Notice Of Statement Of Capital Base

Original Language Title: Bekendtgørelse om opgørelse af basiskapital

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Overview (table of contents)



Title I



General provisions





Chapter 1



Scope and definitions





Section II



Special rules applicable to financial institutions, mortgage companies, stock brokerage firms and investment management companies





Chapter 2



Statement of capital base at financial institutions, mortgage companies, stock brokerage firms and investment management companies





Chapter 3



Statement of actual core capital before deduction of financial institutions, mortgage companies, stock brokerage firms and investment management companies





Chapter 4



Inventory of hybrid core capital in financial institutions, mortgage companies, stock brokerage firms and investment management companies





Chapter 5



Statement of additional capital before deduction of financial institutions, mortgage companies, stock brokerage firms and investment management companies





Chapter 6



Deduction of capital in financial institutions, mortgage companies, stock brokerage firms and investment management companies





Title III



Special rules applicable to insurance companies and lateral pension funds





Chapter 7



Statement of the basic capital of insurance companies and lateral pension funds





Chapter 8



Statement of core capital after deduction of insurance companies and lateral pension funds





Chapter 9



Statement of additional capital in the insurance companies and lateral pension funds





Title IV



Date of entry into force and transitional provisions





Chapter 10



Penal provision





Chapter 11



Entry into force and transitional provisions



The full text of the notice on calculation of basiskapital1)

Pursuant to section 13, paragraph 4, article 124, paragraph 9, section 128, paragraph 2, section 128 (a), section 148, no. 5 and § 373, paragraph 4, of the financial business Act, see. lovbekendtgørelse nr. 705 of 25. June 2012, fixed: title I General provisions Chapter 1 scope and definitions article 1. The notice applies to financial companies, see. § 5 (1) (8). 1, in the financial business Act, as well as enterprises subject to paragraphs 2 to 5.

(2). For financial holding companies, the provisions laid down in titles I, II and IV shall apply.

(3). For groups, where pursuant to section 170, paragraph 1-4, in the financial business Act must be carried out in a consolidated statement, the provisions of titles I, II and IV shall apply.

(4). For subgroups, where pursuant to section 171, paragraph 2, article 172, paragraph 2, article 173, paragraph 2, or section 174, paragraph 2, of the law on financial activities must be carried out in a consolidated statement, the provisions of titles I, II and IV shall apply.

(5). For operators of regulated markets resident in this country, in another country within the European Union or in a country which has entered into an agreement with the Union in the financial sphere, which are allowed under section 5 (1) (8). 20, in the financial business Act to operate multilateral trading facilities, the provisions of titles I, II and IV shall apply with the derogations which relationship requires.

§ 2. For the purposes of this order: 1) A Securitisation transaction or arrangement, whereby the risk associated with an exposure or a pool of exposures is divided into tranches, and which is characterized by a) payments in connection with the transaction or scheme depends on the evolution of the exposure or a pool of exposures, and b) ranking of tranches determines the allocation of losses in the transaction or scheme's life span.

2) issuing process initial interest basis: The interest rate basis, as it has been agreed that the issue be remunerated with from the time they were issued. Used term corresponding time to finance the increase. Interest amount can be either fixed-rate or variable-rate.

3) interest rate increase comes interest basis: The interest rate basis, as it has been agreed that the issue be remunerated with after interest-rate increase. Used term corresponding time to finance the increase. Interest amount can be either fixed-rate or variable-rate.

4) A unit hybrid core capital: One capital certificate issued for the purposes of recognition as a hybrid core capital in the issuer's capital base.

5) Conversion rate: the number of shares, the guarantor or the cooperative proves as a unit hybrid core capital can be converted to.

6) Conversion rate at the time of issue: the number of shares, guarantor or cooperative evidence, as the value of a unit hybrid core capital if they meet at the time of issue.

7) distributable reserves: The amount specified in section 180 (2) of the Danish companies act as free reserves.

8) guarantee capital: Capital which is paid up in insurance companies and lateral pension funds, and where the capital accounting is recognised as equity.

9) Guarantee capital: Capital, as guarantors have deposited in a savings bank, and in which capital accounting is recognised as equity.

10) Cooperative capital Capital as shareholders have deposited in a cooperative, and where the capital accounting is recognised as equity.

11) Redemption: the Foundation's Money, mortgage credit Foundation, stockbroking company and investment management company's redemption or purchase of its own shares, guarantor or cooperative evidence.

12) Capital requirements: capital requirements, for the purposes of this Ordinance, as capital requirement under section 127 (1) of the financial business Act.

Title II specific rules applicable to financial institutions, mortgage companies, stock brokerage firms and investment management companies Chapter 2 Inventory of capital base at financial institutions, mortgage companies, stock brokerage firms and investment management companies, § 3. Basic capital in financial institutions, mortgage companies, stock brokerage firms and investment management companies is calculated as core capital, see. paragraph 2, with the addition of additional capital after the deduction under section 31.

(2). Core capital is calculated as the sum of actual core capital, see. § 4, and hybrid core capital, see. § 10, which can be included in core capital, see. § 12, after deductions pursuant to section 31.

Chapter 3 the estimation of actual core capital before deduction of financial institutions, mortgage companies, stock brokerage firms and investment management companies, § 4. Real core capital in financial institutions, mortgage companies, stock brokerage firms and investment management companies consists of 1) paid up share capital, that meets the requirements of sections 6 and 7, 2) paid up capital, the guarantor who meets the requirements set out in §§ 5-7, 3) paid cooperative capital, which complies with the requirements of §§ 5-7, 4) share premium accounts, 5) reserves, 6) bottom savings bank reserve, see. § 211, in the financial business Act, 7) transferred over or deficit, 8) 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 24 of the law on mortgages and mortgage bonds, etc., which may not get to payout, 9) Base Fund reserve of mortgage companies, and 10) year current profits minus expected dividend and other predictable expenses, provided the amount is confirmed by the Bank, mortgage Foundation, stockbroking firm or investment management company's external auditor, see. sections 8 and 9.

(2). The real core capital shall 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.

(3). A financial institution, mortgage lender, stockbroking company and investment management company that has made a securitisation, see. § 2 (1) (8). 1, must not referred to in paragraph 1, no. 5-7, 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.

§ 5. Guarantor-and cooperative capital can be included in the core capital if capital can be decreased when save-and andelskassen have deficits that are not covered by the free reserves, see. § 2 (1) (8). 7. The rules applicable to public limited-liability companies concerning the reduction of share capital shall mutatis mutandis apply to the reduction of the guarantor-and cooperative capital.

(2). Guarantor-and cooperative capital can be included in the core capital, whose capital is subordinated to those of all capital, liquidations and bankruptcy.

(3). Guarantor-and cooperative capital can be included in the core capital, if capital is not associated with warranties or promises, who legal or economic capital provides better than in paragraphs 1 and 2.

§ 6. Stock, guarantor and cooperative capital can be included in the core capital, where the capital is not divided into classes with 1) various rights, if the Bank, mortgage credit Foundation, stockbroking company and investment management company have deficits that are not covered by the free reserves, and 2) various rights, liquidations and bankruptcy.


