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 Consolidation 176.-(1) Where an investment company, an investment management company, a bank, a mortgage-credit institution, or a financial holding company alone or with other undertakings within the group holds participating interests in a credit institution or a finance institution which is not a subsidiary undertaking, and the credit institution or finance institution is operated jointly with other undertakings which are not part of the group, a pro rata consolidation of the undertaking shall take place in accordance with sections 170-174 in respect of the group undertakings' share of the own funds and result of the undertaking in which said participating interest is held. (2) Where the liability of the investment company, investment management company, bank, mortgage-credit institution or financial holding company for the undertaking is not limited to the ownership interest or the voting rights held, full consolidation shall take place in accordance with sections 170-174. 177.-(1) Insurance companies and their subsidiary undertakings and undertakings which are temporarily operated by financial undertakings shall not be included in consolidation pursuant to sections 170-174. The Danish FSA may, however, stipulate that these undertakings shall be included. (2) Credit institutions or finance institutions which are subsidiary undertakings of insurance companies shall be included in consolidation pursuant to sections 170-172 if the parent undertaking is a bank, a mortgage-credit institution or an investment holding company, an investment management holding company, a bank holding company, or a mortgage-credit holding company. Exemptions 178.-(1) The Danish FSA may in special cases grant exemptions from the requirements stipulated in sections 170-174. (2) The Danish FSA may allow groups other than those specified in section 170(2) to include serial reserve funds in the capital base in accordance with the regulations in section 129 and 135. Separation, disposal and intra-group transactions 179. The Danish FSA may order a parent undertaking which owns equity investments in financial undertakings to separate such financial undertakings and finance institutions in a subgroup under a financial holding company where 1) the group is structured in a manner which entails that the parent undertaking need not meet the solvency requirement in section 170, 2) a member of the board of directors or the board of management of the parent undertaking falls within the scope of section 64(2), nos. 1, 2 and 4, or 3) the structure renders performance of the tasks of the Danish FSA difficult in other ways. EXCLUDING MINOR AMENDMENTS 180. The Danish FSA may order a financial holding company to dispose of equity investments in a financial undertaking where:
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 1) the parent undertaking or group does not comply with the solvency requirement in section 170, 2) a member of the board of directors or the board of management of the holding company does not have sufficient experience to carry out the business or position, or falls within the scope of section 64(2), nos. 1-2 and 4, or 3) the parent undertaking impairs appropriate and reasonable management of the financial undertaking. 181.-(1) The Danish FSA shall lay down more detailed regulations on transactions carried out between a financial undertaking and 1) undertakings directly or indirectly linked with said financial undertaking as subsidiary undertakings, associated undertakings or parent undertakings, or as the parent undertaking's associated undertakings and other subsidiary undertakings, 2) undertakings or persons linked to the financial undertaking through close links, cf. section 5(1), no. 17, or 3) undertakings not covered by nos. 1 and 2 where the majority of the members of the management of said undertakings are the same individuals or where the undertakings have joint management under an agreement or provisions in their articles of association. (2) Intra-group transactions carried out contrary to regulations laid down in subsection (1) shall be cancelled so that performance of all transactions is reversed where possible. This shall include termination of any collateralisation. Payments from the financial undertaking made in connection with intra-group transactions contrary to regulations laid down in pursuance of subsection (1) shall be returned with annual interest at an amount corresponding to the interest stipulated in section 5(1) and (2) of the ”lov om rente ved forsinket betaling m.v.” (interest on late payments etc. act). 182.-(1) A financial undertaking may not, without a license from the Danish FSA, have exposures within the same group except for exposures with subsidiary undertakings. (2) A financial undertaking furthermore may not have an exposure with undertakings or persons who exercise direct or indirect controlling influence in the financial undertaking, or who are controlled by undertakings or persons with such an influence. (3) The Danish FSA may allow exemptions from subsection (2). VI Annual report, audit and appropriation of profit for the year Part 13 Annual report, audit and appropriation of profit for the year General regulations regarding the annual report and audit EXCLUDING MINOR AMENDMENTS 183.-(1) Financial undertakings and financial holding companies shall prepare an annual report, which as a minimum shall comprise a management endorsement, a balance sheet, an income statement, notes, including a statement of accounting policies and a statement
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