Order on the Obligation of Financial Undertakings to Publish the Danish Financial Supervisory Authority's Assessment of the Undertaking

Order on the Obligation of Financial Undertakings to Publish the Danish Financial Supervisory Authority's Assessment of the Undertaking and Other Matters

Pursuant to Section 347a and Section 373, paragraph 4, of the Act on Financial Business, cf. Consolidation Act No. 1013 of 21 August 2024, Section 270, paragraph 1, and Section 287 of the Act on Stockbroker Companies and Investment Services and Activities, cf. Consolidation Act No. 232 of 1 March 2024, Section 165, paragraph 1, and Section 190, paragraph 5, of the Act on Investment Funds and Other Matters, cf. Consolidation Act No. 1163 of 13 November 2024, Section 53 and Section 78, paragraph 6, of the Money Laundering Act, cf. Consolidation Act No. 807 of 21 June 2024, Section 140 and Section 152, paragraph 7, of the Act on Payments, cf. Consolidation Act No. 53 of 18 January 2023, Section 243 and Section 255, paragraph 1, of the Act on Capital Markets, cf. Consolidation Act No. 198 of 26 February 2024, Section 20 and Section 26, paragraph 4, of the Act on Financial Advisors, Investment Advisors and Mortgage Credit Intermediaries, cf. Consolidation Act No. 1095 of 21 October 2024, Section 162 and Section 190, paragraph 5, of the Act on Managers of Alternative Investment Funds and Other Matters, cf. Consolidation Act No. 231 of 1 March 2024, Section 10l and Section 14a, paragraph 2, of the Act on the Employees' Price Adjustment Fund, cf. Consolidation Act No. 1109 of 9 October 2014, as amended by Act No. 1490 of 23 December 2014, Section 73a of the Act on Work Injury Insurance, cf. Consolidation Act No. 919 of 25 June 2024, Section 27l and Section 32a, paragraph 2, of the Act on the Labour Market Supplementary Pension, cf. Consolidation Act No. 1142 of 1 November 2024, Section 15b and Section 22, paragraph 4, of the Act on Real Estate Credit Companies, cf. Consolidation Act No. 285 of 1 March 2023, Section 301 and Section 316, paragraph 1, of Act No. 718 of 13 June 2023 on Insurance Business, Section 35 and Section 42, paragraph 7, of the Act on Insurance Intermediation, cf. Consolidation Act No. 806 of 21 June 2024, Section 23 and Section 30, paragraph 8, of Act No. 450 of 24 April 2019 on Consumer Loan Companies, as amended by Act No. 801 of 9 June 2020, Section 22 of Act No. 405 of 25 April 2023 on the Mortgage Credit Association of Municipalities and Regions in Denmark, cf. Section 347a of the Act on Financial Business, and Section 25, paragraph 3, of Act No. 405 of 25 April 2023 on the Mortgage Credit Association of Municipalities and Regions in Denmark, and Section 31, paragraph 2, and Section 41, paragraph 7, of Act No. 1534 of 12 December 2023 on Credit Service Companies and Credit Buyers, it is hereby ordered:

Scope of Application

Section 1. This Order applies to:

1. Credit institutions, real estate credit institutions, undertakings designated as operators of digital financial infrastructure pursuant to Section 333 of the Act on Financial Business, investment management companies, and CO2 quota issuers under supervision pursuant to the Act on Financial Business.
2. Legal and natural persons who have obtained permission pursuant to Sections 332a-332c of the Act on Financial Business.
3. Crowdfunding service providers under supervision pursuant to the Act on Financial Business.
4. Danish UCITS under supervision pursuant to the Act on Investment Funds and Other Matters.
5. Undertakings under supervision pursuant to the Money Laundering Act.
6. Undertakings under supervision pursuant to the Act on Payments.
7. Operators of a regulated market, central counterparties (CCPs), central securities depositories (CSDs), and providers of data reporting services under supervision pursuant to the Act on Capital Markets.
8. Financial advisors, investment advisors, and mortgage credit intermediaries under supervision pursuant to the Act on Financial Advisors, Investment Advisors and Mortgage Credit Intermediaries.
9. Managers of alternative investment funds and depositaries under supervision pursuant to the Act on Managers of Alternative Investment Funds and Other Matters.
10. Stockbroker companies under supervision pursuant to the Act on Stockbroker Companies and Investment Services and Activities.
11. Undertakings under supervision pursuant to the Act on Insurance Business.
12. The Employees' Price Adjustment Fund under supervision pursuant to the Act on the Employees' Price Adjustment Fund.
13. Labour Market Occupational Insurance under supervision pursuant to the Act on Work Injury Insurance.
14. The Labour Market Supplementary Pension under supervision pursuant to the Act on the Labour Market Supplementary Pension.
15. Real estate credit companies under supervision pursuant to the Act on Real Estate Credit Companies.
16. Insurance intermediaries under supervision pursuant to the Act on Insurance Intermediation.
17. Consumer loan companies under supervision pursuant to the Act on Consumer Loan Companies.
18. KommuneKredit under supervision pursuant to the Act on the Mortgage Credit Association of Municipalities and Regions in Denmark.
19. Credit service companies under supervision pursuant to the Act on Credit Service Companies and Credit Buyers.
20. Danmarks Skibskredit under supervision pursuant to the Act on a Ship Financing Institute.

