Announcement Of Law On A Guarantee Fund For Depositors And Investors

Original Language Title: Bekendtgørelse af lov om en garantifond for indskydere og investorer

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Read the untranslated law here: https://www.retsinformation.dk/Forms/R0710.aspx?id=126329

Overview (table of contents) Chapter 1 of the guarantee fund status and Enterpise area

Chapter 2 debtor institutions

Chapter 3 the Fund's departments

Chapter 4 the determination of contribution

Chapter 5 the Fund's coverage area

Chapter 6 Payouts from the Fund for depositors and investors

Chapter 7 of the Fund management and administration

Chapter 7 (a) voluntary schemes

Chapter 8 Supervision

Chapter 8 Chapter 9 penalties

Chapter 10 the effective provisions, etc., The full text of the Ordinance to the law on a guarantee fund for depositors and investorer1)

Hereby promulgated law on a guarantee fund for depositors and investors, without prejudice. lovbekendtgørelse nr. 1009 of 8. August 2007, with the changes imposed by section 5 of law No. 516 of 6. June 2007 and § 1 of lov nr. 338 of 1. May 2009.

The changes imposed by § 1, nr. 8-10 of law No. 338 of 1. May 2009 amending the law on a guarantee fund for depositors and investors, the law on financial stability and law on state capital deposits in credit institutions (increase in the deposit guarantee and settlement company's takeover of institutions outside the Private contingency Association, etc.), are not included in this consolidation Act, since the changes first will enter into force on 31. December 2010, see. § 4 (3) of law No. 338 of 1. May 2009.

Chapter 1

The guarantee fund status and Enterpise area

§ 1. Guarantee fund for depositors and investors (Fund) is a private, independent institution.

(2). The Fund shall provide depositors and investors in the in section 3, paragraph 1, and section 4 of the mentioned institutions coverage of losses pursuant to § § 9-11 in case of receivership or bankruptcy.

§ 2. (Repealed).

Chapter 2

Debtor institutions

§ 3. The following institutions shall be connected and make contributions to the Fund:





1) financial institutions,

2) mortgage-credit institutions,

3) stockbroking companies and investment management companies, with regard to the part of the companies ' activity that is covered by an authorisation in accordance with the financial business Act, section 10, paragraph 2, and

4) branches located in Denmark by credit institutions and investment firms with registered office in a country outside the European Union with the exception of countries with which the community has entered into an agreement with.





(2). The Danish financial supervisory authority may lay down provisions relating to branches of credit institutions and investment firms with registered office in Denmark located in countries outside the European Union with the exception of countries with which the community has entered into an agreement with, can be exempted from being covered by the Fund.

§ 4. Branches located in Denmark by credit institutions, investment firms and investment management companies based in countries within the European Union or in countries with which the community has entered into an agreement with, can join the Fund as a supplement to the home country's guarantee scheme, if the Danish scheme as referred to in sections 9 to 11 are more favorable than the home Member State scheme. FSA sets out detailed provisions to this effect.

Chapter 3

The Fund's departments

§ 5. The Fund is divided into three departments: the Department of banks, mortgage Department and stockbroking company Department.

(2). The Banking Department include those in section 3 (1) (8). 1, specified departments and affiliated branches, see. (5).

(3). Mortgage Department include those in section 3 (1) (8). 2, specified departments and affiliated branches, see. (5).

(4). Stockbroking company Department include in section 3 (1) (8). 3, specified departments and affiliated branches, see. (5).

(5). The Fund's Board of Directors makes the decision, to which the Department referred to in § 3 (1) (8). 4, and section 4 of the mentioned branches must be connected.

§ 6. In the event that a debtor liable Department declares bankruptcy or goes bankrupt, applied contributions, including representation, from institutions in the business unit with which the institution concerned is linked, for coverage of the Department's obligation in accordance with the law.

(2). If the contribution referred to in paragraph 1 are not sufficient to cover the Department's obligations under the law, the Department a loan granted by the other departments in relation to the Department's overall contribution.

(3). A Department may borrow an amount equal to 50 percent of the requirement for the size of the other departments ' cash, up to a maximum of 100 million. USD per unit, for the coverage of obligations arose in a single fiscal year.

(4). The Minister for economic and business affairs may, with the Finance Committee's connection guarantee loans contracted by the Fund to meet its obligations.