(2). If the Bank, mortgage credit Foundation, stockbroking company and investment management company will take into account stock, guarantor and cooperative capital into the real core capital for capital divided into classes, that any right to receive a higher rate of return or yield for certain classes must be limited to a predetermined factor of return or yield, as the class that receives the lowest yield or rate of return , receive, see. However, section 7.

§ 7. Stock, guarantor and cooperative capital can be included in the core capital, provided that the holder of the capital has not been made a specific rate of return or yield.

(2). Bank, mortgage credit Foundation, stockbroking company and investment management company may, however, notwithstanding the provisions of paragraph 1, make public a return or dividend policy, if the policy reflects the Board's plans for the return or yield on the basis of the Foundation's money, mortgage credit Foundation, the company's stockbroking and investment management company's financial position, and it is clear from the policy that the plans may be waived.

(3). Notwithstanding paragraph 1, save and andelskassers statutes provide for a maximum rate of return or yield.

(4). Bank, mortgage credit Foundation, stockbroking company and investment management company's top authority shall determine annually the amount of remuneration or proceeds on the basis of this year's profits and free reserves before payment of interest on capital guarantee. Rate of return or yield may not be set higher than the proposed or approved by the Board of Directors.

(5). In cases where there is no interest or dividends paid to holders of the stock, the guarantor-and andelskapitalen, the lack of payment must not be replaced by other services to the holder of the stock, the guarantor-or andelskapitalen.

Special rules for redemption of stock, guarantor and cooperative capital



§ 8. Redemption of stock, guarantor and cooperative capital may only be carried out when the Bank, mortgage credit Foundation, stockbroking company and investment management company has adequate capital after redemption and in the foreseeable future then, so the financial and solvency situation remains reassuring and once obtained a prior authorisation according to §§ 9 or 10 from the Danish financial supervisory authority, without prejudice to article. However, paragraph 4.

(2). The holder of the stock, the guarantor-and andelskapitalen must not, in addition to the rules in force in the Danish companies Act, be entitled to redemption, and the Bank, mortgage credit Foundation, stockbroking company and investment management company do not give the holder an anticipation of redemption at any given time.

(3). Decision on the redemption of shares, guarantor and cooperative capital may not be published before the Bank, mortgage credit Foundation, stockbroking company and investment management company has obtained permission from the Danish financial supervisory authority pursuant to paragraph 1.

(4). Banks, building societies, stockbroking firms and investment management companies can without permission in accordance with §§ 9 or 10 acquire own shares for the purpose of resale, provided that the holding of own shares after the acquisition does not exceed 3 per cent of the total issued share capital.

§ 9. Permission for redemption of stock, guarantor and cooperative capital can be granted by the Danish financial supervisory authority with a view to amending in the Foundation's money, mortgage Foundation, stockbroking company and investment management company's capital structure or for the purpose of resale.

(2). Application to the FSA about redemption in accordance with paragraph 1 shall be accompanied by the following, see. However, paragraph 3:1) an explanation of why the Bank, mortgage credit Foundation, stockbroking company and investment management company will redeem stock, guarantor or cooperative capital.

2) Solvency data including the level and composition of core capital before and after the redemption as well as a confirmation that the Bank, mortgage credit Foundation, stockbroking company and investment management company will continue to comply with the prudential requirements provided for in legislation or in regulations issued in implementation thereof after redemption.

3) an explanation of the liquidity situation, including that the Bank, mortgage credit Foundation, stockbroking company and investment management company continues to meet the regulatory and supervisory requirements for redemption.

4) A statement on the expected development for at least 3 years in the conditions described under nr. 2 and 3, based on the Foundation's money, mortgage credit Foundation, stockbroking company and investment management company's business plan and the expected developments in financial companies within the same sector.

5) an assessment of the risks which the Bank, mortgage credit Foundation, stockbroking company and investment management company is or can be exposed against, and an assessment of whether the level of capital base ensures that these risks are covered, including stress testing of the principal risks, which shows the potential losses in different scenarios.

6 the Foundation's) money, mortgage Foundation, stockbroking company and investment management company's recent solvency requirement statement.

(3). The Danish financial supervisory authority may require additional information, if necessary for processing of the application.

§ 10. Savings and cooperative banks may apply to the FSA for authorization to the redemption of the guarantor-and cooperative capital in order to continuously meet the wishes of holders of the guarantor-and cooperative capital, if redemption is within an overall net framework of up to the lesser of the following amounts: 1) 1/3 of the total guarantee and cooperative capital 2) 10 per cent of the core capital (2). Authorisation in accordance with paragraph 1 may be granted for a period of up to one year.

(3). In section 9, paragraph 2, no. 2 and 6, the said information shall be attached to the application for permission under paragraph 1.

(4). The Danish financial supervisory authority may require additional information, if necessary for processing of the application.

Special rules for the recognition of the year's continuous surplus in the real core capital



§ 11. Use the Bank, mortgage credit Foundation, stockbroking company and investment management company the possibility of recognition of the year's continuous surplus in the real core capital, see. § 4 (1) (8). 10, the amount to be confirmed by the external auditors.

(2). In the situation referred to in paragraph 1 to the external auditors in audit report provide information on the work carried out and on the Foundation's money, mortgage credit Foundation, stockbroking firm or investment management company's capital ratio before and after their capture of the year's current surplus shots.

(3). And loss account of the year's current profit for the purpose of recognition of this in the core capital shall be carried out on the basis of interim accounts reported to the FSA, in which period the accounts in surplus.

§ 12. The external auditors are to be in relation to confirmation under section 11, paragraphs 1 and 2:1) Ensure that the figures behind the calculation of current year surplus stems from the company's accounting system.

2) Ensure that this year's ongoing profits are deducted from any kind of tax and decided extraordinary dividends.

3) seek the Executive Board's confirmation that the period financial statements that are the basis of the outturn account of the year's current profits, in compliance with the principles laid down in the financial business Act and Decree on the financial reports of credit institutions and stockbroking companies and others, as well as comply with the company's accounting practices.

4) ensure that the Executive Board has outlined that significant deviations from the company's budget and prior periods is the result of specific events such as URf.eks. changes to the business profile and business volume.

(2). The external auditors in the audit report must state whether it referred to in paragraph 1 performed work has given rise to any comments.

(3). The minutes shall be drawn up by the external auditors, must be signed by these before the Bank, mortgage credit Foundation, stockbroking firm or investment management company can recognise this year's continuous surplus in core capital.

Chapter 4 Statement of hybrid core capital in financial institutions, mortgage companies, stock brokerage firms and investment management companies § 13. Hybrid core capital, see. (2) may be included in the core capital of banks, building societies, stockbroking firms and investment management companies with the constraints resulting from § 15, when the capital lives up to the requirements of section 14 and § § 17-25.

(2). By hybrid core capital in financial institutions, mortgage companies, stock brokerage firms and investment management companies shall mean capital, which meet the following conditions: 1) the hybrid core capital must be paid into the Bank, mortgage credit Foundation, stockbroking firm or investment management company.

