Regulatory Alerts2024-01-09
Act on a Depositor and Investor Guarantee Scheme
The Danish Ministry of Industry, Business and Financial Affairs issued this regulation to establish the Depositor and Investor Guarantee Fund (Garantiformuen), administered by Financial Stability, to protect depositors and investors in Danish financial institutions. The Fund is divided into four specialized sections covering credit institutions, mortgage credit institutions, investment firms, and restructuring, with mandatory contributions from member institutions based on risk profiles and covered deposits. It defines coverage limits of up to 100,000 euros for deposits and 20,000 euros for investor claims, while outlining procedures for bail-in, resolution, and the recovery of funds through extraordinary levies if necessary.
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