Financial Business Act.pdf

More documents

Recommendations

Info

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 amount of the relevant assets exceeds a weighted sum of the capital requirements of the company, the capital requirements of its subsidiary insurance companies, and the capital requirement of other subsidiary undertakings under the supervision of the Danish FSA. The deduction shall not, however, be made for investments in subsidiary undertakings and for assets covered by section 162(1), nos. 1-8. The weighted sum shall be calculated thus: a. If the insurance company carries on direct life-assurance business, it is weighted by 75 per cent. Other insurance companies are weighted by 100 per cent. b. Subsidiary undertakings carrying out direct life-assurance business are weighted by 75 per cent of the ownership interest. Other subsidiary undertakings are weighted by the ownership interest, and 4) an amount corresponding to the difference between provisions for claims net of reinsurance parts of claims provisions for insurance classes 3-18 before discounting, and after discounting if the provisions for claims are discounted in order to take into account future investment returns. (3) For a financial undertaking, which is a subsidiary undertaking or an associated undertaking with its registered office outside Denmark, the capital requirement under the regulations of the home country shall be used with regard to subsection (1), nos. 1 and 2. However, the capital requirement shall be no less than it would have been if the registered office of the company or undertaking had been in Denmark. (4) In special cases and for a limited time-period, the Danish FSA may grant exemptions from the deduction in the core capital under subsection (2), no. 3. (5) Insurance companies shall deduct from the core capital directly and indirectly owned equity investments in subsidiary finance institutions and associated finance institutions, cf. however the 2nd and 3rd clauses. Equity investments in finance institutions, which are financial undertakings, and finance institutions whose principal activity is to acquire equity investments or negotiable mortgage deeds or carry out activities at their own expense with one or more of the instruments mentioned in annex 5 shall not be deducted. Indirectly owned equity investments which have been deducted by a subsidiary insurance company or an associated insurance company under the 1st clause, or which have been deducted by a subsidiary undertaking which is a credit institution, investment company or investment management company or an associated credit institution, investment company or investment management company under section 139(1), no. 2 or 3 shall not be deducted. The Danish FSA may in special cases grant exemptions from the deduction mentioned in the 1st clause. (6) The share of the capital requirement or the equity investments in subsidiary undertakings and associated undertakings shall not be deducted, cf. subsections (2) and (5) when the equity investments are acquired temporarily, and the acquisition takes place as part of a reconstruction. 132.-(1) Hybrid core capital is included in the capital base for banks, mortgage-credit institutions, investment companies and investment management companies, if the following conditions are met: EXCLUDING MINOR AMENDMENTS 1) The amount shall be paid to the bank, mortgage-credit institution, the investment company or investment management company. 2) The debt may not fall due at a predetermined time.
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 3) The debt may only fall due if the bank, mortgage-credit institution, investment company or investment management company enters into liquidation or is declared bankrupt. 4) The debt may only be repaid on the initiative of the bank, mortgage-credit institution, investment company or investment management company, and with the authorisation of the Danish FSA not earlier than 10 years after the payment, but the Danish FSA may, under special circumstances, authorise repayment not earlier than 5 years after the payment. 5) The lender's claim on the bank, mortgage-credit institution, the investment company or investment management company shall be subordinated all other non-subordinated debt and the capital mentioned in section 136. 6) The lender's claim on the bank, mortgage-credit institution, investment company or investment management company may not be covered by collateral provided by the bank, mortgage-credit institution, investment company or investment management company or the undertakings mentioned in section 181(1), or in any other way be secured priority over the remaining creditors of the bank, mortgage-credit institution, investment company or investment management company. 7) Payment of interest on the debt shall lapse if the bank, mortgage-credit institution, investment company or investment management company does not have distributable reserves in relation to the most recent annual report. 8) The interest rate may not be changed on the basis of a creditor's assessment of the bank, mortgage-credit institution, investment company or investment management company. 9) Payment of interest may be postponed if the capital base does not exceed the capital requirement at maturity. 10) Non-paid interest that has been postponed under no. 9 may only fall due if the capital requirement is met again. 11) The ultimate authority of the undertaking shall be permitted to reduce the hybrid core capital and non-paid interests if the own funds is lost and the share capital, guarantee capital or cooperative capital has been written off, or if the own funds in serial reserve funds in the mortgage-credit institution has been lost. 12) Agreements in connection with contracting of debt may not include a provision stipulating an increase in the interest rate of more than the highest of the following: a) 100 basis points less the swap spread, cf. subsection (2), and b) 50 per cent of the credit spread, cf. subsection (3), less the swap spread. 13) Agreements in connection with contracting of debt may only include one provision stipulating an increase in the interest rate. Said interest rate increase may not enter into force before 10 years after the issue of the debt. (2) The swap spread mentioned in subsection (1), no. 12, a) shall be fixed on the day of issue of the debt as the difference between the interest basis for the interest rate increase and the original interest basis of the issue of the debt. (3) The credit spread mentioned in subsection (1), no. 12, b) shall be fixed on the day of issue as the difference between the original interest rate of the issue and the original interest basis. (4) Acquisition of own hybrid core capital for ownership of more than 2 per cent of the capital issued shall be approved by the Danish FSA under subsection (1), no. 4. The holding of own hybrid core capital and own hybrid core capital that serves as collateral for loans or guarantees provided by the bank, mortgage-credit institution, investment company or investment management company shall not be included in the calculation of the capital base. EXCLUDING MINOR AMENDMENTS
Page 1 and 2: While this translation was carried
Page 49: While this translation was carried
Page 101 and 102:
While this translation was carried
Page 103 and 104:
Page 105 and 106:
Page 107 and 108:
Page 109 and 110:
Page 111 and 112:
Page 113 and 114:
Page 115 and 116:
Page 117 and 118:
Page 119 and 120:
Page 121 and 122:
Page 123 and 124:
Page 125 and 126:
Page 127 and 128:
Page 129 and 130:
Page 131 and 132:
Page 133 and 134:
Page 135 and 136:
Page 137 and 138:
Page 139 and 140:
Page 141 and 142:
Page 143 and 144:
Page 145 and 146:
Page 147 and 148:
Page 149 and 150:
Page 151 and 152:
Page 153 and 154:
Page 155 and 156:
Page 157 and 158:
Page 159 and 160:
Page 161 and 162:
Page 163 and 164:
Page 165 and 166:
show all

Financial Business Act.pdf

Create successful ePaper yourself

Delete template?

Save as template?