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 (5) Write-down under subsection (1), no. 11 may only take place if new capital is subsequently injected into the bank, mortgage-credit institution, investment company or investment management company so that the capital requirement is met, or if the bank, mortgage-credit institution, investment company or investment management company closes down without losses for the non-subordinated creditors. The hybrid core capital and non-paid interest may only be written down by an amount that has been approved by the external auditors and the Danish FSA in advance. (6) In special cases, the Danish FSA may grant exemptions from the limit in subsection (1), no. 12, a). 133. Member accounts may be included under section 130(1), no. 2 if the following conditions are met in the articles of association: 1) In case of liquidation or bankruptcy, amounts shall not be repaid before the entire remaining debt has been repaid. 2) In other cases, amounts shall only be repayable if the capital base is not thereby reduced to an amount less than the capital requirement. 3) Repayment caused by other factors than cessation of membership may only be made when the Danish FSA is notified hereof no less than one month in advance. Said repayment may be denied by the Danish FSA. 4) Changes in the provisions of the articles of association regarding member accounts shall be approved by the Danish FSA. 134. For special bonus provisions (type B) under section 130(1), no. 3 that form part of the insurance provisions, the following shall apply: 1) They are, for all or part of the company's insurance contracts, built up of funds from the insurance contracts' share of the realised results, cf. section 20(1), no. 3. 2) They are attached to the insurance contracts, individually or collectively, in such a way that the individual insurance's share with related profit, cf. no. 5, may be calculated at any time. 3) They are not, as an amount, part of the portfolio of insurance contracts when calculating the proportion of the realised results, cf. section 20(1), no. 3, to be added to said portfolio. 4) Transfer to the individual insurance contracts of the share attached to the insurance shall take place no later than at the time of payment of benefits under the insurance. 5) They shall be granted the same proportional return as the return on equity before taxation irrespective of said return being negative or positive. 6) The individual share and the relative collective share, cf. no. 2, may be included at the time of cancellation of the insurance, and they shall be fully included on calculation of surrender values as well as on transfers from one company to another in connection with transition to another employment, cf. section 20(1), no. 7. Said share shall be relative to the share which the insured party has contributed to accumulating. Special bonus provisions, however, may only be included if the company meets the solvency requirement in section 248(3), no.3. 7) The company shall comply with the disclosure requirement resting upon companies listed on the stock exchange under section 27(1) of the Securities Trading, etc. Act. EXCLUDING MINOR AMENDMENTS 135.-(1) The additional capital shall consist of 1) subordinate loan capital, cf. section 136,
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) revaluation reserves for banks, mortgage-credit institutions, investment companies and investment management companies, 3) hybrid core capital, cf. section 132, that is not included in the core capital, 4) the part of the serial reserve funds in mortgage-credit institutions in series with a repayment obligation that corresponds to the requirement in section 124(6), 5) unpaid guarantee capital for the Danish Agricultural Mortgage Bank (DLR). 6) addition for possible adjustment premium in mutual non-life assurance companies, cf. section 137, and 7) special bonus provisions (type A) in life-assurance companies and lateral pension funds (nationwide occupational pension funds) fulfilling the conditions in section 138. (2) The additional capital shall not be included for banks, mortgage-credit institutions, investment companies and investment management companies at more than 100 per cent of the core capital after deductions. (3) For insurance companies and lateral pension funds (nationwide occupational pension funds), the additional capital may be included at an amount corresponding to the lower of 1) 100 per cent of the core capital after deductions, 2) half of the capital requirement. (4) The subordinate loan capital with a fixed term in insurance companies and lateral pension funds (nationwide occupational pension funds) shall not exceed an amount corresponding to the lower of 1) one third of the core capital after deductions, 2) one quarter of the capital requirement. 136.-(1) Subordinate loan capital shall be included in the capital base if the following conditions are met: 1) The lender's claim is subordinated all other non-subordinated debt. 2) The amount is paid. 3) Repayment before maturity may not take place on the initiative of the lender or without the authorisation of the Danish FSA. 4) The amount may only fall due before the maturity date agreed if the financial undertaking enters into liquidation or is declared bankrupt. 5) The ultimate authority of the undertaking is permitted to reduce the subordinate loan 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 mortgage-credit institutions has been lost. 6) Payment of interest may be postponed if the capital base does not exceed the capital requirement at maturity. 7) Non-paid interests that have been postponed under no. 6 may only fall due if the capital requirement is met again or if the loan matures. 8) The following applies to insurance companies and lateral pension funds (nationwide occupational pension funds): a) the original term is no less than 5 years and b) changes in the loan agreement are approved by the Danish FSA. EXCLUDING MINOR AMENDMENTS (2) Authorisation under subsection (1), no. 3 shall be subject to the capital base after repayment not being smaller than the capital requirement.
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