2) A pre-specified time for the hybrid core capital decay may occur no earlier than 30 years after the deposit and may not be combined with incentives for repayment of the basic regulation. § 21.

3) Unless there has been previously fixed a date for the hybrid core capital decay 30 years or later after the issuance, must the hybrid core capital only fall if the Bank, mortgage credit Foundation, stockbroking firm or investment management company shall enter into liquidation or is declared bankrupt.

4) agreed-upon incentives for repayment must be moderate and must occur no earlier than 10 years after the deposit, without prejudice. sections 21-23.


5) the lender's claims against the Bank, mortgage credit Foundation, stockbroking firm or investment management company must be subordinated to those of all debt, including equity loan.

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 companies mentioned in article 181, paragraph 1, of the law on financial business 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 and payment of interest due shall be canceled without prejudice. However, section 14, if a Bank, mortgage credit Institute), stockbroking firm or investment management company does not meet the capital requirement in § 127, in the financial business Act, b) Bank, mortgage credit Foundation, stockbroking firm or investment management company deems it necessary to maintain the company's financial health, or c) the FSA deems it necessary in the interests of the Foundation's money, mortgage credit Foundation, stockbroking firm or investment management company's financial and solvency situation.

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) Bank, mortgage credit Foundation, stockbroking company and investment management company should be able to write down the hybrid core capital, see. However, §§ 24-26, if the capital adequacy ratio or the core‐capital ratio falls below predetermined thresholds. The threshold for capital adequacy ratio cannot be set lower than the Foundation's money, mortgage credit Foundation, stockbroking company and investment management company's solvency requirements, and the threshold for the core‐capital ratio cannot be set lower than 5 percent.

10) It must be stated in the agreement on the hybrid core capital, the agreement cannot be changed with the effect that the capital cannot be counted as hybrid core capital without FSA approval.

§ 14. The agreement on hybrid core capital may, notwithstanding section 13, paragraph 2, no. 7, contain provisions to the effect that the interest payments that would otherwise be eliminated under section 13, paragraph 2, no. 7 (a) and (b) shall be replaced by the stock, guarantor or cooperative capital. However, in this case, it should be apparent from the agreement on hybrid core capital, to: 1) Replacement of cancellations of interest payments with stock, guarantor or cooperative capital presupposes that the FSA has not rejected the payment of consideration for that payment can prevent a recapitalisation.

2) Compensation of cancellations of interest payments with stock, guarantor or cooperative capital may not take place if the conditions for being able to write down the hybrid core capital, see. section 13, paragraph 2, no. 9 have been met.

3) If conditions make it impossible to replace of lapsed interest payments with stock, guarantor or cooperative capital as provided in the agreement, the vendor's claims for compensation by fallen interest payments fall.

§ 15. Hybrid core capital in financial institutions, mortgage companies, stock brokerage firms and investment management companies, see. sections 13 and 14, may constitute up to 50 percent of core capital after deduction under section 31 (9) of the basic regulation. However, paragraph 4, if the agreement on hybrid core capital meets the following requirements: 1) the hybrid core capital will be converted to stock, guarantor or cooperative capital if the Bank, mortgage credit Foundation, stockbroking firm or investment management company does not meet the capital requirement in § 127, in the financial business act or otherwise in need.

2) the hybrid core capital can on FSA initiative will be converted to stock, guarantor or cooperative capital, if the FSA believes that there is a risk that the nearby Bank, mortgage credit Foundation, stockbroking firm or investment management company does not comply with the requirement in section 127 of the law on financial business.

3) Agreement does not contain incentives for repayment.

4) Agreement does not contain the terms on which the debt is due at a pre-determined time.

(2). Hybrid core capital in financial institutions, mortgage companies, stock brokerage firms and investment management companies, see. sections 13 and 14, which do not comply with the requirement referred to in paragraph 1, no. 1 and 2, may not exceed 35 per cent of core capital after deduction under section 31 (9) of the basic regulation. However, paragraph 4, if the agreement contains no incentives for repayment or conditions on which the debt is due at a pre-determined time.

(3). Hybrid core capital, see. sections 13 and 14, may not exceed 15 per cent of core capital after deduction under section 31 (9) of the basic regulation. However, paragraph 4, if the agreement contains moderate incentives for repayment or contains conditions the debt due on a pre-determined time.

(4). Hybrid core capital covered by paragraphs 1 to 3, taken together may not exceed 50% of core capital after deduction under section 31, paragraph 9, and hybrid core capital covered by paragraphs 2 and 3, taken together may not exceed 35 per cent of core capital after deduction under section 31, paragraph 9.

(5). The Danish financial supervisory authority may in exceptional circumstances authorise the limits laid down in paragraphs 1 to 4 may be temporarily exceeded.

(6). The provisions of paragraphs 1 and 2, according to which the agreements at the level of debt may not include incentives for repayment does not include hybrid core capital issued pursuant to the law on state capital deposits in credit institutions, where agreements in connection with debt agreement contains terms relating to interest rate increases, provided that any such interest increases solely be made conditional upon the evolution of dividend payouts and conditions about increases in redemption price and provided that such increases do not represent more than 5% from the sixth year and 10 per cent from the seventh year.

§ 16. In financial institutions, mortgage companies, stock brokerage firms or investment management companies governed by corporate law agrees the hybrid core capital, which contains conditions of conversion, including hybrid core capital subject to section 15, paragraph 1, should the general Assembly decide to conclude the agreement on the hybrid core capital, or by provision in the statutes authorize the Board to conclude the agreement on the hybrid core capital and at the same time authorise the Board to make the consequential increase of the capital to use for the conversion. The latter authority must be provided prior to the conclusion of the agreement on hybrid core capital in order that this can be included under section 15 (1). Conditions on conversion can only be exploited as long as the issuer is a company incorporated under the section 1.

(2). For the general Assembly's decision to conclude an agreement on hybrid core capital, which contains conditions of conversion, including hybrid core capital within the scope of section 15 (1) of the financial institutions, mortgage companies, stock brokerage firms or investment management companies governed by the companies Act, the provisions of section 167, paragraph 1 and 2, and § 168 of the Danish companies Act apply. section 167 (3) of the companies act shall apply mutatis mutandis, with the general Assembly's decision deals with the legal situation in that conversion is done on the initiative of the issuer, or if the general meeting decide to conclude an agreement to issue hybrid core capital within the scope of section 15 (1).

(3). The General Meeting authorised the Board to conclude an agreement on hybrid core capital pursuant to paragraph 1, contain conditions relating to conversion, including hybrid core capital subject to section 15, paragraph 1, and the consequential increase of the capital to use for the conversion, provided for one or more periods of up to five years at a time. The time limit applies only for the conclusion of the agreement on the hybrid core capital and not for any subsequent capital increase as a result of the conversion.

(4). By the authority in accordance with paragraph 1 must indicate the following: 1 the statutes) date of the termination of the period referred to in paragraph 3.

2) the maximum amount by which the Board of Directors may increase the capital.

3) Provisions relating to the conditions referred to in § 158, nr. 5, 6, and 9-11, in corporate law.

