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) ”Participating interests” shall mean the direct or indirect ownership by an undertaking of 20 per cent or more of the voting rights or capital of another undertaking. (3) ”Qualifying interest” shall mean direct or indirect ownership of 10 per cent or more of the capital or voting rights or ownership of an interest which provides the opportunity for exercising significant influence on the management of the financial undertaking or the financial holding company. (4) ”Equity investment” shall mean an interest in a limited company (shares), in a limited liability company (shares) and in the own funds in other undertakings. (5) When specifying and calculating voting rights and entitlements to appoint or remove members of management organs, rights owned by the parent undertaking as well as its subsidiary undertakings shall be included in the calculations. (6) When specifying and calculating voting rights within a subsidiary undertaking, voting rights associated with equity investments owned by the undertaking itself or its subsidiary undertakings shall be excluded from the calculations. (7) For the purposes of this Act: 1) ”Solvency requirements”, ”minimum capital requirements” and “solvency needs” shall be interpreted in accordance with sections 124-125. 2) ”Capital requirements” shall be interpreted in accordance with section 127. 3) ”Capital base” shall be interpreted in accordance with section 128. 4) ”Core capital” shall be interpreted in accordance with sections 129-131. 5) ”Additional capital” shall be interpreted in accordance with section 135. 6) ”Hybrid core capital” shall be interpreted in accordance with section 132. 7) ”Subordinate loan capital” shall be interpreted in accordance with section 136. 8) ”Special bonus provisions” shall be interpreted in accordance with sections 134 and 138. 9) ”Members' accounts” shall be interpreted in accordance with section 133. 10) ”Risk-weighted items” shall be interpreted in accordance with section 142. (8) A parent undertaking which has been covered by subsection (1), no. 10, (a) shall continue to be regarded as a financial holding company if no less than 35 per cent of the balance sheet total of the group and the associated companies of the parent undertaking pertains to the financial sector. The 1st clause shall not, however, apply if the balance sheet total mentioned in the 1st clause has been below 40 per cent for three consecutive years. 6. The Minister for Economic and Business Affairs shall lay down more detailed regulations on the use of digital communication, including electronic signatures, when exchanging information in accordance with this Act between citizens and undertakings on the one hand and the public administration on the other hand, as well as storage of information. EXCLUDING MINOR AMENDMENTS II Licenses, exclusive right, area of activities, and foreign institutions Part 3 Licenses, exclusive right, etc.
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 Licenses for banks, mortgage-credit institutions, investment companies, investment management companies, and insurance companies 7.-(1) Undertakings that carry out activities comprising receiving from the public deposits or other funds to be repaid as well as activities comprising granting loans at their own expense but not on the basis of issuing mortgage-credit bonds, cf. section 8(3), shall be licensed as banks. Banks may only carry out the activities mentioned in annex 1 as well as activities according to sections 24-26. (2) Banks may be licensed according to section 9(1) to carry out the activities mentioned in annex 4, schedule A, nos. 1 and 3. (3) Banks, the State, Danmarks Nationalbank (Denmark’s central bank), foreign credit institutions which fulfil the conditions in section 1(3) and section 30 or 31 of this Act, issuers of electronic money, and savings undertakings shall have exclusive right to receive from the public deposits or other funds to be repaid. Mortgage-credit institutions, DSF (Danmarks Skibskreditfond), and KommuneKredit may, however, receive other funds to be repaid. Undertakings which do not receive deposits from the public may receive other funds to be repaid provided this activity or lending activities are not a significant part of the normal activities of the undertaking. (4) Banks, the State, and foreign credit institutions that fulfil the conditions in section 1(3), and section 30 or 31 of this Act shall have exclusive right to approach the public as recipients of deposits. (5) Banks have exclusive right to use the words ”bank”, ”sparekasse” or ”andelskasse” in their name. Other undertakings established by law, except for banks, may not use names or expressions for their activities that create the impression that they are a bank. A bank may not describe its activities in a way that may create the impression that it is Denmark's central bank. (6) Banks shall use the word ”bank”, ”sparekasse” or ”andelskasse” in their name, cf. however subsection 7. Section 153(2)-(6) of the Public Companies Act shall apply correspondingly to savings banks and cooperative savings banks. (7) A limited company which, pursuant to the regulations in sections 207-213, takes over a cooperative savings bank, an affiliation of cooperative savings banks, or a savings bank shall have the right to describe itself as a cooperative savings bank or a savings bank respectively, and the word ”aktieselskab”, or an abbreviation derived herefrom, shall be added to the name. (8) An undertaking which applies for a license under subsection (1) shall have a share capital of at least EUR 8 million. 8.-(1) Undertakings which grant loans against registered mortgages in real property on the basis of issuing mortgage-credit bonds shall be licensed as mortgage-credit institutions. Mortgage-credit institutions may only carry out activities as mentioned in annex 3 and activities under sections 24-26. EXCLUDING MINOR AMENDMENTS (2) Mortgage-credit institutions may be licensed under section 9(1) to carry out the activities mentioned in annex 4, schedule A, no. 1 regarding mortgage-credit bonds and instruments derived herefrom.
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