permission of the supervision.

section 391. The placing of funds in assets that are not covered by sections 50 and 51 shall not mean that the assets shall be disposed of, if the assets were in the book the 31. December 1992.

Section 392. Notwithstanding section 26 can financial institutions that the 1. June 2000 drive other business activities together with financial institutions, insurance companies, stock brokerage companies or mortgage companies included in the consolidated with the Bank, to continue this operation, if the institution before 30 June. June 2000, informed the Danish financial supervisory authority on the subject.

§ 393. section 234, paragraph 2, specifying that subordinated capital is not included in the assessment of whether a financial institution, a mortgage lender, a stockbroking firm or an investment management company is insolvent, applies only to subordinated capital, issued after the 1. July 2001.

§ 394. § 48, paragraphs 4 to 6 shall apply to surety agreements that are entered into the 1. July 2002 or later.

(2). § 48, paragraphs 4 to 7, shall not apply in the case of surety agreements concluded before 1 January 2002. July 2002. § 48, paragraphs 1 to 3 shall only apply, if those services are due after the date of entry into force of the Act.

section 395. Guidelines, as agreed under the Danish marketing law § 17 before this law enters into force, shall continue to apply for financial firms, until they are repealed or replaced by rules issued by the Minister for economic and business affairs under section 43 (2) of this Act.

§ 396. Clauses, which are confirmed or put into effect before 18. December 1980, and which differ from the rules in section 111, or the rules of the Danish public companies Act § 59, paragraphs 1 to 3, shall retain their validity.

§ 397. Mutual property and casualty insurance companies covered by article 294, paragraph 1, but as the 1. October 1981 was subject to surveillance under section 120 (1) and (3) of the law on insurance, see. lovbekendtgørelse nr. 544 of 27. October 1975, can only be exempted from supervision in accordance with the rules laid down in section 301, paragraph 3.


section 398. Clauses on the transferability of shares, which were in force before 1 May 2004. October 1981, retain their validity.

§ 399. The Danish public companies Act section 67, paragraph 1, in which case any share shall give the right to vote, shall not apply to shares issued before 1 May 2004. October 1981, and for which at this point is not associated with the right to vote.

(2). The Danish public companies Act section 67, paragraph 1, shall not apply to shares issued before 1 May 2004. October 1981, and whose voice value exceeds 10 times the voice of the value of any other stock or something else share amount of the same size.

§ 400. Insurance companies that the 1. October 1981 did not have a fully paid up share capital, may maintain that system.

(2). In the paragraph 1 included insurance companies must be a shareholder or a guarantor is not liable for payment in shares or shares to guarantee a greater total than 5 per cent of stock or guarantee capital or for larger amounts than 50,000 kr. unless the lodging of a security for the amount approved by the FSA in addition.

(3). The Danish financial supervisory authority may grant exemption from the rule in paragraph 2.

(4). The transfer of a not fully paid up shares or guarantee share of insurance undertakings covered by paragraph 1 may take place only with the Board's approval. Such approval shall not be communicated unless it must be assumed that the transferee will be able to pay future deposits, or unless the reassuring security. Made reassuring security, authentication can not be refused unless the requested transfer is contrary to other valid established rules on the limitation of shares or guarantee the transferability.

(5). When the Board of Directors has approved the transfer and the transferee has issued the obligation for the unpaid amount, lapse the transferor's obligations.

(6). Make a shareholder or guarantor in insurance companies covered by the paragraph 1 shall not apply in good time a shareholder or the guarantor of deposit, the shareholder or the guarantor, provided that the articles of association do not decide otherwise, the person liable from the due date to pay an annual interest rate of the amount equal to the interest rate provided for under section 5 (1) and (2) of the law on interest for late payment, etc.

(7). The company shall, if payment under paragraph 7 is not done in a timely manner, without undue delay, seek satisfaction for the amount owed by either an action or by the shareholder's or guarantor for the Bill, and as far as possible after 4 weeks notice to the shareholder or the guarantor, to guarantee the proportion disposed of the share or the search with the obligation of the acquirer to provide the missing payments with accrued interest. The disposal must be done through a brokerage firm, a credit institution which has a special permit, or a financial institution or by public auction. The divestment involves the issuance of new stock letter or interim certificate, must share the letter or interim certificate as well as to specify its purposes to reproduce the contents of the old stock letter or interim certificate and signed by the Board of Directors. However, provisional certificates signed by an agent of the Board.

(8). It turns out that the debt cannot be recovered at any of the listed ways to share or guarantee the share capital shall be deemed to be cancelled and then reduced by one to share or guarantee's nominal equivalent amount. The amount that has been paid, will be entrusted to a fund that is not without the consent of the Danish FSA may be reduced.

(9). Capital reduction shall be reported to the Danish Commerce and companies Agency. In addition to the FSA submitted evidence that the conditions for share or guarantee's annulment has been present.

§ 401. Exposures and collaterals that the 1. January 1998 legally was concluded between the selected revision or an internal audit or Deputy Chief Auditors or staff of the arbejdsmarkedets tillægspension or employees ' capital Pension Fund and insurance company, Bank or mortgage lender, the securities, the stockbroking company or arbejdsmarkedets tillægspension, where the person is employed, can proceed to the originally agreed maturity.

(2). Internal audit and the Deputy Auditors, managers can regardless of the prohibition in section 77, paragraph 10, maintain and exploit the economic interests which he/she owns by the date of entry into force of the Act.

Section 402. section 97 shall apply mutatis mutandis to advances and deposits received from customers before the Act's entry into force.

(2). Rules on annulment of the Bankruptcy Act shall apply mutatis mutandis to advances and deposits pursuant to paragraph 1 shall be transferred to a special account in a financial institution.

section 403. Banks and mortgage companies, such as at the date of entry into force of the law carrying out activities or usually expect to perform activities that require a permit under section 9, paragraph 1, of the basic regulation. section 7, paragraph 2, and article 8, paragraph 2, will be able to continue these activities, if they are in the 1. July 2004, reviewed the activities of the Danish financial supervisory authority. FSA announces pursuant to section 9, paragraph 1, authorization for the declared activities.