(5). For banks, building societies, stockbroking firms or investment management companies governed by companies act the Board of Directors of the authority in accordance with paragraph 1, decide on the issuance of hybrid core capital. § 169, paragraph 2 of the companies act shall apply to the Board's decision here. The Board must decide on the recipient's legal position, if the situation referred to in section 169 (3) of the companies act to be implemented before the conversion takes place on the initiative of the issuer. § 169, (4) and (5) and sections 170 and 171, in the Danish companies act shall apply to the Board's decision after 1. PT.

(6). For banks, building societies, stockbroking firms or investment management companies governed by corporate law, see § § 172-177, in corporate law for registration, etc., apply to the general Assembly's decision in accordance with paragraph 1.

(7). The General Assembly's authority pursuant to paragraph 1 shall lapse if the issue no longer is a company incorporated under the section 1.

(8). A company ceases to be subject to § 1, hybrid core capital, in common with other foreign capital, is still not recognised as a part of the company's share capital.

Redemption of hybrid core capital at the Bank, mortgage credit Foundation, stockbroking company and investment management company's initiative




§ 17. It should be apparent from the agreement on the hybrid core capital that it alone must be redeemed at the Foundation's money, mortgage credit Foundation, stockbroking firm or investment management company's initiative with the FSA authorisation and not earlier than five years after the date of deposit.

(2). By derogation from paragraph 1, it may be apparent from the agreement, that hybrid core capital with FSA authorisation can be redeemed earlier than five years after the date of the deposit in the event of a change in the tax treatment of solvency or the instrument in question.

(3). By derogation from paragraph 1, it may be apparent from the agreement, that hybrid core capital with FSA authorisation can be redeemed earlier than five years after the deposit, where it is replaced by the paid up capital of at least the same level of quality.

(4). By derogation from paragraph 1, it may be apparent from the agreement, that hybrid core capital, issued pursuant to the law on state capital deposits in credit institutions, in accordance with the agreements on the State capital deposits redeemable with FSA authorisation no earlier than three years after the deposit shall be included in the base capital, where core capital after the settlement is at least 12 per cent.

(5). By derogation from paragraph 1, it may be apparent from the agreement that the Bank, mortgage credit Foundation, stockbroking firm or investment management company with the FSA authorisation at any time, can acquire its own hybrid core capital to own up to 3 per cent of the total issued capital, if the acquisition is effected for the purpose of resale. Own hybrid core capital, however, must not exceed 10 percent of a single issue.

§ 18. It should be apparent from the agreement on the hybrid core capital that banks, building societies, stockbroking firms and investment management companies alone can redeem hybrid core capital pursuant to section 17, if the company has sufficient capital for redemption and in the foreseeable future then, so the financial and solvency situation remain reassuring.

(2). By the assessment referred to in paragraph 1 shall be the Bank, mortgage credit Foundation, stockbroking company and investment management company include the level and quality of basic capital, which is necessary in order to adequately cover the risks to which the Bank, mortgage credit Foundation, stockbroking company and investment management company is or may be exposed. Bank, mortgage credit Foundation, stockbroking company and investment management company shall in this context consider its liquidity position and earning capacity.

§ 19. It should be apparent from the agreement on hybrid core capital, which is due at a pre-determined time, that it alone must be cashed out at expiration, if the Foundation's money, mortgage credit Foundation, the company's stockbroking and investment management company's financial and solvency situation allows this.

§ 20. It should be apparent from the agreement on hybrid core capital to the Bank, mortgage credit Foundation, stockbroking firm or investment management company, as soon as the decision to redeem the hybrid core capital is taken, must apply to the FSA for authorization for redemption. This also applies to hybrid core capital that are due on a pre-determined time.

(2). Application for redemption in accordance with paragraph 1 shall be attached to the following: 1) an explanation of why the Bank, mortgage credit Foundation, stockbroking company and investment management company will deliver the hybrid core capital.

2) Solvency data including the level and composition of core capital before and after the settlement, as well as a confirmation that the company after redemption will continue to comply with the prudential requirements provided for in legislation or in regulations issued thereunder.

3) an explanation of the liquidity situation, including that the Bank, mortgage credit Foundation, stockbroking company and investment management firm after redemption will continue to comply with the prudential requirements provided for in legislation or in regulations issued thereunder.

4) an explanation for at least three years on the expected development of the data, which are made pursuant to nr. 2 and 3, based on the Foundation's money, mortgage credit Foundation, stockbroking company and investment management company's business plan, including the expected development in the balance sheet and the profit and loss account.

5) an assessment of the risks which the Bank, mortgage credit Foundation, stockbroking company and investment management company's business plan is or can be exposed against, and whether the level of capital base ensures that these risks are covered, including a stress test of the principal risks that show potential losses in different scenarios.

6 the Foundation's) money, mortgage Foundation, stockbroking company and investment management company's recent solvency requirement statement.

(3). If the hybrid core capital must be replaced by other hybrid core capital, the FSA require that bank mortgage credit Institute, stockbroking company and investment management company, renders probable that this is possible. Bank, mortgage credit Foundation, stockbroking and investment management company-the company must also disclose the amount that the importance of earning power, including expected price and terms.

(4). The Danish financial supervisory authority may require additional information if it is necessary to use for the examination of the application.

(5). Bank, mortgage credit Foundation, stockbroking company and investment management company may, after agreement with the FSA may refrain from submitting a full set of information, if the hybrid core capital already has been replaced with capital of equal or better quality.

Incentives for redemption of hybrid core capital in financial institutions, mortgage companies, stock brokerage firms and investment management companies



§ 21. Incentives for repayment are the terms and conditions relating to the hybrid core capital in financial institutions, mortgage companies, stock brokerage firms and investment management companies, which can give an expectation that the redemption will take place.

(2). Terms and conditions, which can give an expectation that the redemption will take place is an incentive for redemption, no matter that they are not temporally coincident with the possibility of redemption.

(3). An obligation on the issuer or owner to convert the hybrid core capital to equity, guarantor or cooperative capital as a result of financial or solvency problems is not an incentive for redemption.

(4). An opportunity for redemption, do not of themselves constitute an incentive for redemption.

(5). The existence of incentives for repayment is determined at the time of issue or by renegotiation of terms and conditions. Hybrid core capital with incentives for repayment is converted so as not to hybrid core capital without incentive for redemption when the incentive has lapsed as a result of the development. Regardless of 1. item can hybrid core capital with incentives for repayment not be converted into hybrid core capital without incentive for repayment as a result of a renegotiation after the incentive has lapsed as a result of the development.

§ 22. A rate increase is a moderate incentive for the fulfillment of the basic regulation. section 13, paragraph 2, no. 4, if it results in an increase in the issuing process initial interest, which is not greater than the highest of: 1) 100 basis points were deducted from the swap spread, and 2) 50% of the initial credit spread deducted from the swap spread.

(2). Swap spreads (1). 1 at the time of issue shall be determined as the difference between the interest rate increase comes interest rate basis and issuing process initial interest basis.

(3). Credit spread in (1). 2, shall be determined at the time of issue thereof as the difference between the initial interest and issuing process initial interest basis.

