saxo-bank-annual-report-2015

The introduction of final standards approved by the EU
may have an impact on the calculated LCR. In addition, the
DFSA plans to issue a change in the Danish Supervisory Diamond
liquidity requirements in 2016 to align it with the
LCR measure. This change may require the Bank to hold a
LCR above the minimum requirement according to CRR.
NSFR is planned to be phased to a binding requirement in
2018, exact timing and potential transition rules will be decided
by the EU. The calibration of the final regulation may
have an impact on the Group’s future funding structure.
Specification on the Bank’s and the Group’s LCR, and Asset
Encumbrance are disclosed in the Risk Report 2015 and is
available at www.saxobank.com/investor-relations.
The Group is also subject to a Danish regulatory liquidity requirement
in the Danish Business Act, which is less restrictive
than the LCR requirement. The current Danish liquidity requirement
in the Danish Business Act is expected to be phased
out by the end of 2016 due to the transition of the LCR.
Governance
CRD IV sets requirements concerning corporate governance
arrangements and processes with the aim to ensure
the effectiveness of risk oversight by Boards, improving the
status of the risk management function and ensuring effective
monitoring by supervisors of risk governance. The
Group’s current implementation of governance is disclosed
in the Risk Report 2015 according to CRR.
The Danish Bankers Association has published recommendations
on institutions’ Corporate Governance. The Group
has disclosed the implementation status on these recommendations
in the report “The Bankers Association, Corporate
Statement”. This report is available at
www.saxobank.com/investor-relations.
Remuneration
According to CRD IV and Danish Legislation, the Group is
required to implement a remuneration policy for staff
members whose professional activities have material impact
on the institution’s risk profile. This policy shall ensure
that remuneration is consistent with sound and effective
risk management and provides an incentive for prudent
and sustainable risk taking. Remuneration Regulation sets
limits on the relationship between the variable (or bonus)
component of remuneration and the fixed component (or
salary), requirements to remuneration reporting and disclosure
requirements. The Remuneration Report Saxo Bank
2015 is available at www.saxobank.com/investor-relations.
EU data protection reform
In December 2015, the EU Commission agreed on a Data
Protection Regulation to enable people to better control
their personal data and a Data Protection Directive for the
police and criminal justice sector with the aim to ensure
that the data of victims, witnesses and suspects of crimes
are duly protected in the context of a criminal investigation
or a law enforcement action. The final regulation is expected
to be issued in 2016 and expected to become applicable
in 2018.
Supervisory Diamond
The Danish FSA apply a number of specific risk indicators
and threshold values to banks in Denmark, in a Supervisory
Diamond. Saxo Bank A/S’s compliance with the specific risk
indicators is disclosed in a Supervisory Diamond report,
and is available at www.saxobank.com/investor-relations.
Other Forthcoming Regulation
The regulatory landscape is expected to continue to undergo
changes over the forthcoming years.
For example, the Basel Committee has published several
papers including fundamental review of the trading book
and market risk framework, revision of the operational risk
approach and revision of credit risk. Depending on the final
calibration of the regulation and implementation in the
EU, this may have impact on the Group’s future level of
Risk Exposure Amounts.
Additional information about this can be found in the
Group’s Risk Report 2015 in the section “Regulatory Landscape”.
The Risk Reports are available at www.saxobank.
com/investor-relations.
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