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 (3) Write-down under subsection (1), no. 5 may only take place if new capital is subsequently injected into the financial undertaking so that the capital requirement is met, or if the financial undertaking closes down without losses for non-subordinated creditors. The subordinate loan 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. (4) The subordinate loan capital shall be reduced by 1) 25 per cent of the capital issued when less than 3 years and more than or exactly 2 years remain before maturity, 2) 50 per cent of the capital issued when less than 2 years and more than or exactly 1 year remains before maturity, 3) 75 per cent of the capital issued when less than 1 year remains before maturity, 4) the holding of own subordinate loan capital and own subordinate loan capital that serves as collateral for loans or guarantees reduced according to nos. 1-3. (5) Interest rate increases on subordinate loan capital may not enter into force before 3 years after the issuance. If one or more interest rate increases have been agreed upon, the subordinate loan capital shall mature at the time of the interest rate increase if the sum of interest rate increases exceeds 150 basis points less the swap spread, cf. section 132(2). (6) The Danish FSA shall approve any acquisition of own subordinate loan capital of more than 2 per cent of the capital issued. (7) In special cases, the Danish FSA may grant exemptions from the limitation in subsection (5), 2nd clause. 137.-(1) The Danish FSA may, after receiving an application, authorise that additions for possible extra premiums in mutual non-life assurance companies may be included under section 135(1), no. 6 if the premium is variable under the insurance contract so that the premium can be increased considering the risk development of the insurance portfolio, and if the policyholder may be charged for the extra premium during the year. (2) Amounts under subsection (1) may not be included before the end of the year in which the extra premium is chargeable. (3) Amounts under subsection (1) for which the policyholder has been charged cannot be included under section 135(1), no. 6. 138. For special bonus provisions (type A) under section 135(1), no. 7 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. 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 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) On a continuous basis, they are awarded a return on the basis of the interest rate set by the company with a view to making the return correspond to the possible market return on subordinate loan capital. 6) They may be used to cover all the company's losses and any non-subordinated claim against the company, when the own funds has been lost. 7) 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. 8) 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. 139.-(1) When calculating the capital base in banks, mortgage-credit institutions, investment companies and investment management companies the following shall be deducted: 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. If the insurance company does not have its registered office in Denmark, the capital requirement under the regulations of the home country shall be used. However, the capital requirement shall be no less than it would have been if the insurance company had had its registered office in Denmark. The deduction under the 1st clause shall be reduced by an amount corresponding to the difference between a) an amount corresponding to the proportion of the capital base of a subsidiary insurance company or an associated insurance company, 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 insurance company or the associated insurance company, when subordinate loan capital is included in the capital base of the subsidiary insurance company or the associated insurance company under section 135(1), no. 1. 2) Directly and indirectly owned equity investments in subsidiary undertakings and associated undertakings which are credit institutions, investment companies, investment management companies and finance institutions, cf. however the 2nd clause and subsections (4) and (5). Equity investments in finance institutions whose main activity is to acquire equity investments or negotiable mortgage deeds or to 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, credit institution, investment company or investment management company or an associated insurance company, credit institution, investment company or investment management company under no. 3 or section 131(2), no. 2, and indirectly owned equity investments which have been deducted or exempted by a subsidiary insurance company or an associated insurance company under section 131(5) shall not be deducted. EXCLUDING MINOR AMENDMENTS
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