(2). The Department may, in the period after the notification and forward to the Danish financial supervisory authority has granted permission, pursuant to § 9 (1), continue to carry out the declared activities.

(3). Financial institutions subject to section 124, paragraph 2, shall be authorised in accordance with paragraph 1 must only meet the capital requirements that were in effect for the Bank at the time of the entry into force of the Act.

Section 404. Management companies which, at the time of the entry into force of the Act has been approved as a management company for one or more mutual funds and specialty associations, shall, not later than 6 months after the entry into force of the law, have filed an application for a license to manage investment funds and specialist associations to the Danish FSA. The management company may then continue its business in this country without permission until the Danish financial supervisory authority has taken a decision on the application.

(2). Referred to in paragraph 1, the management company, which at the time of the entry into force of the Act do not meet it in section 10, paragraph 5, the said requirements for share capital, shall, not later than the 13th. February 2007 meet capital requirements under section 127.

(3). They referred to in paragraphs 1 and 2 the management company must have a capital base, which always represents an amount equal to what the management company had at the time the Act came into force, however, at least 500,000 DKK or the amount of money that the management company should have had at the fulfillment of section 127, if this amount is less than the management company's equity at the time of the entry into force of the Act. Base capital for these management companies falls to below it in 1. paragraph mentioned amount, FSA can set a time limit to bring basic capital up to the mentioned minimum amount or immediately withdraw authorization.

(4). Taken over control of an investment management company, which is covered by paragraph 3, by a natural or legal person, an investment management company's basic capital no later than 3 months after the date of acquisition meet capital requirement under section 127.

(5). In the case of a merger between the investment referred to in paragraph 3, collecting societies, the new investment management company at all times meet the capital requirement corresponding to the sum of the merging UCITS management companies ' equity. The new investment management company shall, not later than the 13th. February 2007 meet the capital requirement pursuant to § 127.

(6). Management companies, who alone manages special associations by the entry into force of the Act, may continue to do so. The provisions of the Act relating to investment management companies, with the exception of article 10, paragraph 2, apply mutatis mutandis on the in 1. paragraph referred to management companies. Would a management company to manage mutual funds, the company must be transformed into an investment management company.

Section 404 (a). (Omitted)

§ 405. Companies that know the law's entry into force is allowed to conduct business as issuer of prepaid debit cards, and complying with the provisions of this law, can drive the business of electronic money institutions.

section 406. It in § 339 said capital requirements do not apply to sparevirksomheder authorised before 1 May 2004. January 2004, and whose equity at this point does not meet the capital requirement in § 339.

(2). If the sparevirksomheders own funds referred to in paragraph 1 falls below the amount reached the 1. January 2004, the FSA can either fix a period within which to bring up at this minimum equity or immediately withdraw authorization.

(3). Taken over the control of a sparevirksomhed, which is covered by paragraph 1, by a natural or legal person, sparevirksomhedens equity no later than 3 months after the date of acquisition, satisfy the capital requirement pursuant to section 339.

section 407. Capital issued pursuant to the banking and Savings Bank Act section 22, paragraphs 1 and 2, the mortgage section 53 in (1) and (2) and § 18 stockbroking (1) and (2), before 1 May 2004. January 2004, regardless of section 132 (1) (8). 12 and 13, and section 136 (1), (3) and (5) be included in the basic capital.


(2). For financial institutions who have issued capital pursuant to the banking and Savings Bank Act section 22 (2), before 1 May 2004. January 2004, the Danish financial supervisory authority, if the financial institution does not meet the solvency requirement of section 124 (1) (8). 1, determine that the Board within a specified time limit regardless of the statutes provision must convene the following statutes Supreme authority and account for the money the Foundation's economic conditions.

Section 408. For the classes of insurance that an insurance company or a transverse pension fund has been given a concession to at the time of the change of Decree No. 84 of 6. February 2003 on capital adequacy and operating plans for the insurance companies ' entry into force, as provided in section 126 (1) (8). 6-8, the minimum capital requirement for insurance companies and lateral pension funds first in force on 1 January. January 2007.

(2). Before the expiry of the time limit referred to in paragraph 1, the Danish financial supervisory authority on application allow, that the time limit referred to in paragraph 1 is extended to the 1. January 2009.

(3). Until the provision in section 126 (1) (8). 6-8, comes into force, constitute the minimum capital requirement as follows:





1) for insurance companies, which operates life insurance company: 0.8 million. Euro for public limited liability companies and 0.6 million. Euro for mutual companies and lateral pension funds, and

2) for insurance companies, which operates property and casualty insurance company:





(a)) for the insurance class 14 and 15:1.4 million. Euro for public limited liability companies and 1.05 million. Euro for mutual societies,

(b)) for class 10-13:0.4 million. Euro for public limited liability companies and 0.3 million. Euro for mutual societies,

(c)) for class 1-8, 16 and 18:0.3 million. EUR 0.225 million and for public limited liability companies. Euro for mutual societies, and

d) for class 9 and 17:0.2 million. Euro for public limited liability companies and 0.15 mio. Euro for mutuals.









section 409. Until 1 January 2008. can mutual property and casualty insurance companies January 2007 include allowances for possible supplementary premium referred to in article 6. section 135 (1), nr. 6, without application to the FSA.

(2). Appendix for possible supplementary premium can maximum be included with the amount corresponding to the amount by which it was included in the basic capital by the end of 2001.

(3). Appendix for possible supplementary premium may rank up to and including 2008.

section 410. section 147, paragraph 1, of this law, shall not apply to the stockbroking companies, only if all its properties and shares (shares) in real estate companies are acquired before the 8. October 1998.

