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 3) Equity investments in other credit institutions and finance institutions that constitute more than 10 per cent of the share capital, guarantee capital or cooperative capital of said credit institutions or finance institutions, which are not covered by no. 2, cf. however subsections (4) and (5). Furthermore, the subordinated debt of banks, mortgage-credit institutions, investment companies and investment management companies in said institutions shall be deducted. 4) An amount corresponding to the sum of equity investments and subordinated debt in other credit institutions and finance institutions that are not covered by no. 2 or 3 exceeding 10 per cent of the capital base before deductions under nos. 1, 2, 3, 5 and 6, cf. however subsections (4) and (5). 5) An amount corresponding to the sum of equity investments in another undertaking or undertakings in the same group and charged equity investments in another undertaking not covered by nos. 1-4 exceeding 15 per cent of the capital base after deductions under nos. 1-4, cf. however subsections (5) and (6). 6) An amount corresponding to the sum of qualifying interests in other undertakings that are not covered by nos. 1-5 exceeding 60 per cent of the capital base after deductions under nos. 1-4, cf. however subsections (5) and (6). (2) The reduction in the deduction mentioned in subsection (1), no. 1 may not, however, exceed the deduction made under the 1st clause. (3) The capital base in subsection (1), no. 1, 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 capital base of the owning undertaking. If the relevant subsidiary insurance company or associated insurance company owns subsidiary insurance companies or associated insurance companies at the time of the calculation of subsection (1), no. 1 a) and b), the capital base of section 130(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. Moreover, the capital base in subsection (1), no. 1, a) shall be calculated before deductions under section 131(2), no. 2 if the relevant undertakings are included in the consolidation under part 12. (4) Equity investments in credit institutions or finance institutions shall not be deducted from the capital base when the equity investments are acquired temporarily, and the acquisition takes place as part of a reconstruction. The proportion of the capital requirement of a subsidiary insurance company or an associated insurance company, cf. subsection (1), no. 1, shall not be deducted either if the undertaking is acquired temporarily, and the acquisition takes place as part of a reconstruction. (5) Equity investments in credit institutions and finance institutions which, together with the bank, mortgage-credit institution, investment company or investment management company, are included in consolidation, cf. part 12, shall not be deducted from the capital base. This shall also apply to subordinated debt in credit institutions and finance institutions covered by the consolidation. (6) When calculating the amounts mentioned in subsection (1), nos. 5 and 6, share trading activities etc. shall also be included. EXCLUDING MINOR AMENDMENTS 140.-(1) In mortgage-credit institutions, the capital base requirement for series with a repayment obligation opened before 1 January 1973 may be met with the capital mentioned in section 135(1), no. 4.
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 (2) In series with a repayment obligation opened before 1 January 1973, the capital mentioned in section 129(1), no. 9, which is not included in covering the requirement for the capital base of the series, may be included as core capital when meeting the requirement for capital base for the mortgage-credit institution in general. 141.-(1) The assets of associations that the investment management company is licensed to manage shall be included in said investment management company's portfolio, cf. section 125(2). (2) Portfolios that the investment management company has been assigned to manage under the provisions regarding delegation shall not be included in the company's portfolio, cf. section 125(2). 142.-(1) Risk-weighted items in banks, mortgage-credit institutions, investment companies and investment management companies shall mean items with a credit risk, share price exposure, interest rate risk, currency risk, commodities risk, etc. (2) Risk-weighted items in insurance companies and lateral pension funds (nationwide occupational pension funds) shall mean items that are adjusted according to insurance type, term, special conditions in reinsurance, average rating bases, administration costs, and claims expenses as well as other items in the risk sum. 143. The Danish FSA shall lay down more detailed regulations for 1) calculation of the risk-weighted items, 2) reporting of the risk-weighted items, the capital requirement, the solvency need, cf. section 124(3) and section 125(5), and the capital base, 3) calculation of share trading activities etc., 4) calculation of companies' fixed costs, cf. section 125(4), 5) conditions for reduction of the minimum capital requirement, cf. section 126(4), and 6) calculation of the capital base as a consequence of the Regulation of the European Parliament and of the Council on the application of international accounting standards. Special regulations regarding compulsory redemption for banks 144.-(1) In a bank that does not meet the solvency requirement of section 124(1), no. 1 and (4) and where the Danish FSA has set a time limit under section 225(1) and (3), the board of directors may with a simple majority, upon the request of a shareholder owning 70 per cent or more of the bank's shares, decide to redeem the shares of the other shareholders in the bank. This shall also apply to cases where the request is made by a shareholder who, after a capital injection which is part of a reconstruction plan, owns 70 per cent or more of the shares in the bank, even though the bank, as a consequence of the capital injection, again meets the solvency requirement of section 124(1), no. 1 and (4). The resolution made by the board of directors regarding compulsory redemption of shares shall be approved by the Danish FSA. Share redemption shall be carried out no later than 30 days after the request mentioned in the 1st clause. EXCLUDING MINOR AMENDMENTS (2) The minority shareholders covered by such a resolution regarding share redemption, cf. subsection (1), shall be requested in writing to transfer their shares to the shareholder mentioned in subsection (1) no later than 3 days after receipt of said request. Said request shall include information about the terms and conditions for the redemption and the
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