Paragraph 2. This Order does not apply to supervisory measures communicated to undertakings mentioned in Section 1, which are published pursuant to Section 354a, paragraph 1, and Section 354e, paragraph 1, of the Act on Financial Business, Section 176, paragraph 1, of the Act on Investment Funds and Other Matters, Section 47, paragraph 2, cf. Section 55, paragraph 1, of the Money Laundering Act, Section 138, paragraph 1, of the Act on Payments, Section 241, paragraph 1, of the Act on Capital Markets, Section 18, paragraph 1, of the Act on Financial Advisors and Mortgage Credit Intermediaries, Section 171, paragraph 1, of the Act on Managers of Alternative Investment Funds and Other Matters, Sections 277 and 285 of the Act on Stockbroker Companies and Investment Services and Activities, Section 291 of the Act on Insurance Business, Section 10g, paragraph 1, of the Act on the Employees' Price Adjustment Fund, Section 76b, paragraph 1, of the Act on Work Injury Insurance, Section 27g, paragraph 1, of the Act on the Labour Market Supplementary Pension, Section 15, paragraph 2, of the Act on Real Estate Credit Companies, Section 33, paragraph 1, of the Act on Insurance Intermediation, Section 21, paragraph 1, of the Act on Consumer Loan Companies, Section 22 of the Act on the Mortgage Credit Association of Municipalities and Regions in Denmark, and Section 31, paragraph 1, of the Act on Credit Service Companies and Credit Buyers.

Publication

Section 2. Following each inspection of an undertaking mentioned in Section 1, paragraph 1 (hereinafter referred to as "the undertaking"), the Danish Financial Supervisory Authority (Finanstilsynet) shall prepare a statement, which the undertaking must publish. The statement describes the Danish Financial Supervisory Authority's assessment of the undertaking, including any central orders, observations, and risk disclosures that the undertaking has received from the Danish Financial Supervisory Authority.

Paragraph 2. When the Danish Financial Supervisory Authority issues an order, observation, or risk disclosure to an undertaking, and this is not done in connection with an inspection pursuant to paragraph 1, the Danish Financial Supervisory Authority shall prepare a statement, which the undertaking must publish, when the Danish Financial Supervisory Authority assesses that the relevant measure has significance for:

1. Customers in undertakings covered by Section 1, paragraph 1, items 1, 5, 6, and 8-19.
2. The markets for crypto-assets where crypto-assets issued by undertakings covered by Section 1, paragraph 1, item 2, are traded.
3. The crowdfunding market in undertakings covered by Section 1, paragraph 1, item 3.
4. Investors in associations covered by Section 1, paragraph 1, item 4.
5. The proper functioning of markets in undertakings covered by Section 1, paragraph 1, items 7 and 15.
6. Members in undertakings covered by Section 1, paragraph 1, items 12-14.
7. Depositors in undertakings covered by Section 1, paragraph 1, items 1, 5, 6, 8-11, and 18-19.
8. Creditors in undertakings covered by Section 1, paragraph 1, items 1, 4-6, and 8-19.
9. The financial markets on which the undertaking's shares or securities issued by the undertaking are traded, in undertakings covered by Section 1, paragraph 1, items 1, 5, 6, 8-11, and 15-19.
10. Investors in real estate credit institutions covered by Section 1, paragraph 1, item 18.

Paragraph 3. A statement pursuant to paragraph 1 or 2 must not contain confidential information about customer relationships or information covered by Section 30 of the Act on Public Access to Information in the Public Sector.

Section 3. Publication pursuant to Section 2, paragraphs 1 and 2, shall not take place if, in the opinion of the Danish Financial Supervisory Authority, it would cause disproportionate damage to the undertaking, or if investigative considerations argue against publication.

Paragraph 2. Rules regarding publication under stock exchange law rules take precedence over this Order.

Paragraph 3. If publication is omitted pursuant to paragraph 1 or 2, publication shall take place when the considerations necessitating the omission are no longer valid. This applies only for up to two years after the decision to postpone publication.

Formal Requirements for Publication

Section 4. When the undertaking has received a statement from the Danish Financial Supervisory Authority, pursuant to Section 2, paragraphs 1 and 2, the undertaking must publish the statement no later than three business days after receiving the statement. The undertaking must publish the statement on its website in a place where it naturally belongs. When the undertaking has published the statement, this must be notified to the Danish Financial Supervisory Authority, which shall thereafter also publish the statement on its website.