(2). Assets covered by paragraph 1 may not be increased to a higher book value than the book value, the assets had the 8. October 1998.

section 411. section 147, paragraph 1, of this law, shall not apply to investment management companies, only if all its properties and shares (shares) in real estate companies are acquired before the date of the Bill's submission to the Folketing on 12. March 2003.

(2). Assets covered by paragraph 1 may not be increased to a higher book value than the book value at the time of the Bill's submission to the Folketing on 12. March 2003.

Section 412. Banks, which, by the date of entry into force of the Act have schemes whereby the shareholders exercise their voting rights at the general meeting through delegated under section 8 (a) of the law on banks and savings banks, see. lovbekendtgørelse nr. 654 of 7. August 2002, can continue to do so.

Section 413. (Omitted)

section 414. People who know date of entry into force of law not covered by the prohibition laid down in article 19, paragraph 1, of the lov nr. 660 of 7. August 2002, may, notwithstanding the provisions referred to in section 77, paragraph 3, section 425, nr. 15, and § 426, nr. 9, maintain dispositions made before 1 May 2004. January 2004.

§ 415. Persons covered by section 80, paragraph 1, which upon the entry into force of the Act had duties under section 24 of Act No. 660 of 7. August 2002, without the Board's permission can continue to do so where the taskbar is notified to the Danish financial supervisory authority before 30 June. June 2004. Have the financial activities of the 1. January 2004 engagement with the undertaking in which the duties are disputed, it can per 1. January 2004 appropriated engagement regardless of section 80 (4), continue to the originally agreed maturity.

(2). Persons covered by section 80, paragraph 2, which at the entry into force of the Act had duties under section 24 of Act No. 660 of 7. August 2002, by the entry into force of the Act or who were not covered by section 24 of Act No. 660 of 7. August 2002, without management's permission can continue to do so where the taskbar is notified to the Danish financial supervisory authority before 30 June. June 2004. Have the financial activities of the 1. January 2004 engagement with the undertaking in which the duties are disputed, it can per 1. January 2004 appropriated engagement regardless of section 80 (4), continue to the originally agreed maturity.

(3). With undertakings in which persons covered by section 80 (1) and (2) by the date of entry into force of the Act had duties pursuant to sections 28, 29, 34 and 35 of law No. 660 of 7. August 2002, as the financial activities of the 1. January 2004 had involvement with, can it at 1. January 2004 appropriated engagement regardless of section 80 (4), continue to the originally agreed maturity.

(4). Paragraphs 1 to 3 shall apply mutatis mutandis to persons covered by section 425, nr. 5 and § 426, nr. 11.

Section 416. For assets acquired before the date of Bill's tabling of the Folketing, the 12. March 2003, the provisions of § 163 (1) (8). 4, shall not apply.

§ 417. (Omitted)

Changes in other legislation

section 418. (Omitted)

Section 419. (Omitted)

Section 420. (Omitted)

§ 421. (Omitted)

Section 422. (Omitted)

section 423. (Omitted)

section 424. (Omitted)

section 425. (Omitted)

§ 426. (Omitted)

section 427. (Omitted)

§ 428. (Omitted)

section 429. (Omitted)

Section 430. (Omitted)

§ 431. (Omitted)

section 432. (Omitted)

§ 433. (Omitted)

§ 434. (Omitted)

Section 435. (Omitted)

§ 436. (Omitted)

§ 437. (Omitted)

§ 437 a. (Omitted)

§ 437 b. (Omitted)

Faroe Islands and Greenland

§ 438. The law does not apply to the Faroe Islands and Greenland but may by Royal Decree is implemented in these regions with the variances, as the special Faroese and Greenlandic conditions dictate, without prejudice. However, paragraphs 2 to 4.

(2). The law can not be put in force for the Faroe Islands, as far as the insurance company and the mortgage company.

(3). Similarly, sections 420 and 421.

(4). Section 419 can not be put into force for Greenland and the Faroe Islands.




Act No. 903 of 17. November 2003, includes the following entry-into-force provisions:



§ 5

The law shall enter into force on the day after publication in the Official Gazette. 4)

(2). (Omitted)

(3). (Omitted)




Act No. 1171 of 19. December 2003 includes the following entry into force and transitional provisions:



§ 6

The law shall enter into force on the 1. January 2004, see. However, paragraphs 2 and 3.

(2). (Omitted)

(3). § 3, nr. 6, 20-23, 27 and 29, shall enter into force on the 1. January 2005.

§ 7

(Omitted)

§ 8

(Omitted)

§ 9

The Board members who know date of entry into force of the Act have duties or employments covered by the prohibitions provided for in section 98 as amended by this Act, § 3, nr. 13, may continue as members of the Board of Directors of the investment management company until the expiry of the period in which they are elected, and they cannot be re-elected.

(2). The directors and other senior staff who know date of entry into force of the Act have directorships, as covered by the prohibitions provided for in § 99 paragraph 2, as amended by this Act, § 3, nr. 15, will be able to continue as Board members until the expiry of the period in which they are elected, and they cannot be re-elected.

(3). The directors and other senior staff who know the law's entry into force legally has an employment relationship, which is covered by the prohibitions provided for in § 99 paragraph 2, as amended by this Act, § 3, nr. 15 may, after notification to the FSA to continue such employment.

§ 10

The law does not apply to the Faroe Islands and Greenland but may by Royal Decree is put into force in whole or in part for these regions with the variances, as the special Faroese and Greenlandic conditions dictate, without prejudice. However, paragraph 2.

(2). § 3 can not be put in force on the Faroe Islands, as far as the insurance company and the mortgage company.




Act No. 365 of 19. May 2004 contains the following entry into force and transitional provisions:



§ 6

The law shall enter into force on the 1. July 2004, see. However, paragraphs 2 and 3.

(2). (Omitted)

(3). § 1, nr. 5, shall enter into force on 8 November. October 2004.

§ 7

(Omitted)

§ 8

Sections 1 and 5 of the Act does not apply to the Faroe Islands and Greenland but may by Royal Decree is put into force in whole or in part for these regions with the variances, as the special Faroese and Greenlandic conditions dictate, without prejudice. However, paragraph 2.