(5). If that happens the distribution from the bankruptcy estate, the distribution is first devolved to the departments, which have granted loans in accordance with paragraph 2. Remaining amount is introduced into the Chamber, as the bankrupt institution falls under.

Chapter 4

Determination of contribution

§ 7. The Fund's assets must be at least 3.2 billion. us $.

(2). After negotiation with the Danmarks Nationalbank FSA rules lay down on institutions ' contribution to the Fund, on the minimum requirements for the size of the individual departments ' assets and about the terms and conditions for borrowing, without prejudice. § 6 (2). Contributions from institutions shall be effected by deposit and representation.

(3). Financial institutions ' total contribution on net deposits can be covered within a fiscal year shall not exceed an amount equivalent to 2 per thousand of institutions ' deposit mass. Institutions ' overall contribution to departments for coverage of funds and securities which cannot be returned, as well as repayments on any loan that a Department has the recorded, see. § 6 (2), within each fiscal year shall not exceed 50 per cent of the requirement for the size of a Department's assets.

(4). Institutions ' individual contributions are calculated on the basis of the institutions ' covered the net deposits, covered funds and covered securities. The Danish financial supervisory authority on the recommendation of the Fund's Board of Directors may lay down detailed rules concerning the calculation of contributions.

(5). The Minister for economic and business affairs may change the requirements for the size of the Fund's assets in accordance with paragraph 1.

§ 8. The Fund shall inform the FSA, if an institution fails to comply with the obligations incumbent upon the Department as a member of the Fund. If a branch has joined the Fund, without prejudice. section 4, shall inform the financial supervision by the competent authorities in the home Member State of the branch.

(2). The Danish financial supervisory authority may revoke an institution's authorisation to operate, if the institution does not comply with the Act, regulations issued pursuant to the law or provisions in the Fund's statutes.

Chapter 5

The Fund's coverage area

§ 9. In the in clause 3 (1) (8). referred to in paragraph 3, as well as institutions (1). 4, and section 4 of the mentioned branches of credit institutions which are connected to the Banking Department, covers Fund registered deposits in the Institute until an amount equal to 100,000 EUR per depositor. 2)

(2). The Fund fully cover deposits





1) on index accounts pursuant to law,

2) on kapitalpensions accounts, pursuant to law,

3) on selvpensionerings accounts, pursuant to law,

4) on rate pension accounts pursuant to law,

5) on saving products accounts pursuant to law,

6) in the housing savings pursuant to law,

7) on the education savings accounts in accordance with the law,

8) on start-up accounts pursuant to law,

9) held at the lawyers ' client accounts,

10) administered in approved administrative departments under the Guardianship Act Chapter 5 or inheritance law §§ 54 and 61,

11) held on a probate account relating to the estate under the public switch, and

12) which are deposited under the escrow law.





(3). The Fund fully cover deposits of the purchase price for the real estate, which until 9 months from deployment is deposited in accordance with prior purchase agreement, and the deposits of the proceeds of mortgage loans in connection with equity real estate until 9 months after the inauguration of the amount, at the new building, however, until 2 years. The Fund's coverage is done, however, with deduction of obligations related to the mortgage loan case or the real estate trade, and any obligations that are not offset against the institution concerned in accordance with paragraph 1. It is a prerequisite that the property has been used principally in the course of trade or are not intended for mainly non-commercial use of the buyer or the seller of the property, respectively, the who has recorded mortgage loan.

§ 10. In the in clause 3 (1) (8). 2 and 3, referred to in paragraph 3, as well as institutions (1). 4, and section 4 of the mentioned branches of credit institutions and investment firms, which are connected to the mortgage Department or stockbroking company Department, covers Fund cash in the Institute until an amount equal to 100,000 euro per investor. 3)

§ 11. In the in section 3, paragraph 1, referred to institutes and branches, which is connected to the Fund under section 4, cover Fund losses, as investor suffered as a result of the fact that the Department is unable to return the securities belonging to the investor, and held, administered or managed by the Foundation, by up to the equivalent of 20,000 euro per investor. An investor can receive coverage up to a maximum of an amount equal to the value of the securities, which could not be returned by the Foundation.


(2). By securities within the meaning of this law in § 2 of the law on securities trading, etc. mentioned instruments.

