Financial Business Act.pdf

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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 ”3a. The Minister for Economic and Business Affairs shall lay down detailed regulations on the use of digital communication, including electronic signatures, when exchanging information in accordance with this Act between citizens and undertakings on the one hand and the public administration on the other hand, as well as storage of information.” 4. Section 4 shall be worded as follows: ”4.-(1) For the purposes of this Act, a ”securities dealer” shall mean 1) financial undertakings licensed as banks or investment companies, 2) financial undertakings licensed as mortgage-credit institutions or investment management companies to the extent that such undertakings are licensed under section 9(1) of the Financial Business Act, 3) credit institutions, investment companies and management companies, which have been granted a license in another country within the European Union or a country with which the Community has entered into an agreement for the financial area, if such institution or company legally carries out securities trading either through a branch or by providing services in Denmark, cf. sections 30 and 31 respectively of the Financial Business Act, and 4) credit institutions and investment firms, which have been granted a license in another country outside the European Union or a country with which the Community has not entered into an agreement for the financial area, if such institution or firm legally carries out securities trading either through a branch or by providing services in Denmark, cf. sections 1(3) and 33 respectively of the Financial Business Act. (2) The provisions of this Act regarding the obligations of a securities dealer shall also apply to foreign credit institutions and investment firms that, in pursuance of section 20(2), have been accepted as members of a Danish stock exchange, or that, in pursuance of section 64(3), have entered into participation agreements with a central securities depository.” 5. Section 4a shall be repealed. 6. After section 7, the following shall be inserted: ”7a. For the purposes of this Act, a ”registered payment system” shall mean a payment system registered pursuant to section 57a(1), 1st clause.” 7. Section 12(3)-(5) shall be repealed. Subsections (6) and (7) shall hereafter become subsections (3) and (4). 8. In section 12(6) and (7), which become subsections (3) and (4), ”section 7(1), nos. 1, 5 and 6” shall be amended to: ”Section 7(1), nos. 1, 2, 5 and 6”. 9. Section 12b shall be worded as follows: ”12b.-(1) Persons employed by the board of directors of a limited company covered by section 7, and employees for whom there is a significant risk of conflicts between own interests and the interests of the company shall not, at their own expense, or through companies they control, EXCLUDING MINOR AMENDMENTS
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 1) take up loans or draw on previously established credits to be used for acquisitions of securities when the securities acquired are provided as collateral for said loan or credit, 2) acquire, issue, or trade in derivative financial instruments, except when the objective is hedging, 3) acquire equity investments, except for shares in investment associations and specialpurpose associations, etc., with a view to selling such shares less than six months from the date of acquisition, or 4) acquire positions in foreign currency, except for euro (EUR), if taking the position takes place with a view to anything other than payment for the purchase of securities, goods or services, or management of real property, or for use when travelling. (2) The group of persons mentioned in subsection (1) shall not acquire equity investments in companies that carry out business mentioned in subsection (1), nos. 1-4. This shall not apply, however, for purchases of shares in banks, insurance companies, mortgage-credit institutions, and investment companies, as well as shares in investment associations and special-purpose associations, etc. (3) The board of directors shall decide which employees have a significant risk of conflicts between their own interests and the interests of the limited company, and who shall therefore be covered by the prohibition. (4) At the request of the external auditors, the persons covered by subsection (1) shall notify any financial transactions carried out by them. Notification shall be accompanied by necessary documentation. In order to check compliance with the provision, the external auditors shall have access to making inquiries about the accounts and custody accounts owned by the relevant employee, as well as access to demanding copies therefrom upon request to the account-holding institution. (5) On the basis of the notifications, the external auditors shall declare in the audit book comments whether the checks mentioned in subsection (4) have given rise to any observations. (6) The prohibition in subsection (1), no. 2 shall not cover financial instruments derived from shares in the limited company, or a company in the same group as the limited company, received as part of the relevant person's salary. (7) The prohibition in subsection (1), no. 1 shall not cover loans to buy employee shares or the instruments mentioned in subsection (6). (8) Chief internal auditors and deputy chief internal auditors may, irrespective of subsections (1)-(7), not have financial interests in the company or group in which they are employed.” 10. Section 12c shall be worded as follows: ”12c. A board member in a limited company covered by section 7 shall not be allowed to hold the position as member of the board of management or chief internal auditor of said company.” EXCLUDING MINOR AMENDMENTS 11. Section 12d shall be worded as follows: ”12d.-(1) Persons employed by the board of directors of a limited company covered by section 7 may not, without the consent of the board of directors, own or operate an
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