Consolidated Act on Financial Business 1)

This act consolidates the Act on Financial Business, cf. Consolidated Act No. 1390 of 18 November 2025, with the amendments resulting from Section 1, Nos. 1, 2, 8-16, 18, 20-22, 28, 30-37, 40-48, 52-56, 59, 60, 62-64, 66, 67, 69 (partially), 71-77, 79-83, 99, 100, 102-104, 108, 109, 111-113, 115, 118, 119, 121-123 and 125, in Act No. 712 of 20 June 2025, Section 2 in Act No. 1636 of 16 December 2025 and Section 2, Nos. 2, 7-16 and 18-20, in Act No. 1638 of 16 December 2025.

The amendments resulting from Section 1, Nos. 117, 120 and 124, in Act No. 712 of 20 June 2025 on amendment of the Act on Financial Business, the Act on Alternative Investment Fund Managers etc., the Act on Investment Funds etc., the Money Laundering Act and various other laws (Handling of crypto exposures, preparation of ESG transition plans, new documentation requirements for institutions' management structure, allocation of responsibility and reporting lines, clearer rules for permits for credit institutions from countries outside the EU/EEA (third countries), new supervisory power for the Danish Financial Supervisory Authority to approve significant acquisitions of shareholdings in other companies, criminalization of the disclosure regulation, modernization of the rules in the AIFMD-UCITS II directive, strengthening of the rules on combating national and international money laundering and establishment of a common European access point (ESAP) for the submission of a number of published information etc.), are not incorporated into this consolidated act, as they enter into force on 2 July 2026, cf. Section 22, subsection 7, in Act No. 712 of 20 June 2025.