(4). The agreement on hybrid core capital must not contain more than one rate increase in service life of the instrument.

§ 23. A conversion to stock, guarantor or cooperative capital at a predetermined time or at the request of the owner of the hybrid core capital is a moderate incentive for the fulfillment of the basic regulation. section 13 (2). 4, if the agreement is a restriction on conversion rate, so it cannot exceed 150 percent of the conversion rate at the time of issue.

Write-down of hybrid core capital in financial institutions, mortgage companies, stock brokerage firms and investment management companies



§ 24. Notwithstanding section 13, paragraph 2, no. 9, the agreement on hybrid core capital contain provisions for write-downs of loan principal can only happen if 1) Bank, mortgage credit Foundation, stockbroking firm or investment management company after following either recapitalised to ensure the company's continued viability, or terminates without loss for the non-subordinated creditors, 2) stock, guarantor or andelskapitalen shall be reduced, or 3) equity in series performance reserve in the mortgage Department is lost.

(2). The write-down of hybrid core capital must at least could be done with the same percentage as stock, guarantor or andelskapitalen be reduced by.

(3). The write-down of the hybrid core capital can be combined with an option for subsequent appreciation. A subsequent revaluation must not be based on the new paid up equity, guarantor or cooperative capital, but can only be based on subsequent surplus, where the proportion of subsequent profits used for the revaluation of the hybrid core capital, most hybrid core capital must correspond to the proportion of the total core capital before the write-down of the hybrid core capital.


(4). There must not be treated in the terms and conditions of the agreement on hybrid core capital, which lengthens the time for implementation of the write-down.

(5). There may not be interest payments on hybrid core capital, which is depreciated. These payments will be canceled and will lapse on a permanent basis.

§ 25. The hybrid core capital in financial institutions, mortgage companies, stock brokerage firms and investment management companies must not be protected or covered by a guarantee from the issuer or a group of connected device or have other events, such as legal or economic can compensate the owner of the hybrid core capital for depreciation of capital.

section 26. The concrete framework for depreciation, without prejudice. section 24, shall be published in a manner that ensures sufficient transparency of the market. This can URf.eks. happen in connection with the fulfilment of the company's disclosure obligations according to annex 20 to the Ordinance on capital adequacy.

Chapter 5 Inventory of additional capital before deduction of financial institutions, mortgage companies, stock brokerage firms and investment management companies section 27. The additional capital in financial institutions, mortgage companies, stock brokerage firms and investment management companies consists of: 1) equity loan, see. section 29, 2) revaluation reserve, 3) Hybrid core capital, see. § § 13-16, there shall not be taken into account in the actual core capital, 4) a positive amount resulting from that from the accounting value adjustments and provisions on the non-trading book assets and liabilities except capital assets covered by a securitisation, securitiseringspositioner 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. Annex 8 of the Ordinance on capital adequacy, 5) that part of the series reservefondene in mortgage companies in series with refundable, that responds to the requirement set out in section 124, paragraph 8, of the law on financial business, 6) Paid a guarantor capital pursuant to § 208, paragraph 2, of the law on financial company can be counted as equity loan, see. However, § 47, and 7) Stock-guarantee-and cooperative capital, see. sections 5-7, which is not included in the core capital, and which meets the requirements set out in section 29.

(2). Revaluation reserves referred to in article 6. (1). 2, 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.

(3). 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 (3) of the financial business Act, and must not exceed 0.6 per cent of risk-weighted items of assets and liabilities, which are the subject of the internal method. In determining this percentage must be securitiseringspositioner with a 1,250 per cent risk weight shall not be taken into account.

section 28. The additional capital in financial institutions, mortgage companies, stock brokerage firms and investment management companies must not be taken into account by more than 100 percent of core capital after the in section 31 (1) (8). 1-9, said deductions.

(2). The responsible loan capital referred to in article 6. section 29, there shall be included when calculating the supplementary capital, see. However, paragraph 4, shall be reduced by: 1) 25 per cent of the issued capital, when there is less than three years and more than two years to decay, or 2) 50 per cent of the issued capital, when there is less than two years and more than one year to maturity, or 3) 75 per cent of the issued capital, when there is less than one year to maturity , 4) holding of own equity loan and a private equity loan pledged as security for loans or guarantees, reduced after no. 1-3. The provisions of paragraph 3. Equity loan, which does not comply with section 29 (1) (8). 6-7, must not be included with more than 50 percent of core capital after the in section 31 (1) (8). 1-9, said deductions.

(4). Equity loan, which does not comply with section 29 (1) (8). 6-7, and which shall be included when calculating the supplementary capital, reduced by: 1) 17 per cent of the issued capital, when there are less than five years and more than four years to decay.

2) 34 per cent of the issued capital, when there are less than four years and more than three years to decay.

3) 50 per cent of the issued capital, when there is less than three years and more than two years to decay.

4) 67 per cent of the issued capital, when there is less than two years and more than one year or to decay.

5) 83 per cent of the issued capital, when there is less than one year to maturity.

6) holding of own equity loan and a private equity loan pledged as security for loans or guarantees, reduced after no. 1-5. Equity loans in financial institutions, mortgage companies, stock brokerage firms and investment management companies



section 29. Equity loans in financial institutions, mortgage companies, stock brokerage firms and investment management companies can be included in the base capital, if the following conditions are met, in accordance with article 3. However, § 28, paragraphs 1 and 2:1) the lender's claims must be subordinated to those of all non-subordinated debt.

2) Amount to be paid.

3) Redemption before maturity may not be possible on the lender's initiative or without the FSA authorisation, without prejudice. However, paragraph 3.

4) Amount shall only become due before the agreed repayment date, unless the Bank, mortgage credit Foundation, stockbroking firm or investment management company shall enter into liquidation or is declared bankrupt.

5 the Foundation's) money, mortgage credit Foundation, stockbroking company and investment management company's Supreme authority must be able to write down the relevant equity loans and unpaid interest, if the equity is lost and equity, guarantor or andelskapitalen is written down to zero, or if the equity in series reserve funds in mortgage companies is lost, see. However, paragraph 4.

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.

(2). Other equity loan with an original maturity of at least five years or, where the maturity of the debt is not fixed, with a notice period of at least 5 years, after which the responsible loan capital can be met, can be included in the base capital, if (1). 1-5 have been met, see. However, § 28, paragraphs 3 and 4.

(3). 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.

(4). Depreciation in accordance with paragraph 1, nr. 5, 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 will terminate without any loss of non-subordinated creditors. The responsible equity loans and unpaid interest may only be decreased by an amount as is approved by the external auditors and the financial supervisory authority prior to the write-down.

(5). Interest rate rises on equity loan may not take place until three years after its date of issue. If that is agreed upon one or more interest rate increases, shall be deemed to be 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 on the day of issue, see. However, paragraph 6. By swap spread means the difference between the interest rate increase comes interest rate basis and issuing process initial interest basis.

