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) Financial contracts that reduce the risk that assets do not cover insurance obligations shall be included in the value of assets at the value of such contracts. 4) Accrued interest receivable on assets covered by section 162(1), nos. 1-4, 6, 7, 9, and 11-14 shall be included in the value of the assets. 161. In pursuance of the provisions in this part of this Act, insurance provisions shall be calculated in accordance with the following regulations: 1) Provisions shall be calculated and adjusted regularly in accordance with the regulations laid down regarding annual reports in section 196. 2) Provisions shall be calculated gross of directly written insurance contracts. 3) The proportion of insurance provisions for indirect insurance contracts that is set off against reinsurance deposits with issuing insurance companies shall be deducted. 4) Up to half of the outstanding premiums receivable shall be deducted. 162.-(1) The following types of assets may be included in the assets covered by section 159(1): 1) Bonds or instruments of debt issued or guaranteed by central governments or regional authorities within Zone A, 2) Listed bonds issued by international organisations with a membership of no less than one Member State of the European Union. 3) Mortgage-credit bonds and other bonds issued in a country within the European Union or in a country with which the Community has entered into an agreement for the financial area, and which offers equivalent collateral. 4) Amounts receivable from credit institutions and insurance companies under public supervision in countries within Zone A, although not amounts receivable that are subordinated other creditors, as well as other amounts receivable that are guaranteed by credit institutions or insurance companies under public supervision in countries within Zone A 5) Land, residential property, offices and commercial property, as well as other property, the value of which is independent of any specific commercial use. 6) Loans secured by registered, mortgaged property covered by no. 5 for an amount of up to 80 per cent of the most recent property valuation for residential property and up to 60 per cent for other property. 7) Loans secured on own life-assurance policies within the repurchase value of these policies. 8) Units in investment undertakings subject to Community law and units in placement associations, money-market associations and funds of funds as well as restricted associations or divisions hereof, which in their articles of association have provisions on risk-spreading corresponding to those applicable for investment associations, placement associations, money-market associations or funds of funds, cf. the Investment Associations and Special-Purpose Associations as well as other Collective Investment Schemes etc. Act. 9) Other bonds and loans listed on a stock exchange in countries within Zone A. 10) Equity investments listed on a stock exchange in countries within Zone A. 11) Property not covered by no. 5, as well as loans secured by registered, mortgaged property not covered by no. 6. 12) Equity investments and other securities listed on a stock exchange in countries outside Zone A. 13) Unlisted equity investments, including equity investments traded on an authorised market place, cf. section 40(1) of the Securities Trading, etc. Act, or another regulated 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 market that is publicly recognised, open regularly, and open to the public, as well as other loans and securities not covered by nos. 1-12. 14) Reinsurance contracts and amounts receivable from reinsurance companies under public supervision in countries within Zone A or reinsurance companies under public supervision, which have achieved a rating by a recognised rating undertaking corresponding to no less than investment grade. (2) In a subsidiary undertaking, the activities of which are limited to making and managing investments in assets covered by subsection (1), the assets of the subsidiary undertaking within the value of the equity investments in and any loans to the subsidiary undertaking may be treated as assets under subsection (1). If the subsidiary undertaking is not fully owned, its assets shall be included at a proportionate value corresponding to the proportion of the own funds owned. (3) If the insurance company has a subsidiary company which carries on direct life-assurance business with the authority of this Act, the assets of the subsidiary company may be treated as assets under subsection (1). The part of the assets of the subsidiary company which is not used to cover the subsidiary company's insurance provisions, and an amount corresponding to the capital requirements of the subsidiary company shall be of such a type and composition that they can be included in the assets of the parent company to cover the insurance provisions according to the provisions of this part. The total assets of the subsidiary company may be included as part of the assets to cover insurance provisions at a value no greater than that which corresponds to the value of the parent company's shares in and any loans to the subsidiary company, after deduction of the capital requirements of the subsidiary company. If the subsidiary is not fully owned, its assets shall be included at a proportionate value corresponding to the proportion of the own funds owned. (4) Subsection (3) may apply correspondingly to other subsidiary companies, which are insurance companies, with a license under this Act. The assets of such a subsidiary company may, however, be included as part of the assets at a value corresponding to no more than 5 per cent of the insurance provisions of the parent company. 163.-(1) The following limits concerning insurance provisions shall apply for including assets covered by section 159(1): 1) Assets covered by section 162(1), nos. 8-14 may total no more than 70 per cent. 2) Assets covered by section 162(1), no. 13, cf. however subsection (2), may be included at no more than 20 per cent. 3) Assets covered by section 162(1), no. 12 may comprise a total of no more than 10 per cent. 4) Loans covered by section 162(1), no. 13 may comprise a total of no more than 2 per cent. 5) Assets covered by section 162(1), nos. 4, 6, 8-10, 12 and 13, issued or guaranteed by banks, mortgage-credit institutions, insurance companies, branches of investment undertakings, as well as placement associations, money-market associations, funds of funds and restricted associations which for each undertaking and branch of an association comprise more than 5 per cent of the insurance provisions, may total no more than 40 per cent. EXCLUDING MINOR AMENDMENTS (2) Other loans and securities covered by section 162(1), no. 13, which are not traded on an authorised market place or on another regulated market that is publicly recognised, open
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