Regulatory Alerts2024-12-06
Order on Outsourcing for Group 2 Insurance Undertakings, Labour Market Supplementary Pension and the Wage Earners' Price Compensation Fund
Issued by the Danish Ministry of Industry, Business and Financial Affairs and the Danish Financial Supervisory Authority, this Order establishes strict regulatory requirements for outsourcing critical or important operational functions by Group 2 insurance undertakings, the Labour Market Supplementary Pension scheme, and the Wage Earners' Price Compensation Fund. It mandates that these entities adopt a board-approved outsourcing policy, conduct rigorous due diligence on service providers, and execute comprehensive written agreements that ensure regulatory oversight, data protection, and business continuity. The regulation supersedes previous outsourcing rules and enters into force on January 1, 2025, with violations subject to fines and corporate criminal liability.