§ 12. Requirements on the coverage of depositors and investors, without prejudice. section 9, paragraph 1, and articles 10 and 11 shall be determined after deduction of any obligations to the institution concerned, in accordance with article 3. However, paragraph 2.

(2). By the statement referred to in paragraph 1 may not be deducted from the obligations for the repayment of loans granted on the basis of covered bonds subject to section 16 (a) of the financial business Act.

§ 13. The Fund does not cover deposits, funds and securities belonging to the respective institution's directors and Board members or companies included in the consolidated with the institution concerned. The Fund's coverage also includes no depositors or investors, who owns 10 percent or more of stock-guarantee-or andelskapitalen. The Fund's coverage also does not include deposits, funds and securities belonging to any of the other in § 3, paragraph 1, the said institutions, foreign credit institutions as well as institutions which are connected to the Fund under section 4, subordinated capital deposits or deposits, funds and securities arising out of transactions in connection with which there has been a judgment in connection with money laundering.

§ 14. Where several persons are listed as holders of an account or a repository, each person is regarded as an independent investor or investor for his part in the calculation of the sections 9-11 specified limits.

§ 15. Depositors and investors must have information on the extent of coverage, etc. of the guarantee scheme, as an institution is connected. FSA sets out detailed provisions to this effect.

Chapter 6

Withdrawals from the Fund for depositors and investors

§ 16. Payouts from the Fund or Fund transfers of deposits and funds to accounts in other institutions shall take place as soon as possible and not later than three months after the reorganisation or bankruptcy. It is a condition of payment, to the case of duly verified claims. By cessation of obligation arises, the Fund's first 7 banking days after the notification of cessation of payments took place.

(2). The Danish financial supervisory authority may, at the request of the Fund extend it in paragraph 1 1. point, that period up to a maximum of 9 months.

(3). The Fund may not be invoked by the referred to in paragraphs 1 and 2 period refuse to pay cover to a depositor or investor who hasn't been able to in time to invoke his right to receive the amount paid.

(4). The Danish financial supervisory authority shall lay down detailed rules concerning the Fund's obligation to disclose information about an institution's receivership or bankruptcy, as well as on depositors ' and investors ' review of requirements for the Fund.

§ 17. The Fund arises, to the extent that it has provided coverage, in the depositor's or investor's claim against the Department, who has declared bankruptcy or has gone bankrupt.

Chapter 7

The Fund's management and administration

§ 18. The Fund is managed by a Board of eight members appointed by the Minister for economic and business affairs. Members and delegates for these shall be appointed for 3 years.

(2). The Board's Chairman and Vice Chairman must represent, respectively, the national financial and accounting expertise and legal expertise. 2 members must represent the institutions referred to in § 3 (1) (8). 1, 1 member shall represent the institutions referred to in § 3 (1) (8). 2, 1 member shall represent the institutions referred to in § 3 (1) (8). 3, and 2 members must represent depositors and investors.

(3). As Chairman or Vice-Chairman may not be chosen from persons involved in the management of or otherwise have such an affiliation with a company or an organisation that could arise opposing interests between these and the Fund.

(4). Decisions are made by ordinary majority vote. In cases where the votes are equal, the President's vote is decisive.

§ 19. The Fund's articles of Association and rules of procedure of the Board of Directors shall be authorised by the FSA.

(2). The articles of association must contain provisions for the affixing of the Fund's resources.

(3). In the Fund's statutes may provide for that processing in the Board of Directors of questions that only relates to a single Department, not participant Board members representing other sectors.

§ 20. The Board assumes the necessary assistance and shall deliver within 3 months after the expiry of a calendar year's accounts for the previous year with the report on the activities of the Fund to the Danish FSA.

§ 21. The costs of the fund administration shall be borne by the Fund.

(2). The Fund pays tax to the Danish FSA. The levy fixed in accordance with Chapter 22 of the financial business Act.

Chapter 7 (a)

Voluntary arrangements

§ 21 a. debtor departments may establish voluntary schemes cover depositors and investors in cases other than those referred to in article 1, paragraph 2, specified cases.

