Regulatory Alerts2025-06-12
Order on the Calculation of Risk Exposures, Capital Base and Solvency Requirements
The Danish Financial Supervisory Authority issued this order to implement EU directives regarding the calculation of risk exposures, capital bases, and solvency requirements for credit institutions, real estate credit institutions, and investment firms. It mandates that management assess adequate capital and individual solvency needs based on specific risk factors, while establishing strict rules for public disclosure, benchmark reporting, and the treatment of hybrid capital instruments. The regulation also details consolidation requirements for financial holding companies and sets out penalties for non-compliance, entering into force on July 1, 2025.
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