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
(3) Mortgage-credit institutions and foreign credit institutions which fulfil the conditions for
this in the Mortgage-Credit Loans and Mortgage-Credit Bonds etc. Act shall have exclusive
right to issue mortgage-credit bonds.
(4) Securities other than mortgage-credit bonds must not carry this name or a name that may
create the impression that they are mortgage-credit bonds.
(5) Mortgage-credit institutions shall have exclusive right to use words such as
”realkreditinstitut”, ”realkreditaktieselskab”, ”kreditforening”, or ”realkreditfond” in their name.
KommuneKredit may, however, continue to use the description ”Kreditforeningen af
Kommuner i Danmark”. Other undertakings may not use names or descriptions for their
activities that may create the impression that they are mortgage-credit institutions.
(6) Mortgage-credit institutions, which have been converted into limited companies and which
have hitherto used words such as ”kreditforening”, ”realkreditfond”, or ”reallånefond” in their
name shall add the word ”aktieselskab” or an abbreviation derived herefrom after their name.
(7) An undertaking seeking a license under subsection (1) shall have a share capital of no less
than EUR 8 million.
9.-(1) Undertakings that carry out for a third party the activities mentioned in annex 4,
schedule A are securities dealers and shall be licensed as securities dealers, cf. however
section 7(1) and section 8(1). Securities dealers may in addition carry out one or more of the
activities mentioned in annex 4, schedule B. License to carry out one or more of the activities
mentioned in annex 4, schedule B may only be granted in connection with a license for the
activities mentioned in annex 4, schedule A. The license shall state the activities in annex 4 it
covers.
(2) Securities dealers without a license under section 7(1), section 8(1), or section 10(1) of
this Act are investment companies. Investment companies may only carry out activities as
mentioned in annex 4.
(3) Securities dealers, Danmarks Nationalbank (Denmark’s central bank), the Danish Agency
for Governmental Management, as well as foreign credit institutions and investment firms,
which fulfil the conditions in section 1(3) and section 30, 31, or 33, shall have exclusive right
to carry out the activities mentioned in annex 4, schedule A with the instruments (securities)
mentioned in annex 5 and with the securities mentioned in section 2, no. 12 of the Securities
Trading, etc. Act on a commercial basis for third parties, cf. however section 7(1) and section
8(1). Securities dealers as well as foreign credit institutions and investment firms, which are
covered by section 1(3) and which fulfil the conditions in section 30, 31, or 33, shall
furthermore have exclusive right to administer and carry out foreign-exchange spot
transactions for investment purposes with a view to earning a profit for investors from changes
in the exchange rate on a commercial basis for third parties.
(4) The provision in subsection (3) shall not apply when an undertaking carries on trade and
procurement of securities that the undertaking itself has issued.
EXCLUDING MINOR AMENDMENTS
(5) Securities dealers which are not licensed according to section 7(1), section 8(1), or section
10(1) of this Act shall have exclusive right to use the word ”fondsmæglerselskab” in their
name. Other undertakings may not use names or descriptions for their activities that may
create the impression that they are investment companies.