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
(6) Investment companies which are members of a stock exchange shall have exclusive right
to use the word ”børsmæglerselskab” in their name instead of ”fondsmæglerselskab”. Other
undertakings may not use names or expressions for their activities that may create the
impression that they are stockbroking companies.
(7) Investment companies shall use the word ”fondsmæglerselskab” or ”børsmæglerselskab”
in their name.
(8) A company, which applies for a license under subsection (1) and which is not licensed
under sections 7(1), 8(1), or 10(1) of this Act shall have a share capital of no less than EUR 1
million if the investment company wishes to be a member of a stock exchange, a central
securities depository, or a clearing centre, where the company carries on clearing and
settlement or wishes to carry out one or more of the services mentioned in annex 4, schedule
A, nos. 2, 4 and 5, and schedule B, no. 2. Other companies applying for a license under
subsection (1) shall have a share capital of no less than EUR 0.3 million.
(9) The Danish FSA shall lay down more detailed regulations on which natural or legal persons
in addition to those covered by subsections (2) and (3) may provide the services covered by
annex 4.
10.-(1) Undertakings, which carry out the activities mentioned in annex 6 are investment
management companies and shall be licensed as investment management companies
(2) Investment management companies may be granted a license under section 9(1) to carry
out the activities mentioned in annex 4, schedule A, nos. 3 and 5, as well as the activities
mentioned in schedule B nos. 5 and 6. The activities mentioned in annex 4, schedule A, no. 3
and schedule B, no. 5 may be carried on with the instruments mentioned in annex 5 nos. 1-9.
The activity dealt with in annex 4, schedule A, no. 5 may only be carried on with the
instruments mentioned in annex 5, no. 4. License to carry out the activities mentioned in
annex 4, schedule A, no. 5 and schedule B, no. 5 may only be granted in connection with a
license for the activity dealt with in annex 4, schedule A, no. 3. The license shall state the
activities in annex 4 it covers.
(3) The activities permitted under subsection (2) shall, however, not include permission to
carry out said activities using funds belonging to companies, except investment associations,
special-purpose associations, approved restricted associations, or hedge associations which are
affiliated with the investment management company.
(4) Investment management companies shall have exclusive right to manage investment
associations, special-purpose associations as well as restricted associations and hedge
associations, which have been approved under the Investment Associations and Special-
Purpose Associations as well as other Collective Investment Schemes etc. Act.
(5) An investment management company shall have a share capital corresponding to no less
than EUR 0.3 million. However, an investment management company, which is to be a
member of a stock exchange or holds and manages the instruments mentioned in annex 5, no.
4, including being member of a central securities depository, or a clearing centre where the
company participates in clearing and settlement, shall have a share capital corresponding to no
less than EUR 1 million.
EXCLUDING MINOR AMENDMENTS