(2). A voluntary scheme, established in accordance with paragraph 1 shall be notified to the FSA. The notification must include at least the following:





1) the voluntary scheme name,

2) the voluntary system of address,

3) the names of the persons responsible for the management of the voluntary arrangement, and

4) information about what the voluntary scheme covers.





section 21 (b). The Danish financial supervisory authority may conclude cooperation agreements with a voluntary system as referred to in section 21 (a), paragraph 1. Cooperation agreements may contain description of practical cooperation, exchange of information and collection of takeover bids.

§ 21 c. Members of the voluntary system of management and staff and the voluntary system accountants must not improperly disclose or exploit confidential information to which they have become familiar with in the performance of their duties.

Chapter 8

Supervision

§ 22. The Danish financial supervisory authority supervises the Fund. The Danish financial supervisory authority and the Fund may, for the institutions and by depositors and investors require all information deemed necessary for the purpose of ensuring that the Act's rules, rules adopted pursuant to the law and the provisions of the Fund's articles of Association are complied with.

(2). sections 354 and 355 of the financial business Act shall apply mutatis mutandis to the Danish FSA supervision according to this law. As a party in relation to the Danish financial supervisory authority is considered alone Fund.

Chapter 8A

§ 22 a. Members of the Fund's Board, accountants, executives, and other employees may not improperly disclose or exploit confidential information in the performance of their duties have been familiar with.

Chapter 9

Criminal provisions

§ 23. As higher punishment not inflicted after the other legislation, is punishable by a fine, the





1) shall give false or misleading information or conceals information for the notification, statement or payment of claims or coverage

2) fails to provide the supervision or the Fund pursuant to section 22 of the required information or otherwise shall give false or misleading information for the purpose of control of the Fund.





(2). In the same way be punished an institution that fails to comply with the obligations incumbent upon it as connected to the Fund.

(3). That can be imposed on companies, etc. (legal persons) criminal liability in accordance with the provisions of the criminal code 5. Chapter.

§ 23 a. Violation of the provisions of §§ 21 (c) and 22 (a) is punishable by a fine, as higher punishment not inflicted after the Penal Code.

Chapter 10

Entry-into-force provisions, etc.

§ 24. The Minister for economic and Business Affairs establishes the time of the entry into force of the Act, see. However, paragraph 2 and 4.4) at the same time repealed Act No. 367 of 14. June 1995 on a depositor guarantee fund.

(2). The Minister for economic and business affairs, after negotiation with the tax Minister sets the time of the entry into force of section 15.8)

(3). Equation section 7 (B) as amended by this Act, section 25 shall take effect for the amount the Fund pays out from and with it pursuant to paragraph 2 provided for time.

Paragraph 4-6. (Omitted).

§ 25. Of the law on the taxation of income tax to the State (the tax assessment Act), see. lovbekendtgørelse nr. 819 of 3. November 1997, as last amended by section 1 of Act No. 133 of 25. February 1998, section 7 (B) shall be replaced by the following:



» § 7 b. amount as guarantee fund for depositors and investors will pay for an institution as laid down in the law on a guarantee fund for depositors and investors section 3 for total or partial settlement of an accounting under the balance in connection with the transfer of assets and liabilities from one Department to another Department, shall not be counted as taxable income. The portion of the balance, which is covered by a subsidy or a guarantee from the guarantee fund for depositors and investors, can then not considered part of the acquiring institution's acquisition cost of the acquired assets.

(2). If the guarantee fund for depositors and investors have paid amounts covered by paragraph 1 or guaranteed, which may lead to payment of the amounts covered by paragraph 1, and an awarding institution covered by paragraph 1 begins new activity, a deficit of earlier income year not transferred to deductions from taxable income for that year or later income year, just as the deficit for that income year cannot be transferred to deductions from taxable income for later income year. '


section 26. The law does not apply to the Faroe Islands and Greenland. The law can, with the exception of section 25 by Royal Decree is implemented in these regions with the variances, as the special Faroese and Greenlandic conditions warrant.




Act No. 347 of 17. date of entry into force in May 2000, contains the following provisions:



§ 2

The law shall enter into force on the 1. June 2000.

§ 3

The law does not apply to the Faroe Islands and Greenland but may by Royal Decree is implemented in these regions with the deviations to the special Faroese and Greenlandic conditions warrant.




Act No. 428 of 6. June 2002, includes the following entry-into-force provisions:



§ 19

(1). The law shall enter into force on the 1. July 2002, see. However, paragraphs 2 and 3.

