Financial Business Act.pdf
Financial Business Act.pdf
Financial Business Act.pdf
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
While this translation was carried out by a professional translation agency, the text<br />
is to be regarded as an unofficial translation based on the latest official Consolidated<br />
<strong>Act</strong> no. 286 of 4 April 2006. Only the Danish document has legal validity.<br />
October 2006, GlobalDenmark Translations<br />
(2) Funds in the mortgage-credit institution in general may not be paid in in series as hybrid<br />
core capital or subordinate loan capital unless hybrid core capital or subordinate loan capital<br />
for no less than a corresponding amount has been taken up in the mortgage-credit institution<br />
in general.<br />
155. Guarantees that are not mentioned in the Mortgage-Credit Loans and Mortgage-Credit<br />
Bonds etc. <strong>Act</strong> shall not be subject to section 145(6).<br />
Special regulations for investment companies and investment management companies<br />
regarding the placement of funds and liquidity<br />
156.-(1) Liquidity, cf. section 152(2), for investment companies and investment management<br />
companies shall be appropriate.<br />
(2) The Danish FSA may require an increase in liquidity if liquidity is not deemed appropriate.<br />
(3) The Danish FSA shall stipulate a time limit for fulfilment of the requirement under<br />
subsection (2).<br />
157. Investment companies without a license to trade on their own account, cf. annex 4, part<br />
A, no. 2, and investment management companies may place their capital base in shares and<br />
bonds that are listed on a stock exchange or traded on another regulated market as well as<br />
units in investment associations, special-purpose associations and restricted associations,<br />
except for SME associations, cf. section 109 of the Investment Associations and Special-<br />
Purpose Associations as well as other Collective Investment Schemes etc. <strong>Act</strong>.<br />
Special regulations for insurance companies and pension funds regarding the placement of<br />
funds and liquidity<br />
158. The funds under the charge of an insurance company or a pension fund shall be invested<br />
in an appropriate manner, and a manner advantageous for the insured parties, such that there<br />
is adequate security that the company can meet its obligations at all times.<br />
159.-(1) Insurance companies and pension funds shall have a group of assets, the total value<br />
of which at all times corresponds to the value of the total insurance provisions.<br />
(2) The assets covered by subsection (1) shall be selected so that, viewed in relation to the<br />
nature of the company's insurance contracts with regard to security, return, and liquidity, they<br />
are of a suitable type and composition to ensure that the insured parties are satisfied. There<br />
may not be disproportionate dependence on a specific category of assets, a specific investment<br />
market, or a specific investment.<br />
160. In pursuance of the provisions in this part of this <strong>Act</strong>, assets shall be calculated in<br />
accordance with the following regulations:<br />
EXCLUDING MINOR AMENDMENTS<br />
1) Assets shall be calculated and adjusted regularly in accordance with the regulations laid<br />
down regarding annual reports in section 196.<br />
2) Any assets subject to a charge shall be deducted, and loans may only be included at a<br />
value net of obligations that may be due to the borrower.
Change language