(2). § 1 may not be put into force in the Faroe Islands, as far as the insurance company and the mortgage company.

(3). (Omitted)




Act No. 490 of 9. June 2004 includes the following entry into force and transitional provisions:



§ 6

The law shall enter into force on the day after publication in the Official Gazette of 5) of the basic regulation. However, paragraph 2.

(2). (Omitted)

§ 7

(Omitted)




Act No. 491 of 9. June 2004 includes the following entry into force and transitional provisions:



§ 6


The law shall enter into force on the 1. January 2005, see. However, paragraphs 2 and 3.

(2). (Omitted)

(3). § 1, nr. 4, 7 to 10, 13, 30, 34, 37 and 41, § 2, nr. 1-3, 12 and 13, § 3, nr. 1 and 2, § 4, no. 5, and section 5 shall enter into force on the 1. July 2004.

(4). The law does not apply to the Faroe Islands and Greenland but may by Royal Decree is implemented in these regions with the variances, as the special Faroese and Greenlandic conditions warrant.




Act No. 1383 of 20. December 2004 includes the following entry into force and transitional provisions:



§ 17

The law shall enter into force on the 1. January 2005, see. However, paragraphs 2 to 4.

(2). Notwithstanding section 1, nr. 17, can an insurance company until 1. July 2005 maintain insurance brokerage agreements concluded before 1 January 2002. January 2005.

(3). Notwithstanding section 1, nr. 50 6), a person who at the date of entry into force of the act legally is elected as auditor of a financial undertaking, and which is not chartered or certified accountant, continue the duties of Auditor until the expiry of the period for which the auditor is elected.

(4). (Omitted)

§ 18

The law does not apply to the Faroe Islands and Greenland, without prejudice. However, paragraphs 2 and 3.

(2). sections 1, 3 and 4 may, however, by Royal Decree is put into force in whole or in part for Greenland and the Faroe Islands with the derogations which the special Greenlandic and Faroese conditions warrant.

(3). (Omitted)




Act No. 1460 of 22. December 2004 includes the following entry into force and transitional provisions:



§ 3

(Omitted)

(2). § 1, nr. 2 and 3, 8-12, 14, 18-20, 22-24 and 30, and § 2 shall enter into force on the 1. July 2005.

(3). (Omitted)

(4). (Omitted)

§ 4

The law does not apply to the Faroe Islands and Greenland but may by Royal Decree is put into force in whole or in part for these regions with the variances, as the special Faroese and Greenlandic conditions warrant.




Act No. 387 of 30. May 2005 contains the following entry into force and transitional provisions:



§ 6

The time of the entry into force of this Act shall be established by the Minister for economic and business affairs. The Minister may determine, including that the law will come into force at different times. 7)

§ 7

The law does not apply to Greenland and the Faroe Islands, but the sections 1, 2 and 6 may by Royal Decree is implemented in these regions with the variances, as the special Greenlandic and Faroese conditions warrant.




Act No. 411 of 1. June 2005 contains the following entry into force and transitional provisions:



§ 6

The law shall enter into force on the 1. July 2005.

(2). (Omitted)

(3). (Omitted)

(4). § 2, nr. 12 8), have effect from 1 January. January 2005.

§ 7

The law does not apply to the Faroe Islands and Greenland but may by Royal Decree is implemented in these regions with the variances, as the special Faroese or Greenlandic circumstances warrant.




Act No. 431 of 6. June 2005 contains the following entry into force and transitional provisions:



§ 85

The law shall enter into force on the 1. November 2005, see. However, paragraph 2.

(2). (Omitted)

§ 86

(Omitted)




Act No. 1428 of 21. December 2005, includes the following entry into force and transitional provisions:



§ 6

The law shall enter into force on the 1. January 2006.

§ 7

(Omitted)

§ 8

(Omitted)

§ 9

(Omitted)

§ 10

The law does not apply to the Faroe Islands and Greenland, but sections 1, 3 and 4 may, by Royal Decree is implemented in these regions with the variances, as the special Faroese or Greenlandic circumstances warrant.




Act No. 116 of 27. February 2006 contains the following entry into force and transitional provisions:



§ 5

The law shall enter into force on the 1. March 2006.

§ 6

The law does not apply to the Faroe Islands and Greenland, without prejudice. However, paragraph 2.

(2). sections 1 and 2 may, by Royal Decree put into force for Greenland and the Faroe Islands with the derogations which the special Faroese or Greenlandic circumstances warrant.




Act No. 527 of 7. June 2006, following entry into force and transitional provisions:



§ 4

The law shall enter into force on the 1. January 2007, see. However, paragraph 2.

(2). § 1, nr. 43, and sections 2 and 3 of this article shall enter into force on the 1. July 2006.

§ 5

Banks, building societies, stockbroking firms and investment management companies can only use the more advanced internal method for the estimation of risk-weighted items outside the trading book and the internal methods of estimation of operational risks, see. § 1, nr. 23, from the 1. January 2008.

(2). Banks, building societies, stockbroking firms and investment management companies can forward to the 1. January 2008 instead of the default method for the estimation of risk-weighted items outside the trading book using the method for the calculation of risk-weighted items outside the trading book, which was permitted by rules that were in force on 31 December 1996. December 2006, with the changes brought about by the rules laid down under paragraph 4.

(3). Banks, building societies, stockbroking firms and investment management companies, which use internal methods for the calculation of risk-weighted items outside the trading book or internal methods of estimation of operational risks, see. § 1, nr. 23, in 2007, 2008 and 2009 have a capital base that at least 95 per cent represent respectively, 90 per cent and 80 per cent of the solvency requirement determined in accordance with the rules in force on 31 December 1996. December 2006, or rules laid down under paragraph 4.