The law contains provisions implementing Council Directive 86/635/EEC of 8 December 1986 (Banking Accounting Directive), OJ 1986, No. L 372, page 1, Council Directive 89/117/EEC of 13 February 1989 (Publication of annual accounts documents for branches from non-member countries), OJ 1989, No. L 44, page 40, Council Directive 91/674/EEC of 19 December 1991 (Insurance Accounting Directive), OJ 1991, No. L 374, page 7, Directive 95/26/EC of the European Parliament and of the Council of 29 June 1995 (BCCI Directive), OJ 1995, No. L 168, page 7, Directive 2001/24/EC of the European Parliament and of the Council of 4 April 2001 (Banking Resolution Directive), OJ 2001, No. L 125, page 15, Directive 2002/13/EC of the European Parliament and of the Council of 5 March 2002 (Solvency I Directive), OJ 2002, No. L 77, page 17, Directive 2002/87/EC of the European Parliament and of the Council of 16 December 2002 (Conglomerates Directive), OJ 2003, No. L 35, page 1, parts of Directive 2006/31/EC of the European Parliament and of the Council of 5 April 2006 (Deferral Directive), OJ 2006, No. L 114, page 60, Directive 2007/44/EC of the European Parliament and of the Council of 5 September 2007 (Capital Acquisitions Directive), OJ 2007, No. L 247, page 1, parts of Directive 2007/64/EC of the European Parliament and of the Council of 13 November 2007 (Payment Services Directive), OJ 2007, No. L 319, page 1, parts of Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 (UCITS Directive), OJ 2009, No. L 302, page 32, parts of Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 (Solvency II Directive), OJ 2009, No. L 335, page 1, Commission Directive 2010/43/EU of 1 July 2010, OJ 2010, No. L 176, page 42, parts of Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 (CRD IV), OJ 2013, No. L 176, page 338, parts of Directive 2014/49/EU of the European Parliament and of the Council of 16 April 2014 (DGSD), OJ 2014, No. L 173, page 149, parts of Directive 2014/50/EU of the European Parliament and of the Council of 16 April 2014, OJ 2014, No. L 128, page 1, parts of Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014 on a framework for the recovery and resolution of credit institutions and investment firms (BRRD), parts of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 (MiFID II), OJ 2014, No. L 173, page 349, parts of Directive 2014/91/EU of the European Parliament and of the Council of 23 July 2014 (UCITS V Directive), OJ 2014, No. L 257, page 186, parts of Directive 2015/849/EU of the European Parliament and of the Council of 20 May 2015 (4th Money Laundering Directive), OJ 2015, No. L 141, page 73, parts of Directive 2018/843/EU of the European Parliament and of the Council of 30 May 2018, OJ 2018, No. L 156, page 43, parts of Directive 2016/97/EU of the European Parliament and of the Council of 20 January
2016, OJ 2016, No. L 26, page 19, parts of Directive (EU) 2019/878 of the European Parliament and of the Council of 20 May 2019, OJ 2019, No. L 150, page 253, parts of Directive 2017/828/EU of the European Parliament and of the Council of 17 May 2017, OJ 2017, No. L 132, page 1, parts of Directive 2019/879/EU of the European Parliament and of the Council of 20 May 2019 (BRRD II), OJ 2019, No. L 150, page 296, parts of Directive 2017/828/EU of the European Parliament and of the Council of 17 May 2017, OJ 2017, No. L 132, page 1, parts of Directive 2019/1160/EU of the European Parliament and of the Council of 20 June 2019, OJ 2019, No. L 188, page 106, parts of Directive (EU) 2019/2162 of the European Parliament and of the Council of 27 November 2019 on covered bonds and public supervision of covered bonds and amending Directives 2009/65/EC and 2014/59/EU, OJ 2019, No. L 328, page 29, parts of Commission Delegated Directive (EU) 2021/1270 of 21 April 2021 amending Directive 2010/43/EU as regards the sustainability risks and sustainability factors to be taken into account in connection with undertakings for collective investment in transferable securities (investment undertakings), OJ 2021, No. L 277, page 141, parts of Directive (EU) 2022/2555 of the European Parliament and of the Council of 14 December 2022 on measures to ensure a high common level of cybersecurity across the Union, OJ 2022, No. L 333, page 80-152, and parts of Directive (EU) 2022/2556 of the European Parliament and of the Council of 14 December 2022, OJ 2022, No. L 333, page 153-163, parts of Directive (EU) 2022/2464 of the European Parliament and of the Council of 14 December 2022 amending Regulation (EU) No 537/2014, Directive 2004/109/EC, Directive 2006/43/EC and Directive 2013/34/EU as regards corporate sustainability reporting, OJ 2022, No. L 322, page 15, parts of Directive (EU) 2023/2864 of the European Parliament and of the Council of 13 December 2023 amending certain directives as regards the creation of the common European access point and its functioning, OJ, L of 20 December 2023, parts of Directive (EU) 2024/927 of the European Parliament and of the Council of 13 March 2024 amending Directives 2011/61/EU and 2009/65/EC as regards delegation agreements, liquidity risk management, reporting for supervisory purposes, provision of depositary and safekeeping services and lending by alternative investment funds, OJ, L of 26 March 2024, Directive (EU) 2024/1619 of the European Parliament and of the Council of 31 May 2024 amending Directive 2013/36/EU as regards supervisory powers, sanctions, third-country branches and environmental, social and governance risks, OJ, L of 19 June 2024, and parts of Directive (EU) 2024/1174 of the European Parliament and of the Council of 11 April 2024 amending Directive 2014/59/EU and Regulation (EU) No 806/2014 as regards certain aspects of the minimum requirement for own funds and eligible liabilities, OJ, L of 22 April 2024. The law also
includes certain provisions from Commission Regulation (EU) No 584/2010 of 1 July 2010, OJ 2010, No. L 176, page 16, Regulation (EU) No 1092/2010 of the European Parliament and of the Council of 24 November 2010, OJ 2010, No. L 331, page 1, Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010, OJ 2010, No. L 331, page 12, Regulation (EU) No 1094/2010 of the European Parliament and of the Council of 24 November 2010, OJ 2010, No. L 331, page 48, Regulation (EU) No 1095/2010 of the European Parliament and of the Council of 24 November 2010, No. L 331, page 84, Regulation (EU) No 346/2013 of the European Parliament and of the Council of 17 April 2013, OJ 2013, No. L 115, page 18, Regulation (EU) No 345/2013 of the European Parliament and of the Council of 17 April 2013, OJ 2013, No. L 115, page 1, Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 (CRR), OJ 2013, No. L 176, page 1, Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 (MiFIR), OJ 2014, No. L 173, page 84, Regulation (EU) No 1286/2014 of the European Parliament and of the Council of 26 November 2014 (PRIIPs), OJ 2014, No. L 352, page 1, Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on markets in crypto-assets. According to Article 288 of the TFEU, a regulation applies directly in each Member State. The reproduction of these provisions in the law is thus solely justified by practical considerations and does not affect the direct validity of the regulations in Denmark.

