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
39.-(1) A financial undertaking wishing to carry out activities in the form of cross-border
services in a country within the European Union, or in a country with which the Community has
entered into an agreement for the financial area, shall notify the Danish FSA hereof, indicating
the country in which it wishes to initiate the activities and the type of activities it wishes to
commence. Insurance companies shall furthermore submit information about the classes of
insurance, groups of classes of insurance and any subsidiary risks they wish to cover.
(2) The Danish FSA shall forward the notification mentioned in subsection (1) and a
declaration stating that the activities planned are covered by the company's authority to the
supervisory authorities in the host country no later than 1 month after receipt of the
notification mentioned in subsection (1). If the undertaking is an insurance company, the
Danish FSA shall furthermore submit a solvency certificate to the supervisory authorities of the
host country. If the undertaking is an investment management company, the Danish FSA shall
furthermore submit information about the investor and depositor guarantee scheme.
(3) If the undertaking is an investment company or an investment management company,
said undertaking is required to notify the Danish FSA and the supervisory authorities of the
host country of any change in the conditions mentioned in subsection (1) no later than one
month before the changes are implemented. If it proves impossible to notify the Danish FSA of
the change no later than one month before the change is implemented, notification must take
place without delay.
(4) An investment management company delegating to a third party the marketing of
interests in another country within the European Union or in a country with which the
Community has entered into an agreement for the financial area shall follow the procedure
mentioned in section 31(1).
(5) Provided that the Danish FSA has required an insurance company to prepare a plan for
restoration, cf. section 248, the Danish FSA shall not forward a solvency certificate.
40.-(1) A financial undertaking wishing to establish a subsidiary undertaking (which is a credit
institution, an investment firm or an insurance company) in a country outside the European
Union with which the Community has not entered into an agreement, is required to obtain a
license for this from the Danish FSA. If there is reason to doubt that the administrative
structure and financial situation of the undertaking are reasonable as a basis for the
establishment of a subsidiary undertaking planned, the Danish FSA shall not grant a license.
(2) A financial undertaking shall notify the Danish FSA when establishing subsidiary
undertakings not covered by subsection (1) in a country outside the European Union with
which the Community has not entered into an agreement.
Special regulations regarding the activities of Danish insurance companies abroad
41. The Danish FSA may lay down more detailed regulations regarding the activities of Danish
insurance companies in countries outside the European Union, with which the Community has
not entered into an agreement for the financial area.
EXCLUDING MINOR AMENDMENTS
42. The Danish FSA may lay down regulations regarding transfer of insurance portfolio
arranged in accordance with activities under section 38(1) and section 39(1).