(6). The Danish financial supervisory authority may in exceptional cases derogate from the limit of 150 basis points in paragraph 5, 2. PT.

section 30. It can regardless of article 29, paragraph 1, no. 3, be set out in the agreement on equity loan that the Bank, mortgage credit Foundation, stockbroking firm or investment management company with the FSA authorisation at any time, can acquire own equity loan to own or safety of up to 3 per cent of the total issued capital, however, a maximum of 10 percent of a single issue.

Chapter 6 Deduction of capital in financial institutions, mortgage companies, stock brokerage firms and investment management companies section 31. By statement of basic capital in financial institutions, mortgage companies, stock brokerage firms and investment management companies deductions under paragraphs 9-12 of the following: 1) this year's ongoing deficit.

2) proposed dividend.

3) intangible assets.

4) tax assets.

5) those parts of the Foundation's money, mortgage credit Foundation, stockbroking company and investment management company's exposures in virtue of the financial business Act § 145, paragraph 11, will not be subject to the provisions of the financial business Act § 145, paragraph 1-3.

6) the value of the Foundation's money, mortgage credit Foundation, stockbroking firm or investment management company's shares, guarantor or cooperative evidence that customers have acquired on the basis of loans, as the Bank, mortgage credit Foundation, stockbroking firm or investment management company directly or indirectly has made available to the acquisition thereof.


7) the difference between the valuation of assets in the trading book in accordance with Ordinance on financial reports for credit institutions and stockbroking companies, etc. and a careful inventory of positions after the application of the model value ("marking-to-model"), see. Ordinance on capital adequacy annex 2, point 8-13, which has not already been deducted in the core capital.

8) the accumulated value change of hedging by securing payment flows.

9) 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.

10) 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) and (b), since the deduction, however, cannot be less than zero: a) The share of a subsidiary or an affiliated insurance company forsikringsselskabs capital base, which corresponds to the-owned share of the company capital, and (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 daughter Versicherung or the associated insurance company when the equity loan is included in the forsikringsselskabets or the associated insurance company subsidiary capital base under section 37, paragraph 1, no. 1.11) Directly and indirectly-owned shares in subsidiaries and associated companies which are credit institutions, stockbroking firms, investment management companies or financial institutions, see. However, paragraphs 5-7. 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 in annex 5 of the financial business Act mentioned instruments, 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 after no. 12 or section 36, paragraph 2, no. 2, and indirectly-owned shares, which are deducted or exempted by a subsidiary insurance undertaking or an affiliated insurance company pursuant to section 36, paragraph 4, shall not be deducted.

12) holdings in other credit and financial institutions, which represent more than 10 percent of their equity, guarantor or cooperative capital, which are not covered by nr. 11 of the basic regulation. However, paragraphs 5-8. In addition, the Foundation's money, mortgage Foundation, for deduction stockbroking company and investment management company's subordinated capital in the mentioned companies.

13) the sum of the capital shares and subordinated capital in other credit and financial institutions, which are not covered by nr. 11 and 12, and in excess of 10 percent of the basic capital without the in no. 8-10 and 12, and the deduction referred to in this clause, see. However, paragraphs 5-8.

14) 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. 10-13, in excess of 15 per cent of the capital base after deductions pursuant to nr. 10-13, 18 and 19 of the basic regulation. However, paragraphs 5, 7 and 8, and without allowance under section 27 (1) (8). 4. the statement also included the stock purchase and aktiesalgs businesses, etc.

15) sum of qualifying holdings in other companies, which are not covered by nr. 10-14, and in excess of 60 per cent of the capital base after deductions pursuant to nr. 10-13, 18 and 19 of the basic regulation. However, paragraphs 5, 7 and 8, and without allowance under section 27 (1) (8). 4. the statement also included the stock purchase and aktiesalgs businesses, etc.

16) a negative amount resulting from that from the accounting value adjustments and provisions on the non-trading book assets and liabilities except capital assets covered by a securitisation, securitiseringspositioner 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. the section on the calculation and treatment of expected losses in annex 8 of the Ordinance on capital adequacy.

17) 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. the section on the calculation and treatment of expected losses in annex 8 of the Ordinance on capital adequacy.

18) 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 five days after the decay of the basic regulation. However, paragraph 7.

19) value of securitiseringspositioner, which according to the rules set out in annex 11 of the Ordinance concerning capital adequacy is assigned, or to securitiseringspositioner in trading book would be assigned a risk weight of 1,250 percent, unless the amount is included in the calculation of risk-weighted items, or securitiseringspositionen forms part of the exposures, there shall be deducted in accordance with no. 5. the provisions of paragraph 2. The adjustments referred to in paragraph 1, no. 8 and 9, can be positive or negative.

(3). The amount in (1). 10 (a), is calculated before deductions for direct and indirect owned assets under section 36, paragraph 2, no. 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). 10 (a) and (b) even holds daughter insurers or affiliated insurers, are assessed basic capital in § 33 (1). 5 (a), before deductions for these companies ' capital requirements, when the companies ' capital requirements have already been deducted under section 36, paragraph 2, no. 1. The amount referred to in paragraph 1, no. 10 (a) ascertained in addition before deduction under section 36, paragraph 2, no. 2 If the undertakings included in the consolidation in accordance with Chapter 12 of the financial business Act.

(4). In paragraph 1, no. 16 and 17, the said amounts are included only for assets and liabilities where risk-weighted items outside the trading book are assessed through the use of the internal ratings based method, see. § § 19-33 of Ordinance on capital adequacy.

(5). Notwithstanding paragraph 1, no. 11-15, shares not deductible, 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). 10, should also not be deducted, if the company is acquired temporarily, and the acquisition has taken place as part of a reconstruction.

(6). Notwithstanding paragraph 1, no. 11-13, 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 of the financial business Act, not be deducted. This shall also apply for subordinated capital in the credit and financial institutions covered by the consolidation.

(7). By statement of deductions referred to in paragraph 1, no. 11, 13-15 and 18 included amounts deducted pursuant to paragraph 1, nr. 5, no.

(8). Shares acquired for pool products, where customers bear the risk, are not included when calculating the amounts referred to in paragraph 1, no. 11-15. (9). The deductions provided for in paragraph 1, no. 1-6, must be deducted from the real core capital.

Paragraph 10. Deduction in accordance with paragraph 1, nr. 7, must be deducted from core capital. The adjustments referred to in paragraph 1, no. 8 and 9, shall be carried out in the core capital and can be positive or negative.

Paragraph 11. The deductions provided for in paragraph 1, no. 10-19, deduction for half of core capital and for the other half part of the additional capital, see. However, paragraph 12.

Paragraph 12. If half of the reductions referred to in paragraph 1, no. 10-19, are greater than the additional capital, the excess shall be deducted from share in core capital.

Paragraph 13. In determining the base capital for the use of the financial business Act section 145 (1) and (3), the basic capital are stated without surcharges and deductions under section 31 (1) (8). 16 and 17.

Section III specific rules applicable to insurance companies and lateral pension funds Chapter 7 Statement of basic capital in insurance companies and lateral pension funds § 32. The basic capital of insurance companies and lateral pension funds consists of the sum of the core capital and supplementary capital after deductions.

