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
The companies mentioned in subsection (1), no. 3 may, when determining the addition, make
a deduction corresponding to EUR 875,000, and the companies mentioned in subsection (1),
no. 4 may make a deduction corresponding to EUR 175,000. The addition may be no more
than EUR 10 million. Investment management companies shall adjust the additional capital
annually on the basis of their audited annual financial statements. Said adjustment shall be
made no later than 1 June of the following year.
(3) The Danish FSA may authorise that up to 50 per cent of the addition under subsection (2)
is provided by means of a guarantee from a credit institution or an insurance company. The
credit institution or insurance company shall have its registered office within the European
Union, or in a country with which the Community has entered into an agreement for the
financial area, or in a country with which the Community has not entered into an agreement,
but which has supervisory regulations that correspond to the regulations in the European
Union.
(4) An investment company and an investment management company shall, irrespective of
the requirements in subsections (1) and (2), have a capital base corresponding to no less than
one quarter of the fixed costs of the previous year. The Danish FSA may adapt this
requirement in cases of a significant change in the company's activities within the previous
year. If a company has not been operating for one year, it shall have a capital base
corresponding to no less than a quarter of the fixed costs appearing from its operating plan for
the first year of operation unless the Danish FSA requires this plan to be amended.
(5) The board of directors and the board of management of investment companies and
investment management companies shall, on the basis of the company’s risk profile, calculate
the individual solvency need of the company. The solvency need shall be expressed as the
capital base as a percentage of the risk-weighted items. The solvency need may not be less
than the solvency requirement of subsection (1), no. 1, the minimum capital requirement of
subsection (1), nos. 2-4 and subsection (2), or the capital base requirement of subsection (4).
(6) The Danish FSA may lay down a higher solvency requirement than the one stipulated in
subsection (1), no. 1.
126.-(1) The capital base of insurance companies and lateral pension funds (nationwide
occupational pension funds) shall constitute no less than
1) 4 per cent of the risk-weighted items for life-assurance provisions plus 0.3 per cent of
the risk-weighted items for the risk sum for life-assurance business in insurance classes
I-IV and VI where the company has an investment risk,
2) 1 per cent of the risk-weighted items for life-assurance provisions plus 0.3 per cent of
the risk-weighted items for the risk sum for life-assurance business in insurance class
V, and in insurance class III where the company does not have an investment risk, and
where the amount intended to cover the operating costs set in the insurance contract
shall be determined for a period of more than 5 years,
3) 25 per cent of the previous year's insurance-related administration costs plus 0.3 per
cent of the risk-weighted items for the risk premium for life-assurance business in
insurance class III, where the company does not have an investment risk, and where
the amount intended to cover the operating costs set in the insurance contract shall not
be determined for a period of more than 5 years,
4) 25 per cent of the previous accounting year’s insurance-related administration costs for
separate SP (Special Pension Savings Scheme) accounts,
5) the largest amount in a non-life assurance company of
EXCLUDING MINOR AMENDMENTS