16 April 2026. 2 No. 432.

The amendments resulting from Section 1, Nos. 3 and 5, in Act No. 712 of 20 June 2025 on amendment of the Act on Financial Business, the Act on Alternative Investment Fund Managers etc., the Act on Investment Funds etc., the Money Laundering Act and various other laws (Handling of crypto exposures, preparation of ESG transition plans, new documentation requirements for institutions' management structure, allocation of responsibility and reporting lines, clearer rules for permits for credit institutions from countries outside the EU/EEA (third countries), new supervisory power for the Danish Financial Supervisory Authority to approve significant acquisitions of shareholdings in other companies, criminalization of the disclosure regulation, modernization of the rules in the AIFMD-UCITS II directive, strengthening of the rules on combating national and international money laundering and establishment of a common European access point (ESAP) for the submission of a number of published information etc.), are not incorporated into this consolidated act, as they enter into force on 1 January 2027, cf. Section 22, subsection 9, in Act No. 712 of 20 June 2025.

The amendment resulting from Section 1, No. 98, in Act No. 712 of 20 June 2025 on amendment of the Act on Financial Business, the Act on Alternative Investment Fund Managers etc., the Act on Investment Funds etc., the Money Laundering Act and various other laws (Handling of crypto exposures, preparation of ESG transition plans, new documentation requirements for institutions' management structure, allocation of responsibility and reporting lines, clearer rules for permits for credit institutions from countries outside the EU/EEA (third countries), new supervisory power for the Danish Financial Supervisory Authority to approve significant acquisitions of shareholdings in other companies, criminalization of the disclosure regulation, modernization of the rules in the AIFMD-UCITS II directive, strengthening of the rules on combating national and international money laundering and establishment of a common European access point (ESAP) for the submission of a number of published information etc.), is not incorporated into this consolidated act, as it enters into force on 16 April 2027, cf. Section 22, subsection 10, in Act No. 712 of 20 June 2025.

The amendments resulting from Section 1, Nos. 38, 39, 78 and 95, in Act No. 712 of 20 June 2025 on amendment of the Act on Financial Business, the Act on Alternative Investment Fund Managers etc., the Act on Investment Funds etc., the Money Laundering Act and various other laws (Handling of crypto exposures, preparation of ESG transition plans, new documentation requirements for institutions' management structure, allocation of responsibility and reporting lines, clearer rules for permits for credit institutions from countries outside the EU/EEA (third countries), new supervisory power for the Danish Financial Supervisory Authority to approve significant acquisitions of shareholdings in other companies, criminalization of the disclosure regulation, modernization of the rules in the AIFMD-UCITS II directive, strengthening of the rules on combating national and international money laundering and establishment of a common European access point (ESAP) for the submission of a number of published information etc.), are not incorporated into this consolidated act, as they enter into force on 10 January 2030, cf. Section 22, subsection 12, in Act No. 712 of 20 June 2025.

The amendments resulting from Section 4 in Act No. 1322 of 20 November 2025 on amendment of the Act on Credit Agreements, the Act on Marketing, the Act on Consumer Loan Businesses and various other laws (Implementation of the revised Consumer Credit Directive), are not incorporated into this consolidated act, as they enter into force on 20 November 2026, cf. Section 6, subsection 1, in Act No. 1322 of 20 November 2025.

The amendment resulting from Section 2, No. 17, in Act No. 1638 of 16 December 2025 on amendment of the Act on Capital Markets, the Act on Financial Business, the Act on Investment Funds etc. and various other laws (Abolition of national prospectus threshold, partial abolition of prohibition on share classes in financial businesses, insurance companies and fund brokerage companies, amendment of publication requirements for admission to trading on a multilateral trading facility, strengthening of the Danish Financial Supervisory Authority's independence etc.), is not incorporated into this consolidated act, as it enters into force on 6 June 2026, cf. Section 15, subsection 7, in Act No. 1638 of 16 December 2025.

The amendments resulting from Section 2, Nos. 1 and 3-6, in Act No. 1638 of 16 December 2025 on amendment of the Act on Capital Markets, the Act on Financial Business, the Act on Investment Funds etc. and various other laws (Abolition of national prospectus threshold, partial abolition of prohibition on share classes in financial businesses, insurance companies and fund brokerage companies, amendment of publication requirements for admission to trading on a multilateral trading facility, strengthening of the Danish Financial Supervisory Authority's independence etc.), are not incorporated into this consolidated act, as they enter into force on 5 December 2026, cf. Section 15, subsection 10, in Act No. 1638 of 16 December 2025.