Paragraphs 2 to 4. (Omitted).

§ 20

(Omitted).

§ 21

(1). Except for section 1, nr. 13, the law does not apply to Greenland and the Faroe Islands, but may by Royal Decree is implemented in these regions with the variances, as the special Greenlandic and Faroese circumstances so dictate, without prejudice. However, paragraph 2.

(2). (Omitted).




Act No. 453 of 10. June 2003, includes the following entry-into-force provisions:



§ 375. The law shall enter into force on the 1. January 2004, see. However, paragraphs 2 and 3.

Paragraphs 2 to 5. (Omitted).

§ 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.

Paragraphs 2 to 4. (Omitted).




Act No. 516 of 6. June 2007 includes the following entry-into-force provisions:



§ 9

The law shall enter into force on the 1. January 2008.

§ 10

Paragraphs 1 and 2. (Omitted).

(3). Act §§ 3-5, § 6, nr. 1 and 3-7, and sections 7 and 8 shall apply where the death occurs after the entry into force of the Act

(4). (Omitted)

§ 11

The law does not apply to the Faroe Islands and Greenland. sections 1-3 and 5 may, by Royal Decree is implemented in these regions with the variances, as the special Faroese and Greenlandic conditions warrant.




Act No. 576 of 6. June 2007 includes the following entry-into-force provisions:



§ 12

(1). The law shall enter into force on the 1. July 2007, see. However, paragraphs 2 and 3.

Paragraph 2-3. (Omitted).

section 13

(Omitted).

§ 14

(1). The law does not apply to the Faroe Islands and Greenland, without prejudice. However, paragraphs 2 and 3.

(2). § § 1-5 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. 6)

(3). (Omitted).




Act No. 338 of 1. May 2009 contains the following entry into force and transitional provisions:



§ 4

(1). (Omitted).

(2). § 1 shall enter into force on the 30. June 2009, see. However, paragraph 3.

(3). section 16(1), 1-3, of the law on a guarantee fund for depositors and investors, as amended by this Act, section 1, no. 8-10, will enter into force on 31 December 1996. December 2010.

(4). In the period from 30. June 2009 to 30 June. September 2010 represents the amounts referred to in section 9, paragraph 1, and article 10, paragraph 1, of the law on a guarantee fund for depositors and investors, as amended by this Act, section 1, no. 3, however, only an amount equal to 50,000 euros.

(5). The Bill can be confirmed immediately after its adoption.

§ 5

paragraph 1 shall not apply to the Faroe Islands and Greenland but may by Royal Decree in whole or in part is implemented in these regions with the variances, as the special Faroese and Greenlandic conditions warrant.
Economic and business affairs, the 20. August 2009 Lene Espersen/Ulrik Nødgaard Official notes 1) Act contains provisions transposing a European Parliament and Council Directive 94/19/EC of 30. May 1994 on deposit-guarantee schemes (Official Journal 1994 no. L 135, p. 5), the European Parliament and of the Council Directive 97/9/EC of 3. March 1997 on investor-compensation schemes (Official Journal of the European communities 1997 nr. L 84, p. 22) and of the European Parliament and of the Council directive 2009/14/EC of 11. March 2009 amending Directive 94/19/EC on deposit-guarantee schemes as regards the coverage level and the payout delay, (the official journal of the European Union 2009 nr. L 68, p. 3).

2) during the period from 30 June 2006. June 2009 to 30 June. September 2010 represents the amount referred to in section 9, paragraph 1, however, only an amount equal to 50,000 euro, see. section 4, paragraph 4, of law No. 338 of 1. May 2009.

3) during the period from 30 June 2006. June 2009 to 30 June. September 2010 represents the amount referred to in section 10, however, only an amount equal to 50,000 euro, see. section 4, paragraph 4, of law No. 338 of 1. May 2009.

4) law on a guarantee fund for depositors and investors was put into effect on 15 October. October 1998, in accordance with article 3. Executive Order No. 723 of 9. October 1998.

5) section 25 was put into effect on 15 October. August 1999, see. Executive Order No. 652 of 12. August 1999.

6) section 14 (2) of law No. 576 of 6. June 2007 was amended by section 12 of Act No. 517 of 17. June 2008.