Decree On Competence Requirements For Persons Providing Advice About Certain Investment Products

Original Language Title: Bekendtgørelse om kompetencekrav til personer, der yder rådgivning om visse investeringsprodukter

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Table of Contents

Appendix 1

Completion of the skills requirements for persons providing advice on certain investment products

Purline of section 43 (2). 4, and Section 373 (3). 4, in the law of financial activities, cf. Law Order no. 342 of 8. April 2011 :

Scope of application

§ 1. The notice shall apply to financial institutions and fund brokers which provide investment advice on investment products or advice on pools or portfolios of investment products for retail customers, cf. Section 4 (4). 1, no. 3, in the announcement of investor protection in the field of securities trading, here in the country, including through the branch establishment. The notice shall apply by analoging to investment advisers, cf. § 343 A, in the law of financial activities.

Paragraph 2. The Bekendom is not applicable to advice on mortgage bonds, in particular covered mortgage bonds (SDRO ' s), in particular covered debt securities (SDO) or pan-mail, where this is done by association with and as a prerequisite for execution ; of the recording of your customers, of incorporation or reorganization of a loan with a mortgage on real estate.

§ 2. For the purposes of an investment product,

1) instruments, cf. Annex 5 of the Act of Financial Regulation,

2) deposits in financial institutions where a return depends on the evolution of one or more underlying assets ;

3) guarantee certificates,

4) cooperatits and

5) Panting letters.

Competent requirements

§ 3. Companies covered by this notice shall ensure that the company ' s employees who provide investment advice or advice on portfolios or powders of investment products are in a position to provide sound advice, cf. paragraph 2.

Paragraph 2. The staff shall have sufficient skills in the following areas :

1) Relevant legislation.

2) Investment products.

3) Financially understanding.

Documentation

§ 4. Businesses must prepare a business process for systematic training courses that ensure that all company employees who provide investment advice on investment products are covered by Section 4 (2). 2 or 3, in the notice of the risk-taking of investment products or advice on pooled or portfolios of investment products, have the necessary skills, cf. § 3. Companies must ensure that these employees have gone through this training course before they start giving advice.

Paragraph 2. In the case of recruitment in a company subject to this notice, the applicant has undergone a training course in accordance with the procedure laid down in the Commission. paragraph However, in another company covered by this notice, advice may provide advice on equivalent products without having undergone the training cycle of the new establishment.

§ 5. Companies must ensure that the company employees who provide investment advice on investment products are covered by Article 4 (2). 4, in the notice of the risk-taking of investment products, has passed a test approved by the Financial supervision, cf. Section 6, which documents that the staff possesses the necessary skills for investment products that they advise, cf. Section 3, paragraph 3. 2, no. Two, before they start giving advice. 3 years apart, the staff shall have to have a new test to demonstrate that the staff continue to possess the necessary skills, cf. Section 3, paragraph 3. 2, no. 2.

§ 6. The Financial Supervisory Board shall approve the following advice from the Education Committee, cf. paragraph 3, and the professional committee, cf. paragraph 5, skill requirements and frameworks for testing, cf.. in Annex 1, for providers wishing to provide a test, cf. § 5.

Paragraph 2. An application for approval of the skill requirements and a framework for testing, cf. paragraph 1, must account for all the conditions set out in Annex 1.

Paragraph 3. The Financial Supervisory Board shall appoint a training committee composed of members from each of the following organizations :

1) The financial union.

2) The financial council.

3) The financial sector of the financial sector.

4) The Consumer Council.

5) The Danish Fondssorority Association.

6) Dansk Actionsorority.

Paragraph 4. The SEC is the chairman of the Education Committee.

Paragraph 5. Financial supervision shall be appointed by the organisations referred to in paragraph 1. 3, a specialist committee composed of 1 President and 2 members who are generally recognised experts in the area of investment.

Paragraph 6. The Finance-sighted secretariats will serve the committees, cf. paragraph 3 and 5.

Paragraph 7. The sample provider shall state annually on the Financial supervision which changes to the approved skills requirements carried out by the Financial supervision as the provider. If the test is no longer satisfying the requirements of Annex 1, the Financial supervision may include the approval.