Section I

General Provisions

Chapter 1

Scope of Application

General Rules on Scope of Application

Section 1. This Act applies to financial businesses, cf. Section 5, subsection 1, No. 1, as well as businesses covered by subsections 2-11 and 15.

Subsection 2. For financial holding companies, Sections 6, 6a and 6b, Section 43, subsection 1, Chapter 7, Section 64, subsection 11, 64e, subsection 1, Sections 70, 71, 75, 79a, 117, 175a and 179-181, Chapter 13, Sections 344, 345, 346 and 347-348a, Section 350, subsection 3, Section 351, subsections 1, 2 and 6-9, Sections 355 and 357, Section 361, subsection 1, Nos. 3 and 9, and subsection 2, Section 368, subsections 2 and 3, subsection 4, No. 1, and subsection 5, and Sections 369, 370, 372, 373, 373a and 374 apply. For financial holding companies, Section 46, subsections 2 and 3, Section 64c, subsection 5, cf. subsections 1 and 4, Sections 71b, 77a-77d, 170-175, 176-178 and 182b-182f, Section 245a, subsection 5, Sections 245b and 260, Section 266, subsection 1, and Sections 271, 274-276, 310, 312, 313, 313b and 344d also apply. For mixed holding companies, Section 64, subsection 11, Section 260, Section 264, subsection 5, No. 13, Section 266, subsection 1, Sections 271, 274-276, 344 and 345, Section 347, subsection 1, Section 351, subsections 1, 2 and 6-9, and Sections 355, 372 and 373 also apply.

Subsection 3. This Act applies to branches in this country of credit institutions and management companies authorized in a country outside the European Union, with which the Union has not concluded an agreement in the financial area, with the deviations that the branch relationship necessitates, or as specified in or pursuant to international agreements. The Danish Financial Supervisory Authority may specify further rules on the organization of businesses covered by the first sentence, including rules on capital requirements etc. The Danish Financial Supervisory Authority may specify further rules that branches covered by the first sentence must conduct their activities in a subsidiary. The provisions of the Companies Act on branches of foreign limited companies apply to the branches mentioned in the first sentence.

Subsection 4. For branches in this country of foreign businesses authorized to conduct the business mentioned in Sections 7-10a in a country within the European Union or in a country with which the Union has concluded an agreement in the financial area, Sections 6, 6a, 6b, 30, 32, 43, 43b, 47-48a, 50-54, 344 and 345, Section 347, subsections 1-3, 5 and 7, and Sections 347b, 347c, 348, 354a, 354b, 360, 363a, 368-370 and 373-374 apply with the deviations specified in or pursuant to international agreements. For branches in this country of credit institutions, Section 152a, subsection 4, second sentence, applies with the deviations specified in or pursuant to international agreements. For branches in this country of a foreign business authorized to conduct the business mentioned in Sections 7-10a in another country within the European Union or in a country with which the Union has concluded an agreement in the financial area, Section 347a also applies with the deviations specified in or pursuant to international agreements. For branches and associated agents in this country of credit institutions authorized to provide investment services or perform investment activities in another country within the European Union or in a country with which the Union has concluded an agreement in the financial area, and which perform such activity in this country, Sections 30, 32, 344 and 345, Section 347, subsections 1-3, 5 and 7, Sections 348, 354a and 354b and Section 363b, subsections 1 and 2, apply with the deviations specified in or pursuant to international agreements. Section 43 and rules issued pursuant thereto apply correspondingly to situations mentioned in the fourth sentence.

Subsection 5. For services provided in this country by credit institutions and management companies authorized in another country within the European Union or in a country with which the Union has concluded an agreement in the financial area, Sections 6, 6a, 6b, 31, 43 and 46-54, Section 347, subsection 1, and Section 348, subsection 1, apply with the deviations specified in or pursuant to international agreements. For services provided in this country by credit institutions authorized to provide investment services or perform investment activities in another country within the European Union or in a country with which the Union has concluded an agreement in the financial area, Section 31, Section 347, subsection 1, and Section 348, subsection 1, apply with the deviations specified in or pursuant to international agreements.

Subsection 6. For securities trading services provided in this country by credit institutions authorized in a country outside the European Union, with which the Union has not concluded an agreement in the financial area, and for which the Commission has not adopted a decision as referred to in Article 47, subsection 1, of Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments, or where such a decision is no longer valid, Sections 6, 6a, 6b, 33 and 43, Section 347, subsection 1, Section 348, Section 363b, subsection 4, and Section 373, subsections 3 and 5, apply.