(4). The Danish financial supervisory authority shall lay down detailed rules for the statement of account referred to in paragraph 2 as well as for the statement of account referred to in paragraph 3 of the solvency requirement of 95 per cent, respectively, 90 per cent and 80 per cent.

(5). Stockbroking companies that have permission to the activities referred to in annex 4, section A, point 1. 2-4, in the financial business Act, after permission from the Danish financial supervisory authority until 31 March 2006. December 2011 assess the risk-weighted items exclusive risk-weighted items for operational risk, if the trading book do not exceed 50 million. euro, and if the average number of employees does not exceed 100 during the fiscal year. Instead, the solvency requirement is calculated as the lower of





1) the solvency requirement for the operational risk or

2) the higher of the following amounts:





(a) the solvency requirement, see). § 125 (2) nr. 1, excluding the solvency requirement for the operational risk.

(b) the solvency requirement, see). § 125, paragraph 5.









§ 6

The law does not apply to the Faroe Islands and Greenland but may by Royal Decree is implemented in these regions with the variances, as the special Faroese and Greenlandic conditions warrant.




Act No. 108 of 7. February 2007 entry into force and transitional provisions are as follows:



§ 21

(Omitted)

(2). (Omitted)

(3). § 1, nr. 88, § 3, nr. 1, 3, 11, 24, 27, 30, 40-43, 58, 61, 62, 68, 69, 76, 81, 83, 85 and 86, § 6, nr. 1-9, § 7, § 8, nr. 3, 8 and 9, § 9, nr. 6 and 7, section 10, no. 6, and sections 11-15 shall enter into force on the 15. February 2007.

(4). § 1, nr. 2, 3, 54-60, 62, 63, 90, 93, 94, 105-109, 116, 118 and 119, § 3, nr. 74, and section 4 shall enter into force on the 1. June 2007.

(5). (Omitted)

(6). § 1, nr. 88, § 3, nr. 62, § 11, nr. 1, § 12, nr. 12 and section 13, nr. 2, have effect from 1 January. January 2006.

(7). (Omitted)

§ 22

(Omitted)

§ 23

The law does not apply to the Faroe Islands and Greenland, without prejudice. However, paragraphs 2 and 3.

(2). sections 1-6, 13 and 14 may, by Royal Decree in whole or in part, be in force for the Faroe Islands and Greenland with the variances, as the special Faroese and Greenlandic conditions warrant.

(3). (Omitted)

(4). (Omitted)




Act No. 397 of 30. April 2007, following entry into force and transitional provisions:



§ 6

The law shall enter into force on the 1. July 2007, see. However, paragraph 2.

(2). (Omitted)

§ 7

The entry into force of the Act approved by fåmandsforeninger may at a general meeting not later than 30 June. June 2008 decide to transform fåmandsforeningen into an already established professional association. Resolution on transformation shall be taken by the majority required for the amendment of the articles.

(2). By transformation transferred fåmandsforeningens assets and liabilities as a whole for the Professional Association. The transfer can be carried out without the consent of the creditors.

(3). The Danish public companies Act § § 134-134 in the finder mutatis mutandis mutatis mutandis to fåmandsforeningen, when the general Assembly has taken a decision on conversion to professional association.

(4). The transformation is regarded as happened when the Statute is changed and the conversion is registered and announced in the Danish Commerce and companies agency computerized information system.

§ 8

The law does not apply to the Faroe Islands and Greenland, without prejudice. However, paragraphs 2 and 3.

(2). sections 1 and 2 may, by Royal Decree in whole or in part, be in force for the Faroe Islands and Greenland with the variances, as the special Faroese and Greenlandic conditions warrant.

(3). § 5 may by Royal Decree in whole or in part be put into force for Greenland of the variances, as the special Greenlandic conditions warrant.





Act No. 576 of 6. June 2007, following entry into force and transitional provisions:



§ 12

The law shall enter into force on the 1. July 2007, see. However, paragraphs 2 and 3.

(2). (Omitted)

(3). § 1, nr. 18, 20-24 and 42, § 6, nr. 1 and 6-8, § 7, nr. 1, 6 and 7, and section 8, no. 5 and 6, shall enter into force on the 1. November 2007.

section 13

section 126 (1) (8). 9, in the financial business act as amended by this Act, section 1, no. 13, shall not apply to insurance undertakings conducting reinsurance activities, and which the 1. July 2007 have ceased to conclude new reinsurance contracts and exclusively administer their existing portfolio in order to set up their business.

(2). The provision in paragraph 69 (b) of the Danish public companies act as amended by this law § 4, no. 1, however, will have effect only for each company from the next general meeting, which will take place after the Act's entry into force.

§ 14

The law does not apply to the Faroe Islands and Greenland, without prejudice. However, paragraphs 2 and 3.

(2). § § 1-4 may, by Royal Decree in whole or in part, be in force for the Faroe Islands and Greenland with the variances, as the special Faroese and Greenlandic conditions warrant.

(3). (Omitted)




Act No. 577 of 6. June 2007 contains the following entry into force and transitional provisions:



§ 12

The law shall enter into force on the 1. July 2007, see. However, paragraphs 2 to 4.

(2). (Omitted)

(3). (Omitted)

(4). (Omitted)

section 13

For loans covered by section 152 (d) (2) of the financial business act as amended by this Act, section 1, no. 4, is the loan limit is 70%, if the loan is provided before the 1. July 2009.

§ 14

(Omitted)

§ 15

(Omitted)

§ 16

(Omitted)

§ 17

(Omitted)

§ 18

Act §§ 1 and 3-11 shall not apply to the Faroe Islands and Greenland, without prejudice. However, paragraphs 3 and 4.

(2). (Omitted)

(3). sections 1, 3, 4 and 8 may, by Royal Decree in whole or in part, be in force for the Faroe Islands and Greenland with the variances, as the special Faroese or Greenlandic circumstances warrant.

(4). (Omitted)




Act No. 219 of 5. April 2008 includes the following entry-into-force provisions:



§ 5

The law will enter into force on 7. April 2008.

