Financial Business Act.pdf

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