Financial Business Act.pdf

While this translation was carried out by a professional translation agency, the text
is to be regarded as an unofficial translation based on the latest official Consolidated
Act no. 286 of 4 April 2006. Only the Danish document has legal validity.
October 2006, GlobalDenmark Translations
3) outstanding accounts against or guaranteed by the European Communities,
4) outstanding accounts against or guaranteed by Danish counties, Danish municipalities,
Greenland's Home Rule, or the Government of the Faroe Islands, or secured by means
of securities issued by Danish counties, Danish municipalities, Greenland’s Home Rule,
and the Government of the Faroe Islands within 90 per cent of the market value of the
relevant security,
5) outstanding accounts against or guaranteed by regional and local authorities in EEA
countries, or secured by means of securities issued by such regional and local
authorities where the competent authorities have provided a zero weighting within 90
per cent of the market value of the relevant security,
6) mortgage-credit bonds and bonds issued by Danish Ship Finance, and
7) demand deposits with credit institutions within Zone A.
(2) The Danish FSA may lay down more detailed regulations on placement of funds in assets
other than those mentioned in subsection (1).
(3) When calculating the funds placed, cf. subsections (1) and (2), the value of the assets
shall be recognised at the lower of the purchase price or the market price.
(4) If the value of the total funds placed in the assets mentioned in subsections (1) and (2)
becomes less than the value of the financial liabilities in respect of outstanding electronic
amounts, the Danish FSA shall ensure that the electronic money institution takes the steps
necessary to remedy this situation immediately. In such cases, the Danish FSA may
temporarily allow that the undertaking's financial liabilities in respect of outstanding electronic
amounts are honoured by means of assets other than those mentioned in subsections (1) and
(2), up to an amount corresponding to a maximum of 5 per cent of these liabilities or the
company’s capital base, applying, however, the lesser of the two amounts.
321.-(1) The funds of an electronic money institution placed in assets that fall within the
scope of section 320(1), nos. 6 and 7, may not exceed the company’s capital base by a factor
of more than twenty.
(2) An electronic money institution’s holding of funds placed in assets that fall within the scope
of section 320(1), no. 6, shall not constitute more than 250 per cent of the company’s capital
base per issuer.
(3) An electronic money institution’s holding of funds placed in assets that fall within the scope
of section 320(1), no. 7, shall not constitute more than 125 per cent of the company’s capital
base per bank. Placements may not, however, exceed 25 per cent of the bank’s capital base.
322.-(1) If an electronic money institution has an interest-rate risk greater than 10 per cent
of the capital base or the currency indicator 1 is greater than 10 per cent of the capital base,
the Danish FSA shall lay down more detailed regulations on the weighting of market risks.
Interest-rate risks and the currency indicator 1 shall be calculated as for banks.
(2) Electronic money institutions may only use derivative financial instruments with a view to
hedging market risks.
EXCLUDING MINOR AMENDMENTS
323. At the end of each six-month period, electronic money institutions shall submit to the
Danish FSA a statement on how funds are placed. The Danish FSA shall lay down more
detailed regulations hereon.