§ 6

(Omitted)
Economic and business affairs, the 22. May 2008 Bendt Bendtsen/Henrik Bjerre-Nielsen Annex 1

The banking company









1)





The receipt of deposits and other repayable funds.







2)





Lending business, including, among other things,





 









consumer credit,





 









mortgage,





 









factoring and discounting,





 









trade credits (including forfatering),





 









financial leasing.







3)





Payment processing.







4)





Issuing and administering means of payment (credit card, travellers cheques, bank drafts).







5)





Collateral and guarantees.







6)





Participation in the issuance of securities and the services associated therewith.







7)





Advice to undertakings on capital structure, industrial strategy and related questions and advice and services relating to the Association and the purchase of undertakings.







8)





Monetary intermediation (money broking).







9)





Credit information.







10)





Box rental.







11)





Transactions for own account with any of the instruments listed in annex 5.







12)





Safekeeping and administration in relation to one or more of the instruments listed in annex 5 as well as mortgages.







13)





Other activities in connection with the circulation of money and credit funds.







14)





Issuers of electronic money.







Annex 2

Credit company









1)





The receipt of deposits and other repayable funds.







2)





Lending business, including, among other things,





 









consumer credit,





 









mortgage,





 









factoring and discounting,





 









trade credits (including forfatering).







3)





Financial leasing.







4)





Payment processing.







5)





Issuing and administering means of payment (credit card, travellers cheques, bank drafts).







6)





Collateral and guarantees.







7)





Transactions for own account or for clients ' expense relating to





 



(a))





money market instruments (cheques, bills, certificates of deposit, etc.),





 



(b))





the foreign exchange market,





 



(c))





financial futures and options,





 



(d))





Foreign Exchange and interest rate instruments,





 



(e))





securities.







8)





Participation in the issuance of securities and the services associated therewith.







9)





Advice to undertakings on capital structure, industrial strategy and related questions and advice and services relating to the Association and the purchase of undertakings.







10)





Monetary intermediation (money broking).







11)





Portfolio management and advice.







12)





Safekeeping and administration of securities.







13)





Credit information.







14)





Box rental.







Annex 3

Mortgage company









1)





Granting of loans against mortgages registered on the basis of the issue of mortgage bonds or other securities.







2)





Granting of loans without mortgages to the public authorities or against joint and several guarantee from a public authority.







3)





Transactions for own account with any of the instruments listed in annex 5.







4)






Storage and management of own mortgage bonds and other securities.







Annex 4

Investment services









SUBPARAGRAPH (A)







1)





(a))





Reception and transmission of investors ' orders on behalf of one or more of the instruments listed in annex 5.





 



(b))





Mediation of contacts between a financial undertaking with permission as a securities trader and a natural or legal person who wants to buy or sell, including to perform discretionary portfolio management with one or more of the instruments listed in annex 5.







2)





Execution of orders with one or more of the instruments listed in annex 5 for the investors ' expense.







3)





Transactions for own account with any of the instruments listed in annex 5.







4)





Discretionary portfolio management for individual investors, securities held on instructions from investors, where such portfolios include one or more of the instruments listed in annex 5.







5)





Investment advice.







6)





Underwriting in connection with emissions of one or more of the instruments listed in annex 5 or location of such instruments on a firm commitment basis.







7)





Placement of financial instruments without a firm commitment.







8)





Operation of multilateral trading facilities.







9)





Storage and management for investors ' expense in connection with one or more of the instruments listed in annex 5, including depot activities and services associated with one or more of the in no. 1-8 the said activities.





 

 





SUBPARAGRAPH (B)







1)





Box rental.







2)





Credit or loans to an investor, so that the latter can carry out a transaction in one or more of the instruments listed in annex 5, provided the firm granting the credit or loan, enlisted in the transaction.







3)





Advice to undertakings on capital structure, industrial strategy and related questions and advice and services relating to mergers and the purchase of undertakings.







4)





Currency transactions, when the transactions in question is part of the provision of investment services.







5)





Investment research and financial analysis or other forms of general recommendations relating to one or more of the instruments listed in annex 5.







6)





Services related to underwriting.







7)





Investment services and investment activities as well as ancillary services of the type referred to in this annex regarding the underlying instrument for derivatives covered by Annex 5, nr. 5-7 and 10 when these are linked to serviceydelsen investment or ancillary services.







8)





Mediation and advice on loans and credits for leveraged investments.







Annex 5

Instruments









1)





Marketable securities (with the exception of payment instruments), which can be traded in the capital market, including





 



(a))





shares in companies and other securities equivalent to shares in companies, partnerships or other entities, and depositary receipts,





 



(b))





bonds and other debt instruments, including certificates of such securities, and





 



(c))





all other securities the rate at which the securities referred to in point (a) or (b) can be acquired or sold, or as cash-settled by an amount to be determined securities, currencies, interest rates or yields, commodities index and other indexes and goals as a reference,







2)





money market instruments, including Treasury bills, certificates of deposit and commercial papers, with the exception of payment instruments,







3)





shares in collective investment schemes covered by the Act on investment associations and special associations and other collective investment schemes, etc. and units of other undertakings for collective investment,







4)





options, futures, swaps, forward rate agreements (Fras) and any other derivative contracts relating to securities, currencies, interest rates or yields, or other derivatives, financial indices or financial measures which may be settled physically or in cash;,







5)





options, futures, swaps, forward rate agreements (Fras) and any other derivative contract relating to commodities that must be settled in cash or may be settled in cash, as if one of the parties wishes it (by any reason other than breach, or any other cause of termination),







6)





options, futures, swaps, and any other derivative contract relating to commodities that can be physically settled provided that they are traded on a regulated market or a multilateral trading facility,







7)





options, futures, swaps, forward contracts and any other derivative contracts relating to commodities not covered by nr. 6, and which may be settled physically and do not have any commercial purposes, which have the characteristics of other derivative financial instruments, taking account, inter alia,. taken into account, whether they are cleared and settled through recognised clearing houses or are subject to regular determination of the margin,