Chapter 8 Statement of core capital after deduction of insurance companies and lateral pension funds § 33. 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. § 34, 3) special bonus provisions (type B) in life insurance companies and lateral pension funds, which satisfies the conditions laid down in section 35,


4) the value of tax assets, as it will be in a management situation. financial business Act §§ 253-258, and 5) a positive or negative difference between 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-owned share of the company capital, and (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 37, paragraph 1, no. 1. the provisions in paragraph 2. Core capital shall 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.

(3). Basic capital (1). 5 (a), is calculated before deductions for direct and indirect owned assets under section 36, paragraph 2, no. 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 36, paragraph 2, no. 1. the provisions in paragraph 4. The Appendix referred to in paragraph 1, no. 5 may for each subsidiary or affiliated company, there is a financial business, up to a maximum equal to the amount of the relevant subsidiary or associate is deducted under section 36, paragraph 2, no. 1. the provisions in paragraph 5. 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.

Member accounts in mutual companies and lateral pension funds



§ 34. Member accounts in mutual companies and lateral pension funds can be included under section 33 (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 cases other than those in (i); 1, 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) Changes in the statutes provisions for members ' accounts must be approved by the FSA.

Special bonus provisions (type B) in life insurance companies and lateral pension funds



section 35. For special bonus provisions (type B) in life insurance companies and lateral pension funds, which are included in the base capital pursuant to section 33, paragraph 1, no. 3, and 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, in the financial business Act, or of the distributions from shareholders ' equity.

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, see. However, paragraph 2 in respect of collective special bonus reserves built up by payments from equity.

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, in the financial business Act, which shall be supplied with the stock.

4) transfer of an insured individual special bonus provisions and an insurance share of collective special bonus reserves built up by forsikringernes share of the realized profit or loss shall be carried out at the latest at the same time with the payment 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) A special bonus provisions and an individual insurance insurance share of collective special bonus reserves built up by forsikringernes share of the realized outcome must pass fully through the calculation and payment of surrender values, by transfers from one company to another, by changing jobs or in connection with acquisitions or business transformation, see. Article 20, paragraph 1, no. 7 of the law on financial business. An insurance share of collective special bonus reserves built up by the distribution of own funds used by the calculation and payment of surrender values, by transfers from one company to another, by changing jobs or in connection with acquisitions or business transformation, see. Article 20, paragraph 1, no. 7 of the law on financial business. Special bonus provisions, however, may only be included if the core capital elements in forming the company 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 more than one-third of the solvency requirement or make up an amount greater than the minimum capital requirement.

(2). Amount is irrevocably distributed from equity in favour of the insured, can be assimilated to the special bonus provisions (type B), when after a specified allocation rule over a period of time be made to comply with the conditions laid down in paragraph 1, no. 2 and 4, and no. 6, 1. point. It is a condition that the distributed amount together with other special bonus provisions (type B) fulfils the conditions set out in paragraph 1, no. 3 and 5. Allocation rule must be notified to the supervisory authority for the rule to apply. The distribution must be maximum item ten years from the time the amount was originally distributed from equity.

Reductions in core capital in insurance companies and lateral pension funds



§ 36. Core capital in insurance companies and lateral pension funds are reduced by 1) proposed dividends, 2) intangible assets and 3) tax assets, see. However, section 33 (1). 4. the provisions of paragraph 2. In addition to the deduction referred to in paragraph 1 shall be deducted from the following: 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 financial supervision supervision. The deduction shall not, however, be made for investment in subsidiaries and assets within the scope of § 162 (1) (8). 1-8 of the law on financial business. 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.

(3). The Danish financial supervisory authority may in exceptional cases and for a limited period exempt from deduction in core capital pursuant to paragraph 2, no. 3. the provisions of paragraph 4. Insurance companies must in core capital to deduct direct and indirect owned shares in daughter finansieringsinstitutter and associated financial institutions. 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 in annex 5 of the financial business Act mentioned instruments, 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 31 (1) (8). 11 or 12, should not be deducted. The Danish financial supervisory authority may, in exceptional cases, exempt from it in 1. paragraph referred to deductions.


(5). For a financial undertaking which is a subsidiary or an associate, which does not have its registered office in Denmark, used in paragraph 2, 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 proportion of the capital requirement or the shares in subsidiaries and associated companies shall not be deducted from the basic regulation. paragraphs 2 and 4, when the companies are acquired on a temporary basis, and the acquisition has taken place as part of a reconstruction.

Chapter 9 Inventory of additional capital in the insurance companies and lateral pension funds § 37. The additional capital in the insurance companies and lateral pension funds consists of 1) equity loan, see. sections 38 and 39, 2) allowance for possible supplementary premium in mutual property and casualty insurance companies, see. section 40, and 3 special bonus provisions) (type A) in life insurance companies and lateral pension funds, which satisfies the conditions laid down in section 41.

(2). 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) 50% of the capital requirement.

(3). 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.

Equity loan in insurance companies and lateral pension funds



section 38. Equity loan in insurance companies and lateral pension funds can be included in the base capital, if the following conditions are met, in accordance with article 3. However, section 37, paragraph 2:1) the lender's claims must be subordinated to those of all non-subordinated 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 insurer and the transverse institution shall enter into liquidation or is declared bankrupt.

5) insurance company and the lateral pension Treasury's top authority must be able to write down the relevant equity loans and unpaid interest, if the equity is lost, and stock and guarantee capital is depreciated to zero, see. However, § 49.

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) the original maturity is at least five years.

9) 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 insurer and the transverse institution subsequently 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 is approved by the external auditors and the financial supervisory authority prior to the write-down.

(4). Interest rate rises on equity loan may not take place until three years after its date of issue. If that is agreed upon one or more interest rate increases, shall be deemed to be 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 on the day of issue. By swap spread means the difference between the interest rate increase comes interest rate basis and issuing process initial interest basis.

(5). The Danish financial supervisory authority may in exceptional cases derogate from the limit of 150 basis points in paragraph 4, 2. PT.

§ 39. The responsible loan capital in the insurance companies and lateral pension funds, which are included in the inventory of the basic capital is reduced by 1) 25 per cent of the issued capital, when there is less than three years and more than two years to decay, or 2) 50 per cent of the issued capital, when there is less than two years and more than one year to maturity, or 3) 75 per cent of the issued capital When there is less than one year to maturity, and 4) holding of own equity loan and a private equity loan pledged as security for loans or guarantees, reduced after no. 1-3. Appendix for possible supplementary premium in mutual property and casualty insurance companies



§ 40. 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 37, paragraph 1, no. 2, 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 37, paragraph 1, no. 2. Special bonus provisions (type A) in life insurance companies and lateral pension funds



§ 41. For special bonus provisions (type A) in life insurance companies and lateral pension funds, which are included in the base capital pursuant to section 37, paragraph 1, no. 3, and 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, in the financial business Act, or of the distributions from shareholders ' equity.

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, see. However, paragraph 2 in respect of collective special bonus reserves built up by payments from equity.

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, in the financial business Act, which shall be supplied with the stock.