Subsection 7. For services provided in this country by insurance companies authorized in a country outside the European Union, with which the Union has not concluded an agreement in the financial area, Sections 6, 6a, 6b and 37 apply.

Subsection 8. Chapter 20 applies to savings businesses.

Subsection 9. Chapter 20b applies to credit rating agencies.

Paragraph 10. Chapter 20 f applies to CO2 quota traders.

Paragraph 11. Chapter 20 h applies to STS certification bodies.

Paragraph 12. Provisions regarding the board of directors or members thereof in Section 5, Paragraph 1, No. 6, Section 77, Paragraphs 1 and 3, Section 78, Paragraph 1, No. 1, Section 98, Section 144, Paragraph 1, Section 199, Paragraphs 10 and 11, and Sections 203, 209 and 247 shall in SE companies with a two-tier management system apply solely to the supervisory board or members thereof with the necessary adjustments.

Paragraph 13. Chapter 20 a applies to crowdfunding service providers.

Paragraph 14. Chapter 19 b applies to natural and legal persons and other undertakings involved in the issuance, offer to the public and admission to trading of crypto-assets, or which provide services in connection with crypto-assets.

Paragraph 15. Chapter 19 c applies to operators of financial digital infrastructure.

Paragraph 16. Provisions regarding the board of directors or members thereof and provisions regarding management in Section 14, Paragraph 1, No. 2, Sections 64, 65, 73-75, 80 and 117, Section 124, Paragraphs 1 and 4, Section 179, No. 2, Section 180, No. 2, Sections 184, 185 and 233, Section 346, Paragraphs 2 and 3, Section 349, Paragraph 2, No. 2, Section 351, Section 355, Paragraph 2, No. 8, and Paragraph 3, and Sections 356 and 373-374 shall in SE companies with a two-tier management system, in addition to the management body and its members, also apply to the supervisory board or members thereof with the necessary adjustments.

Paragraph 17. For suppliers and sub-suppliers to outsourcing undertakings, cf. Section 5, Paragraph 1, Nos. 21 and 22, Sections 6, 6 a and 6 b and Section 347, Paragraphs 1 and 6 apply.

Paragraph 18. For fund brokerage companies covered by Article 1, Paragraphs 2 and 5, of Regulation (EU) 2019/2033 of the European Parliament and of the Council of 27 November 2019 on prudential requirements for investment firms and for fund brokerage companies covered by Section 236 of the Act on Fund Brokerage Companies and Investment Services and Activities, the provisions implementing Title VII and VIII of Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and on the prudential supervision of credit institutions shall apply.

Paragraph 19. For credit institutions that have simultaneously been granted authorization as central counterparties (CCPs) in accordance with Article 14 of Regulation (EU) No 648/2012 of 4 July 2012 on OTC derivatives, central counterparties and trade repositories, Sections 71 a-71 c, 177 a, 177 b, 182 b-182 f and 224 a and Chapters 15 a, 17 and 17 a of this Act shall not apply.

Sections 2-4. (Repealed)

Chapter 2
Definitions

Section 5. In this Act, the following terms are understood as:

Financial undertakings:
a) Credit institutions. b) Mortgage credit institutions. c) Investment management companies.
Credit institution:
a) An undertaking whose business is to receive deposits or other repayable funds from the public and to grant credits for its own account. b) An undertaking which carries out all the activities referred to in Section A, points 3 and 6, of Annex 1 to the Act on Fund Brokerage Companies and Investment Services and Activities, if one of the following conditions applies, but the undertaking is not a commodity or emission quota trader, a collective investment undertaking or an insurance undertaking:
i) The total value of the undertaking's consolidated assets amounts to or exceeds 30 billion euros. ii) The total value of the undertaking's assets is less than 30 billion euros, and the undertaking is part of a group where the total value of the consolidated assets of all the undertakings in the group, which individually have total assets of less than 30 billion euros, and which carry out one or more of the activities referred to in Section A, points 3 and 6, of Annex 1 to the Act on Fund Brokerage Companies and Investment Services and Activities, amounts to or exceeds 30 billion euros, cf. however Paragraph 8. iii) The total value of the undertaking's assets is less than 30 billion euros, and the undertaking is part of a group where the total value of the consolidated assets of all the undertakings in the group, which carry out one or more of the activities referred to in Section A, points 3 and 6, of Annex 1 to the Act on Fund Brokerage Companies and Investment Services and Activities, amounts to or exceeds 30 billion euros, if the consolidating authority decides this in consultation with the supervisory college to take into account potential risks of circumvention and potential risks to financial stability in the Union, cf. however Paragraph 8.
Investment services and investment activities: Activities as mentioned in Annex 1, Section A, of the Act on Fund Brokerage Companies and Investment Services and Activities in connection with the instruments listed in the same Act's Annex 2.
Administration company: A company that can administer UCITS (in Denmark: investment management company).
Finance company: An undertaking that is not a credit institution, a fund brokerage company, cf. the Act on Fund Brokerage Companies and Investment Services and Activities, or a pure industrial holding company, and whose main business consists of acquiring capital shares or carrying out one or more of the activities specified in Annex 2, Nos. 2-12 and 15.
Parent undertaking: An undertaking which has one or more subsidiary undertakings.
Subsidiary undertaking:
a) An undertaking over which a parent undertaking has decisive influence, or b) a credit institution which is permanently affiliated to a central body, the central body and its respective subsidiary undertakings, cf. letter a, for the application of Sections 259-267 h and 269-271 on resolution groups, cf. No. 56, letter b, with regard to which businesses in the resolution group must meet a requirement for own funds and eligible liabilities, cf. Section 266.
Group: A parent undertaking and its subsidiary undertakings, cf. Section 5 a.
Financial holding company:
a) A parent undertaking that is not a financial undertaking in a group where at least one of the subsidiary undertakings in the group is a financial undertaking, and where at least 40 percent of the total balance sheet total for the group and the parent undertaking's associated undertakings relates to the financial sector, cf. however Paragraph 7. b) A parent undertaking whose business exclusively or mainly consists of owning capital shares in subsidiary undertakings that are financial undertakings or finance companies. Subsidiary undertakings are mainly financial undertakings or finance companies if at least one is a financial undertaking and more than 50 percent of the parent undertaking's consolidated assets are linked to subsidiary undertakings that are financial undertakings or finance companies. A parent undertaking as mentioned in the first sentence is not a financial holding company if the financial subsidiary undertakings in the group exclusively are insurance undertakings.
Credit institution holding company: A parent undertaking whose business exclusively or mainly consists of owning capital shares in subsidiary undertakings that are credit institutions or finance companies, and where the group's main business is to operate credit institution business.
Mortgage credit holding company: A parent undertaking whose business exclusively or mainly consists of owning capital shares in subsidiary undertakings that are credit institutions or finance companies, and where the group's main business is to operate mortgage credit institution business.
Investment management holding company: A parent undertaking whose business exclusively or mainly consists of owning capital shares in subsidiary undertakings that are credit institutions or finance companies, and where the group's main business is to operate investment management business.
Associated undertaking: An undertaking in which a financial undertaking and its subsidiary undertakings hold capital shares and exercise significant influence on its operational and financial management, but which is not a subsidiary undertaking of the financial undertaking. A financial undertaking and its subsidiary undertakings are presumed to exercise significant influence if they together hold 20 percent or more of the voting rights.
Exposure: The sum of all claims on a customer or a group of interconnected customers that entails credit risk for the undertaking, and capital shares issued by the customer or by among a group of interconnected customers. As far as provisions on exposures in Sections 78 and 182 are concerned, the following claims are excluded:
a) In connection with foreign exchange transactions: Claims arising in connection with the normal settlement of a transaction, within a period of 48 hours after payment has taken place. b) In connection with the purchase or sale of transferable securities: Claims arising in connection with the normal settlement of a transaction, within a period of 5 working days after payment has taken place or the transferable securities have been delivered, depending on which date comes first. c) In connection with payment intermediation, including the execution of payment orders, clearing and settlement of transferable securities in any currency and correspondent bank or offer of clearing, settlement and deposit of financial instruments to customers: Claims regarding delayed receipt of financing and other claims arising as a result of customer activity, and which do not last longer than the following working day. d) In connection with payment intermediation, including the execution of payment orders, clearing and settlement of transferable securities in any currency and correspondent bank: Intraday claims with institutions providing these services.
Close links:
a) Direct or indirect links of the type specified in No. 8, b) capital interests, which means an undertaking's direct or indirect holding of 20 percent or more of the voting rights or capital in an undertaking, or c) several undertakings or persons' common link, cf. letter a, with an undertaking.
Zone A countries: The member states of the EU, other countries that are full members of the Organisation for Economic Co-operation and Development (OECD), and other countries that have entered into special loan agreements with the International Monetary Fund (IMF) and are attached to the General Arrangements to Borrow. A country that restructures its foreign state debt as a result of inability to pay is excluded from Zone A for a period of 5 years.
Branch: A division which legally constitutes a non-independent part of a credit institution or administration company, and which carries out business of the type that the undertaking is authorized to carry out.
Multilateral Trading Facility (MTF): Any system or any facility where the buy and sell interests of various third parties in financial instruments can be brought together, and which is operated in accordance with the rules in Chapters 17, 18, 20, 22 and 23 of the Act on Capital Markets.
Outsourcing: Any form of arrangement between an undertaking and a supplier, under which the supplier carries out a process, a service or an activity that the undertaking would otherwise carry out itself. For insurance undertakings, outsourcing is defined as an arrangement of any kind between an insurance undertaking and a service provider, where the service provider either directly or through re-outsourcing carries out a process, a service or an activity that the insurance undertaking would otherwise have carried out itself.
Outsourcing undertaking: A financial undertaking that outsources activities to a supplier.
Supplier: An undertaking that handles outsourced tasks for the outsourcing undertaking.
Re-outsourcing: A supplier's outsourcing of tasks that it handles in accordance with an agreement with the outsourcing undertaking, to a sub-supplier and the sub-supplier's possible re-outsourcing of the tasks to the next link in the chain of sub-suppliers and possible re-outsourcing to other links in the chain of sub-suppliers.
UCITS: An investment undertaking that has authorization in accordance with rules implementing the UCITS Directive, and which may be established pursuant to Article 1, Paragraph 3,
a) in accordance with agreement as investment funds administered by investment management companies or administration companies (in Denmark: investment funds), b) as trusts (unit trusts) or c) in accordance with statutes as investment companies (in Denmark: investment associations and companies for investment with variable capital (SICAVs)).
Competent authorities: The national authorities that are authorized by law or other regulations to exercise supervision of the types of business covered by this Act.
Reference rate: A published interest rate calculated using a formula based on individual submissions from a number of independent submitters in accordance with agreement or regulations thereon, and which is intended to form the basis for agreed interest rate setting between credit institutions or between credit institutions and their customers.
Combined capital buffer requirement: The total own core capital necessary to meet the requirement for a capital conservation buffer, cf. No. 27, increased with an undertaking-specific countercyclical capital buffer, cf. No. 31, a SIFI buffer, cf. No. 31, a G-SIFI buffer, cf. No. 34, and a systemic buffer, cf. No. 36, cf. however Section 125 e, Paragraph 2.
Capital conservation buffer: The capital base that an undertaking must maintain in accordance with Section 125 a, Paragraph 3.
Undertaking-specific countercyclical capital buffer: The capital base that an undertaking must maintain in accordance with Section 125 a, Paragraph 4.
Countercyclical buffer rate: The rate that undertakings must use to calculate their undertaking-specific countercyclical capital buffer, and which is set in accordance with Section 125 f, Paragraphs 1-3, 5 and 6.
Undertaking-specific countercyclical capital buffer rate: The weighted average of the countercyclical buffer rates that apply to the countries where an undertaking's relevant credit exposures are located, cf. Section 125 f, Paragraphs 1-3, 5 and 6.
SIFI buffer: The capital base that a systemically important financial institution (SIFI), cf. Section 308, must maintain in accordance with Section 125 a, Paragraph 5, on an individual, sub-consolidated and consolidated basis.
SIFI buffer rate: The rate that a systemically important financial institution (SIFI) must use to calculate its SIFI buffer, and which is set in accordance with Section 125 g.
Leverage ratio buffer: The capital base that a globally systemically important financial institution (G-SIFI) must maintain in accordance with Article 92, Paragraph 1a, of the Regulation of the European Parliament and of the Council on prudential requirements for credit institutions and investment firms.
G-SIFI buffer: The capital base that a globally systemically important financial institution (G-SIFI), cf. Section 310, must maintain in accordance with Section 125 a, Paragraph 6, on a consolidated basis.