§ 7. The SEC is conducting a register of employees who have passed a test approved in accordance with section 6.

Supervision and penalty provisions

§ 8. The financial supervision may provide an injunction on the correction of matters that are contrary to section 3, section 4 (4). 1, and Section 5, in this notice. Failure to comply with injuns can be punished by fine.

Paragraph 2. Companies can be imposed on companies, etc. (legal persons) punishable by the rules of the penal code 5. Chapter.

Entry into force and transitional provisions

§ 9. The announcement shall enter into force on 1. August 2011, cf. however, paragraph 1 2.

Paragraph 2. However, 5 shall not enter into force on 1. December 2011.

Paragraph 3. Hire employed by a company covered by this notice before 1. However, August 2011 may provide investment advice on investment products covered by section 4 (4). 2 or 3, in the notice of the risk-taking of investment products or advice on pools or portfolios of investment products up to 1. In August 2012, without having undergone a training course, cf. § 4.

Paragraph 4. Hire employed by a company covered by this notice before 1. However, in December 2011, investment advice on investment products will be covered by section 4 (4). 4, in the notice of the risk-taking of investment products up to 1. In December 2012, without having submitted test, cf. § 5.

Paragraph 5. Notwithstanding paragraph 1 1 may, however, be able to be given the Financial supervision from 1. May 2011 approve the skill requirements and frameworks for testing, cf. Section 6 (2). 1.

The Ministry of Economic and Business, the 15th. April 2011

Brian Mikkelsen

/ Hans High


Appendix 1

Criteria for testing in accordance with. § 6.

1. In the assessment of the competence requirements for an operator ' s trial, the emphasis will be placed on the test to ensure that the staff has the following knowledge, skills and competencies relating to products to which the employee offers ; Customers. The employee

a) have knowledge of the theory, method and practice of investment counselling in the field of securities and products in relation to the structure and structure of the product, how the product is priced and the conditions affecting the price of the product ; investment horizons, the costs of acquisition, possession and sale of products, the financial obligations resulting from the product for investor and the risks associated with the product ;

b) shall be able to understand and reflect on theories, methods and practices,

c) they must be able to use methods and tools and skills which are linked to investment advice in the securities field ;

d) be able to assess the theoretical and practical issues related to investment advice in the securities field, as well as reasons, and choose appropriate solution models, including reasons why a specific product within this type of ; products would be suitability or not appropriate for a specific customer, in the light of his risk-profile, other portfolio, product knowledge and investment horizons ;

(e) can account for professional issues and solution models for investment advice in the securities field and

(f) be able to handle complex situations of investment advice in the securities field.

2. The test provider ' s powers of competence to be tested in the framework of a multiple choise test shall be subject to the facts calculated in the light of the sample. 1 for each product category to which the sample is to be used.

3. The test provider ' s competence requirement shall be accompanied by a statement of an expert in the Finance ' s approval in the Finance Board, accompanied by a statement of an expert on investment certifying that the provider ' s competence requirements meet the criteria in point. One and two.

Preparation of the test

4. The sample provider may only use a sample which has been presented to a general recognised expert in the investment, certifying that the sample satisfies the provider ' s competence requirements, cf. Act. 2.

5. No later than two months before holding the first test, the sample provider shall publish the skill requirements and an example of the sample being made available.

The framework for holding the test

6. A sample provider shall not be allowed to test employees in undertakings to which the provider is conjoined, cf. § § 5 a and 5 b, in the Act of Financial Company.

7. An employee who has not passed the test must first go up to the test 1 year after the last attempt. The test provider shall, together with any other test operators, establish a register of employees who have taken the test without passing the test.

8. The provider shall also demonstrate that the test is held under a sound framework. The emphasis will be on the fact that the holding of the sample is carried out in conditions that ensure that the employee is unable to receive assistance during the response to the test.

9. The provider shall retain evidence of passed test and immediately after the test has passed, extradite this to the SEC, the employee and the employee's employer, unless special circumstances are opposed to it.