4) transfer of an insured individual special bonus provisions and an insurance share of collective special bonus reserves built up by forsikringernes share of the realized profit or loss shall be carried out at the latest at the same time with the payment of benefits under the insurance policy.

5) special bonus reserves built up by funds from the forsikringernes portion of the realized outcome, without prejudice. Article 20, paragraph 1, no. 3, of the law on financial business must continuously be assigned one of marketable terms agreed upon rate of return equal to the equity loan. Special bonus reserves built up by payments from equity must continuously be assigned a return corresponding to market terms for the equity loan, which is provided by the company.

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

7) an insured individual special bonus provisions and an insurance share of collective special bonus reserves built up by forsikringernes share of the realized outcome must pass fully through the calculation and payment of surrender values, by transfers from one company to another, by changing jobs or in connection with acquisitions or business transformation, see. Article 20, paragraph 1, no. 7 of the law on financial business. An insurance share of collective special bonus reserves built up by the distribution of own funds used by the calculation and payment of surrender values, by transfers from one company to another, by changing jobs or in connection with acquisitions or business transformation, see. Article 20, paragraph 1, no. 7 of the law on financial business. Special bonus provisions, however, may only be included if the core capital elements in forming the company 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 more than one-third of the solvency requirement or make up an amount greater than the minimum capital requirement.

(2). Amount is irrevocably distributed from equity in favour of the insured, can be assimilated to the special bonus provisions (type A), when after a specified allocation rule over a period of time be made to comply with the conditions laid down in paragraph 1, no. 2 and 4, and no. 7, 1. point. It is a condition that the distributed amount together with other special bonus provisions (type A) fulfils the conditions set out under paragraph 1, nr. 3, 5 and 6. Allocation rule must be notified to the supervisory authority for the rule to apply. The distribution must be maximum item ten years from the time the amount was originally distributed from equity.

Date of entry into force and transitional provisions title IV Chapter 10 of the Penal provision of section 42. Violation of section 11 (1) and (2) is punishable by fine or imprisonment up to 4 months.

(2). Violation of section 8, section 12, section 25 and section 26, be punished by a fine.

(3). That can be imposed on companies, etc. (legal persons) criminal liability according to the rules laid down in the Penal Code Chapter 5.

Chapter 11 entry into force and transitional provisions § 43. The notice shall enter into force on the 1. October 2012, see. However, paragraph 2.

(2). section 8 (1), (3) and (4) and sections 9 and 10, shall enter into force on the 1. January 2013.


(3). Executive Order No. 764 of 24. June 2011 on the estimation of capital base are hereby repealed.

§ 44. Guarantor-and cooperative capital, who met the requirements for inclusion in core capital by 30. June 2011, but which did not meet the requirements of guarantor-and andelskapitalen after the 1. July 2011, can be included in the core tier capital up to the 1. July 2012.

§ 45. Hybrid core capital in financial institutions, mortgage companies, stock brokerage firms and investment management companies issued before 1 May 2004. July 2010, which met the requirements for hybrid core capital before the 1. July 2010, but which did not meet the requirements for hybrid core capital after the 1. July 2010, until 31 March 2006. December 2040 equated with hybrid core capital, which complies with the requirements of §§ 13-26, however, with the following restrictions: 1) in the period from the 1. January 2020 to 31 December 2006. December 2029 such capital must not exceed 20 percent of core capital was reduced by the value of own shares, intangible assets and of the year continuously deficits.

2) during the period from the 1. January 2030 to the 31. December 2039 such capital must not exceed 10 per cent of core capital was reduced by the value of own shares, intangible assets and of the year continuously deficits.

(2). Hybrid core capital covered by paragraph 1, which could be included with up to 50 percent of core capital including hybrid core capital before the 1. July 2010 equated with hybrid core capital, which meets the requirements of section 15 (1) (8). 1 and 2, until 31 March 2006. December 2040 with the same restrictions as specified in paragraph 1, no. 1 and 2.

(3). Hybrid core capital covered by paragraph 1, which could be included with up to 35 percent of core capital including hybrid core capital before the 1. July 2010 equated with hybrid core capital, which meets the requirements of section 15, paragraph 2, until 31 March 2006. December 2040 with the same restrictions as specified in paragraph 1, no. 1 and 2.

§ 46. Hybrid core capital in financial institutions, mortgage companies, stock brokerage firms and investment management companies issued in the period from the 1. July 2010 up to and including 30 June. June 2011, which met the requirements for hybrid core capital by 30. June 2011, but which does not meet all of the requirements for hybrid core capital in this Ordinance, may be equated with hybrid core capital, which meets the requirements of this Ordinance.

§ 47. Paid guarantee capital under section 208, paragraph 2, of the law on the financial undertaking which could be included in core capital before the 1. July 2011, can be included in the core tier capital up to the 1. July 2016.

section 48. section 35 (2) and section 41, paragraph 2, shall not apply to collective special bonus provisions, which is built up of distributions from shareholders ' equity before the entry into force of the Executive order.

§ 49. section 38 (1) (8). 5, shall not apply to agreements concerning equity loan entered into before 1 January 2002. January 2004.

The Danish financial supervisory authority, the 12. September 2012 Ulrik Nødgaard/Sean Hove Official notes 1) Ordinance contains provisions implementing parts of the first Council Directive 73/239/EEC of 24. July 1973 (1. non-life insurance directive), the official journal 1973, nr. L 228, page 3, parts of Council Directive 84/641/EEC of 10. December 1984 (Amendment of 1. non-life insurance directive), official journal 1985, nr. L 339, p. 21, parts of Council Directive 92/49/EEC of 18. June 1992 (3. non-life insurance directive), the official journal of the European communities, 1992, nr. L 228, page 1, parts of the European Parliament and Council Directive 2002/13/EC of 5. March 2002 (solvency 1-directive), the official journal of the European communities 2002, nr. L 77, page 17, parts of the directives 79/267/EEC of 5. March 1979, 90/619/EEC of 8. November 1990, 92/96/EEC of 10. November 1992 and 2002/12/EC of 5. March 2002, which is now compiled in European Parliament and Council Directive 2002/83/EC of 5. November 2002 (life assurance Directive), the official journal of the European communities 2002, nr. L 345, page 1, parts of the European Parliament and Council Directive 2002/87/EC of 16. December 2002 (conglomerates directive), the official journal of the European Communities 2003, nr. L 35, page 1, 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) (banking directive), the official journal of the European Union 2006, nr. L 177, page 1, 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) (CRD), the official journal of the European Union 2006, nr. L 177, page 201, parts of the European Parliament and of the Council directive 2009/111/EC of 16. September 2009 amending directives 2006/48/EC, 2006/49/EC and 2007/64/EC as regards banks connected to the central bodies, certain components of the own funds, large exposures, supervisory arrangements, and crisis management (CRD II), the official journal of the European Union 2009, nr. L 302, page 97, and parts of the European Parliament and of the Council directive 2010/76/EU of 24. November 2010 amending Directive 2006/48/EC and 2006/49/EC as regards capital requirements for the trading book and for re-securitisations, and the supervisory review of remuneration policies (CRD III), the official journal of the European Union 2010, nr. L 329, page 3