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 <strong>Act</strong> 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
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 <strong>Act</strong> no. 286 of 4 April 2006. Only the Danish document has legal validity. October 2006, GlobalDenmark Translations a) 18 per cent of the risk-weighted items for the maximum of gross premiums and gross premium income up to EUR 50 million plus 16 per cent of amounts exceeding this figure, and b) the annual average of 26 per cent of the risk-weighted items for the gross costs of claims for amounts up to EUR 35 million and 23 per cent of amounts exceeding this figure in the last 3 accounting years, 6) EUR 3 million for insurance companies and lateral pension funds (nationwide occupational pension funds) carrying out life-assurance business, 7) EUR 2 million for insurance companies and lateral pension funds (nationwide occupational pension funds) carrying out activities within insurance classes 1-9 and 16- 18, and 8) EUR 3 million for insurance companies carrying out activities within insurance classes 10-15. (2) The solvency requirement shall constitute the sum of the amounts mentioned in subsection (1), nos. 1-5. (3) The minimum capital requirement shall constitute the highest of the amounts in subsection (1), nos. 6-8. (4) The minimum capital requirement may be reduced for mutual insurance companies covered by subsection (1), no. 7 or 8 on more detailed conditions. (5) For mutual insurance companies covered by subsection (1), no. 7 or 8, which fulfil the conditions in subsections (4) and (6), the minimum capital requirement shall be reduced to the largest amount of 1) EUR 0.225 million for a license within insurance classes 1-8, 16 and 18, and 2) EUR 0.15 million for a license within insurance classes 9 and 17. (6) In order to be covered by the reduced capital requirement mentioned in subsection (5), a mutual insurance company shall, apart from the conditions mentioned in subsection (4), fulfil the following conditions: 1) The articles of association shall provide the possibility for charging extra or reducing the payments, 2) the previous accounting year's gross premium income may not exceed EUR 5 million, 3) the company may not hold a license within insurance classes 10-15, and 4) no less than half of the previous accounting year's gross premium income shall originate from insurance contracts where the policyholders are natural persons who are members of the company. 127. The capital requirement shall be the largest of the solvency requirement and the minimum capital requirement in sections 124-126 for the financial undertaking, and for investment companies and investment management companies, also the capital base requirement of section 125(4). EXCLUDING MINOR AMENDMENTS 128.-(1) The capital base shall be the reduced core capital, cf. section 129-131, plus the reduced additional capital, cf. section 135, and less amounts under section 139.
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