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 (2) Core capital and revaluation reserves shall exclude any form of tax that can be foreseen at the time when the amount is calculated, or it shall be adequately adjusted to the extent that taxes reduce the amount with which said capital may be used to hedge risks or losses. 129.-(1) The core capital in banks, mortgage-credit institutions, investment companies, and investment management companies shall consist of 1) paid-up share capital, guarantee capital, or cooperative capital, 2) share premium, 3) reserves, 4) retained earnings or losses, 5) the current profit for the year, net of any tax, expected dividends and other predictable expenses, provided the amount has been confirmed by the undertaking's external auditors, cf. subsection (3), 6) undistributable savings bank reserve, cf. section 211, 7) paid-up guarantee capital, cf. section 208(2), 8) hybrid core capital, cf. section 132, if the core capital, cf. nos. 1-7, 9 and 10, after the deductions mentioned in section 131 constitutes no less than 5 per cent of the riskweighted items etc. of the bank, mortgage-credit institution, investment company or investment management company. 9) serial reserve funds in mortgage-credit institutions in series where there is no repayment obligation to the borrowers, and the part of the serial reserve funds in series with a repayment obligation, cf. section 25 of the Mortgage-Credit Loans and Mortgage-Credit Bonds etc. Act, which cannot become payable, and 10)undistributable fund reserve in mortgage-credit institutions. (2) Hybrid core capital under subsection (1), no. 8 shall be no more than 15 per cent of the core capital after the deductions mentioned in section 131. (3) If the possibility of recognising the current profit for the year in the core capital is used, cf. subsection (1), no. 5, the size of the amount shall be subject to confirmation by the external auditors. The Danish FSA may lay down more detailed regulations on the external auditors' actions in connection with such confirmation. (4) The external auditors shall disclose information in the audit book on the work carried out pursuant to subsection (3). In connection with this, information shall also be disclosed on the solvency ratio of the bank, mortgage-credit institution, investment company or investment management company before and after recognition of the current profit for the year. 130.-(1) The core capital of insurance companies and lateral pension funds (nationwide occupational pension funds) shall consist of 1) own funds, 2) member accounts in mutual companies and lateral pension funds (nationwide occupational pension funds), cf. section 133, 3) special bonus provisions (type B) in life-assurance companies and lateral pension funds (nationwide occupational pension funds) fulfilling the conditions in section 134, 4) the value of tax assets as it would be in a management situation, cf. sections 253-258, and 5) a positive or negative difference between 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 a) an amount corresponding to the interest in the capital base of a subsidiary undertaking or an associated undertaking that is a financial undertaking, which corresponds to the proportion of the share capital owned, and b) the value in the balance sheet of the ownership interest in question with an addition of the value of the subordinate loan capital, including subordinate loan capital from other group undertakings, to the subsidiary undertaking or the associated undertaking, when subordinate loan capital is included in the capital base of the subsidiary undertaking or the associated undertaking under section 135(1), no. 1. (2) The capital base in subsection (1), no. 5, a) shall be calculated before deductions for directly and indirectly owned assets under section 131(2), no. 3 to the extent that these assets are already included in this provision when calculating the core capital of the owner undertaking. If the relevant subsidiary insurance company or associated insurance company own subsidiary insurance companies or associated insurance companies at the time of the calculation of subsection (1), no. 5, the capital base of subsection (1), no. 5, a) shall be calculated before deductions for said companies' capital requirements when the capital requirements of said companies are already deducted under section 131(2), no. 1. (3) The addition under subsection (1), no. 5 for each subsidiary undertaking or each associated undertaking that is a financial undertaking may be no more than the amount deducted under section 131(2), no. 1 or 2 for the relevant subsidiary undertaking or associated undertaking. (4) The guarantee capital of insurance companies and lateral pension funds (nationwide occupational pension funds) shall not be reduced without the consent of the Danish FSA. The guarantee capital may be repaid in accordance with regulations stipulated in the articles of association. The Danish FSA may decide to require corresponding provisions to a general capital fund or another fund, which cannot be reduced without the authorisation of the Danish FSA. 131.-(1) The core capital shall be reduced by 1) proposed dividends, 2) intangible assets, 3) tax assets, cf. however section 130(1), no. 4, and 4) the current loss for the year in banks, mortgage-credit institutions, investment companies and investment management companies. (2) In addition to the deductions mentioned in subsection (1), the following deductions shall be made for insurance companies and lateral pension funds (nationwide occupational pension funds): 1) the proportion of the capital requirement of a subsidiary insurance company or an associated insurance company, which corresponds to the directly or indirectly owned proportion of the share capital and guarantee capital of said insurance company, 2) the proportion of the capital requirement of a bank, mortgage-credit institution, investment company or investment management company, which is a subsidiary company or an associated company, which corresponds to the directly or indirectly owned proportion of the share capital, 3) for directly and indirectly owned assets representing a risk in an individual undertaking, or a group of undertakings representing a joint risk: the amount by which the carrying EXCLUDING MINOR AMENDMENTS
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