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
4) assets belonging to the association which have been provided as collateral for the
liabilities of the association shall be returned to the depositary when the collateralised
claim has been redeemed,
5) dividend payments or retaining earnings to increase the assets only takes place in
accordance with the regulations hereon stipulated in the articles of association of said
association,
6) measurement of an association's mortgage portfolio takes place in accordance with the
regulations hereon,
7) buying and selling securities and derivative financial instruments by an association
takes place in accordance with section 46 of the Investment Associations and Special-
Purpose Associations as well as other Collective Investment Schemes etc. Act, and
8) buying and selling of other assets, including mortgages, takes place at prices that are
not less advantageous than the fair value.
107. The depositary shall be liable to the association for any damage said association may
suffer as a result of faulty performance or non-performance of the obligations of said
depositary. The depositary shall be liable notwithstanding that said depositary delegates the
safe-keeping of the association's assets or parts hereof to another depositary. The depositary
may not disclaim this liability by agreement.
Special regulations regarding insurance companies
108.-(1) The board of management shall ensure that an insurance company has sufficient
expertise to calculate insurance provisions.
(2) If the insurance company is licensed to carry out life-assurance activities, the board of
directors shall employ a responsible actuary to carry out the actuarial functions necessary,
including calculations and investigations. The position as actuary shall not be compatible with
the position as a member of the board of management or the board of directors of the
insurance company.
(3) If the responsible actuary resigns or is dismissed, the board of directors and the
responsible actuary shall submit separate accounts of the reason for such termination of work
to the Danish FSA no later than 1 month after the date of termination.
(4) The responsible actuary shall ensure that the company complies with its technical basis,
etc. The actuary shall, in this connection, review the actuarial contents of the company's
activities and material in general, including marketing material and bonus projections, and
ensure that the technical basis etc., cf. section 20, complies with the conditions mentioned in
section 21(1)-(5) at any time.
(5) The responsible actuary shall immediately notify the Danish FSA of any disregard of the
conditions mentioned in subsection (4). The actuary shall be entitled to request from the board
of management any information necessary for the execution of his duties. The Danish FSA may
request from the actuary the information necessary to assess the financial position of the
company.
EXCLUDING MINOR AMENDMENTS
(6) The responsible actuary shall submit a report to the Danish FSA annually.