Paragraph 2. Simultaneously with the publication pursuant to paragraph 1, first sentence, the undertaking must insert a link providing direct access to the statement on the front page of the undertaking's website in a visible manner. The link and any associated text must clearly indicate that it concerns a statement from the Danish Financial Supervisory Authority. Removal of the link and any associated text from the front page and the information from the undertaking's website shall take place according to the same principles as those applied for other communications, but no earlier than when the link and information have been on the website for three months. For undertakings holding general meetings, representative meetings, or similar assemblies, the link and information may not be removed earlier than after the next ordinary general meeting, representative meeting, or similar assembly.

Paragraph 3. Simultaneously with the undertaking's publication pursuant to paragraph 1, third sentence, the Danish Financial Supervisory Authority shall submit a report on the publication to the Minister for Employment for the undertakings listed in Section 1, paragraph 1, items 12-14.

Paragraph 4. The Danish Financial Supervisory Authority may, notwithstanding paragraph 1, third sentence, publish the statement on its website before the undertaking in cases where the undertaking has purely technical or practical problems with publication or where the failure to publish is without real justification.

Paragraph 5. If the undertaking comments on the Danish Financial Supervisory Authority's statement pursuant to Section 2, paragraphs 1 and 2, this must be done by extending the statement, and the comments must be clearly separated from the statement.

Branches

Section 5. For branches in Denmark of a foreign undertaking that has been granted permission to carry out the business mentioned in Sections 7-10 of the Act on Financial Business, Section 13 of the Act on Stockbroker Companies and Investment Services and Activities, Section 14 of the Act on Insurance Business, or Section 3 of the Act on Credit Service Companies and Credit Buyers, in a country within the European Union or a country with which the Union has concluded an agreement in the financial area, Sections 6, paragraph 1 and 3, and Sections 7-8 shall apply.

Paragraph 2. For branches in Denmark of a foreign undertaking that has been granted permission to carry out the business mentioned in Section 1, paragraph 1, items 1-12, 18, and 22-26, of the Money Laundering Act, Sections 6, paragraph 2 and 3, and Sections 7-8 shall apply.

Section 6. Branches mentioned in Section 5, paragraph 1, may publish statements from the Danish Financial Supervisory Authority containing information regarding the branch, which the Danish Financial Supervisory Authority has become aware of in connection with the investigation of the branch.

Paragraph 2. Branches mentioned in Section 5, paragraph 2, must publish statements from the Danish Financial Supervisory Authority containing information regarding the branch, which the Danish Financial Supervisory Authority has become aware of in connection with the investigation of the branch.

Paragraph 3. A statement pursuant to paragraph 1 or 2 must not contain confidential information about customer relationships or information covered by Section 30 of the Act on Public Access to Information in the Public Sector.

Section 7. The Danish Financial Supervisory Authority publishes the statements mentioned in Section 6 on its website. Publication occurs after the branch has published the statement. However, the Danish Financial Supervisory Authority publishes the statement no later than three business days after the branch has received the statement from the Danish Financial Supervisory Authority, regardless of whether the branch has published the statement.

Section 8. The Danish Financial Supervisory Authority's publication pursuant to Section 6 shall not take place if, in the opinion of the Danish Financial Supervisory Authority, it would cause disproportionate damage to the branch, or if investigative considerations argue against publication. This does not apply if the branch has previously published the statement itself.

Paragraph 2. Rules regarding publication under stock exchange law rules take precedence over this Order.

Paragraph 3. If publication is omitted pursuant to paragraph 1 or 2, the Danish Financial Supervisory Authority must publish the statement when the considerations necessitating the omission are no longer valid. This applies only for up to two years after the Danish Financial Supervisory Authority's decision to postpone publication.

Criminal Penalty

Section 9. Offenders who fail to comply with requirements for publication pursuant to Section 4, paragraphs 1 and 2, and Section 6, paragraph 2, shall be liable to a fine.

Paragraph 2. Section 9, paragraph 1, does not apply to undertakings covered by Section 1, item 13.

Paragraph 3. Companies and other legal persons may be subject to criminal liability pursuant to the rules in Chapter 5 of the Criminal Code. The first sentence of Section 9, paragraph 1, does not apply to undertakings covered by Section 1, item 12.

Entry into Force

Section 10. This Order enters into force on 1 January 2025.

Paragraph 2. Order No. 553 of 28 May 2024 on the Obligation of Financial Undertakings to Publish the Danish Financial Supervisory Authority's Assessment of the Undertaking and Other Matters is repealed.

Paragraph 3. Order No. 1355 of 3 December 2024 on the Obligation of Financial Undertakings to Publish the Danish Financial Supervisory Authority's Assessment of the Undertaking and Other Matters is repealed.

The Ministry of Industry, Business and Financial Affairs, 4 December 2024

Morten Bødskov / Hans Høj