8)





credit derivatives,







9)





financial difference contracts (Cfds),







10)





options, futures, swaps, forward rate agreements (Fras) and any other derivative contracts relating to climatic variables, freight rates, emission allowances or inflation rates or other official economic statistics that must be settled in cash or may be settled in cash, as if one of the parties wishes it (by any reason other than breach, or any other cause of termination), and any other derivative contracts relating to assets, rights, obligations, indices and targets, which are not covered by the other numbers and which have characteristics of other derivative financial instruments, taking account, inter alia,. taken into account, whether they are traded on a regulated market or a multilateral trading facility, cleared and settled through recognised clearing houses or are subject to regular determination of margin, and







11)





foreign exchange spot transactions in investment purposes with a view to obtaining profits from changes in exchange rates on currency.







Annex 6

Investment management business









1)





Management of special investment funds, approved in accordance with the Act on investment associations and special associations and other collective investment schemes, etc.







2)





Administration of special associations approved in accordance with the Act on investment associations and special associations and other collective investment schemes, etc.








3)





Administration of professional associations that are registered pursuant to the Act on investment associations and special associations and other collective investment schemes, etc.







4)





Administration of fåmandsforeninger, that is approved in accordance with the Act on investment associations and special associations and other collective investment schemes, etc.







5)





Administration of hedge funds that are approved in accordance with the Act on investment associations and special associations and other collective investment schemes, etc.







6)





Management of other collective investment schemes, which are covered by the Act on investment associations and special associations and other collective investment schemes, etc.







Annex 7

Insurance – injury









Classification of risks by using classes.







1)





Accidents (including accidents at work and occupational diseases): summaforsikring, compensation of economic loss, their combinations, and passenger transport.







2)





Disease: summaforsikring, compensation of economic loss and combinations thereof.







3)





Comprehensive insurance of land vehicles (other than railway rolling stock): all damage on land vehicles and not motordrevne land vehicles.







4)





Comprehensive insurance for railway vehicles: all damage to or loss of railway vehicles.







5)





Comprehensive insurance for aircraft: all damage to the aircraft.







6)





Comprehensive insurance for vessels sailing on the seas, lakes and rivers: all damage to river vessels, indsøfartøjer and or canals.







7)





Carriage of goods (including goods, baggage and all other goods): all damage to transported goods or baggage, irrespective of the nature of the means of transport.







8)





Fire and natural forces: all damage to or loss of property (other than property included in classes 3, 4, 5, 6 and 7), when they are caused by fire, explosion, storm, natural forces (except storm), nuclear energy and landslides.







9)





Other property damage: all damage to or loss of property (other than property included in classes 3, 4, 5, 6 and 7) due to hail or frost damage when these or have other causes of any kind, URf.eks. theft, except those listed in paragraph 6; 8.







10)





Liability insurance for land vehicles: all liability arising out of the use of motorised land vehicles (including carrier's liability).







11)





Liability insurance for aircraft means any liability attributable to the use of aircraft (including carrier's liability).







12)





Liability insurance for vessels sailing on the seas, lakes and rivers: any liability attributable to the use of river, Lake and or canals (including carrier's liability).







13)





General liability: any responsibility, not listed under Nos 10, 11 and 12.







14)





Credit: General insolvency, export credit, sale on installment, mortgage insurance and agricultural insurance.







15)





Bail: direct and indirect surety bail.







16)





Miscellaneous financial loss: unemployment risks, inkassotab (plain), bad weather, loss of profit, continuing general expenses, unforeseen trading expenses, loss of sales value, rents or loss of income, indirect trading losses other than those mentioned above, not business financial losses and other economic losses.







17)





Legal expenses insurance: legal expenses insurance.







18)





Assistance: assistance for persons who get into difficulties while travelling, while away from home or while away from their permanent residence.







Annex 8

Insurance – life









Classification of risks by using classes.





 





I. Ordinary life insurance:







(a))





Life insurance (particularly life-contingent capital insurance, discontinuing or lifelong life insurance, life insurance with cash-out while still alive and life insurance with refund of premiums),







(b))





pension insurance,







(c))





complementary business written in relation to life insurance (especially insurance against bodily injury including incapacity, and insurance against death resulting from an accident or insurance against disability resulting from an accident or illness).





 

 





II. Marriage and birth insurance:







(a))





Insurance which comes to payout by marriage;







(b))





insurance which comes to payment of childbirth.





 

 





III. Insurance, which are associated with investment funds:







(a))





Life insurance (particularly life-contingent capital insurance, discontinuing or lifelong life insurance, life insurance with cash-out while still alive, life insurance with a refund of premiums, insurance that will be cleared by marriage, and insurance that will be cleared by birth),







(b))





pension insurance scheme.





 

 





IV. Permanent health insurance (long term health insurance): health insurance, which is concluded for a long period of time and is terminated from the company's side throughout the period.





 





V. tontines: business, involving the creation of member associations with a view to jointly capitalising of contributions and the resulting Fortune either for the survivors or to the deceased's heirs or beneficiaries.





 





Vi. Capital Redemption operations: the company, which is based on actuarial calculations, which includes the obligations of a specified duration and amount against payment of a lump sum or regular deposits laid down in advance.







Official notes

1) Act contains provisions transposing first Council Directive 73/239/EEC of 24. July 1973, Official Journal No. L 228, p. 3 (1. non-life insurance directive), Council Directive 76/580/EEC of 29 October 1993. June 1976, Official Journal No. L 189, p. 13 (change of 1. non-life insurance directive), parts of the Fourth Council Directive 78/660/EEC of 25. July 1978, Official Journal No. L 222, p. 11 (fourth company law directive), parts of the seventh Council Directive 83/349/EEC of 13. June 1983 (seventh company law directive), parts of the Council eighth directive 84/253/EEC of 10. April 1984, Official Journal No. L 126, p. 20 (the eighth company law directive), Council Directive 84/641/EEC of 10. December 1984, Official Journal No. L 339, p. 21 (change of 1. non-life insurance directive), parts of Council Directive 85/611/EEC of 20. December 1985, Official Journal No. L 375, p. 3 (UCITS directive), Council Directive 86/635/EEC of 8. December 1986, Official Journal No. L 372, p. 1 (bank accounts directive), second Council Directive 88/357/EEC of 22. June 1988, Official Journal No. L 172, p. 1 (2. non-life insurance directive), Council Directive 89/117/EEC of 13. February 1989, Official Journal No. L 44, p. 40 (publication of the preliminary documents to the branches from non-member countries), parts of Council Directive 90/618/EEC of 8. November 1990, Official Journal No. L 330, p. 44 (change of 1. and 2. non-life insurance directive), Council Directive 91/674/EEC of 19. December 1991, Official Journal No. L 374, p. 7 (the insurance accounts directive), Council Directive 92/49/EEC of 18. June 1992, Official Journal No. L 228, p. 1 (3. non-life insurance directive), European Parliament and Council Directive 95/26/EC of 29 April 2004. June 1995, Official Journal No. L 168, p. 7 (BCCI directive), the European Parliament and Council Directive 98/31/EC of 22. June 1998, Official Journal No. L 204, p. 13 (Amendment of the capital requirements directive) of the European Parliament and Council Directive 98/33/EC of 22. June 1998, Official Journal No. L 204, p. 27, Council Directive 98/49/EC of 29 April 2004. June 1998, Official Journal No. L 209, p. 46, European Parliament and Council Directive 98/78/EC of 27. October 1998, Official Journal No. L 330, p. 1 (insurance group directive), parts of the European Parliament and of the Council Directive 2000/26/EC of 16. May 2000, Official Journal No. L 181, p. 65 (4th motor insurance directive), the European Parliament and of the Council Directive 2000/46/EC of 18. September 2000, Official Journal No. L 275, p. 39 (e-money), the European Parliament and Council Directive 2000/64/EC of 7. November 2000, Official Journal No. L 290, p. 27 (Exchange of information), the European Parliament and of the Council Directive 2001/17/EC of 19. March 2001, Official Journal No. L 110, p. 28 (directive on winding-up of insurance), the European Parliament and of the Council Directive 2001/24/EC of 4. April 2001, Official Journal No. L 125, p. 15 (directive on winding-up of credit institutions), European Parliament and Council Directive 2001/107/EC of 21. January 2002, Official Journal No. L 41, p. 20 (service provider), the European Parliament and Council Directive 2002/13/EC of 5. March 2002, Official Journal No. L 77, p. 17 (solvency 1-directive) and directives 79/267, 90/619, 92/96 and 2002/12, which is now compiled in European Parliament and Council Directive 2002/83/EC of 5. November 2002, Official Journal No. L 345, p. 1 (life assurance Directive), the European Parliament and of the Council Directive 2002/87/EC of 16. December 2002 (Official Journal of the European Communities 2003 nr. L 35, p. 1) (conglomerates directive), parts of the European Parliament and of the Council Directive 2002/92/EC of 9. December 2002, the official journal of the European Communities 2003 nr. L 9, s. 3 (directive on insurance mediation), parts of the European Parliament and of the Council Directive 2005/14/EC of 11. May 2005, (the official journal of the European Union 2005 nr. L 149, p. 14) (fifth motor insurance directive), parts of the European Parliament and of the Council Directive 2005/68/EC of 16. November 2005 on reinsurance and amending Council Directives 73/239/EEC and 92/49/EEC and Directive 98/78/EC and 2002/83/EC (Official Journal of the European Union 2005 nr. L 323, p. 1) (reinsurance directive), parts of the European Parliament and of the Council Directive 2006/48/EC of 14. June 2006 relating to the taking up and pursuit of the business of credit institutions (recast) (Official Journal of the European Union 2006 nr. L 177, p. 1) (banking directive), parts of the European Parliament and of the Council Directive 2006/49/EC of 14. June 2006 laying down the requirements for the capital adequacy of investment firms and credit institutions (recast) (Official Journal of the European Union 2006 nr. L 177, p. 201) (CRD), parts of the European Parliament and of the Council Directive 2004/39/EC of 21. April 2004 on markets in financial instruments, amending Council directives 85/611/EEC and 93/6/EEC and European Parliament and Council Directive 2000/12/EC and repealing Council Directive 93/22/EEC (Official Journal of the European Union 2004 nr. L 145, p. 1) (MiFID), parts of the European Parliament and Council Directive 2006/31/EC of 5. April 2006 amending Directive 2004/39/EC on markets in financial instruments, as regards certain deadlines (the official journal of the European Union 2006 nr. L 114, p. 60) (snooze).

2) Loan limit is 70%, if the loan is provided before the 1. July 2009, see. section 13 of the Act No. 577 of 6. June 2007.

3) due to an error in law No. 577 of 6. June 2007 is the provision inserted as paragraph (5) and not as (6).

4) Act was promulgated in the Official Gazette (A) the 18. November 2003.

5) Act was promulgated in the Official Gazette (A) the 10. June 2004.

6) § 1, nr. 50 of law No. 1383 of 20. December 2004 deals with law on financial business section 199 (1), (2). PT.

7) Minister for economic and Business Affairs provided for by Decree No. 391 of 30. May 2005 for entry into force of law No. 387 of 30. May 2005 amending the law on a ship financial, the financial business Act, law on mergers, divisions and transfers of assets etc. (mergers), law on the tax treatment of gains and losses on receivables, debt and financial contracts (kursgevinstloven) and law on income taxation of limited liability companies, etc. (Corporation Tax Act), the law entered into force on 1. June 2005.

8) § 2, nr. 12 of law No. 411 of 1. June 2005 deals with law on financial business sections 384 and 385.