G-SIFI buffer rate: The rate that a globally systemically important financial institution (G-SIFI) must use to calculate its G-SIFI buffer, and which is set in accordance with Section 125 g.
Systemic buffer: The capital base that an undertaking must maintain in accordance with Section 125 a, Paragraph 7.
Systemic buffer rate: The rate that an undertaking must use to calculate its systemic buffer, and which is set in accordance with Section 125 h.
Variable remuneration: Remuneration schemes where part of the remuneration is not known in advance, including bonus schemes, performance contracts, one-off payments and other similar schemes that are not part of the fixed remuneration.
Mixed holding company: A parent undertaking that is not a financial holding company or a credit institution or a mortgage credit institution, in a group where at least one subsidiary undertaking in the group is a credit institution or a mortgage credit institution.
Beneficial owner: Natural person who ultimately directly or indirectly owns or controls a sufficient part of the ownership shares or voting rights, or who exercises control by other means.
Mortgage-like loan: A loan that at the time of borrowing has an agreed term of more than 10 years and a principal of at least 100,000 DKK. Furthermore, the loan must have collateral in a owner-occupied house, a holiday home or a farm property that can be mortgaged in accordance with the rules for owner-occupied houses and holiday homes, located in Denmark, and the loan must at the time of borrowing lie within the loan limits that follow from Section 5, or be granted pursuant to Section 7 of the Act on Mortgage Loans and Mortgage Bonds etc., and it must be able to lie as security for specially secured bonds or bonds that can be described as specially secured bonds.
Accessory service: Services as mentioned in Annex 1 to the Act on Fund Brokerage Companies and Investment Services and Activities.
Execution of orders for investors' account: Entering into agreements for the purchase or sale on behalf of investors of one or more financial instruments.
Trading for own account: Trading over own inventory, which results in transactions with one or more financial instruments.
Financial instrument: Instruments as mentioned in Annex 2 to the Act on Fund Brokerage Companies and Investment Services and Activities, including such instruments that are issued using distributed ledger technology.
Derivative: Derivative as defined in Article 2, Paragraph 1, No. 29, of Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments.
Structured deposit: Deposit as defined in Article 2, Paragraph 1, No. 3, letter c, of Directive 2014/49/EU of the European Parliament and of the Council on deposit guarantee schemes, which shall be repaid in full at maturity under provisions that any interest or premium is paid or is at risk after a formula that includes factors such as an index or a combination of indices, except for deposits with variable interest, the return of which is directly linked to an interest index such as EURIBOR or LIBOR, a financial instrument or a combination of financial instruments, a commodity or a combination of commodities or other material or immaterial non-transferable assets or an exchange rate or a combination of exchange rates.
STS certification body: A legal person covered by Article 28 of Regulation 2017/2402/EU of the European Parliament and of the Council of 12 December 2017 laying down a general framework for securitisation and creating a specific framework for simple, transparent and standardised securitisation, which checks and declares whether a securitisation meets the criteria in Article 19-22, 23-26 or 26 b-26 e of the STS Regulation.
Intermediary: An undertaking that has authorization in accordance with this Act to carry out activities mentioned in Annex 1, Section A, No. 4, of the Act on Fund Brokerage Companies and Investment Services and Activities, when the undertaking provides services in relation to the custody of shares with voting rights in companies that have shares admitted to trading on a regulated market.
Capital manager: An undertaking that has authorization in accordance with this Act to carry out activities mentioned in Annex 1, Section A, No. 4, of the Act on Fund Brokerage Companies and Investment Services and Activities, when the undertaking provides services in relation to the portfolio management of shares with voting rights in companies that have shares admitted to trading on a regulated market.
Advising proxy: A financial undertaking that on a professional and commercial basis analyzes information from listed companies, and, if relevant, other information with a view to enabling investors to make informed decisions in connection with voting in the companies in question by providing research, advice or recommendations relating to the exercise of shareholders' voting rights.
Write-down eligible liabilities: Liabilities that are covered by bail-in, and which are covered by Section 267 a, Paragraph 1, or Section 267 e.
Subordinated write-down eligible instruments: Instruments that meet the conditions in Article 72 a, Article 72 b, Paragraphs 1 and 2, and Article 72 c of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions.
Resolution entity:
a) An undertaking that is covered by resolution measures in a resolution plan prepared in accordance with Section 259. b) An undertaking that is covered by resolution measures in a group resolution plan prepared in accordance with Section 260.
Resolution group:
a) A resolution entity and its subsidiary undertakings. A subsidiary undertaking is not covered by a resolution group if i) the subsidiary undertaking itself is a resolution entity, ii) the subsidiary undertaking is a subsidiary undertaking of another resolution entity or iii) the subsidiary undertaking is established in a third country, unless the subsidiary undertaking is included in the resolution group in accordance with the resolution plan. b) Credit institutions which are permanently affiliated to a central body, and the central body, when at least one credit institution or the central body is a resolution entity. The subsidiary undertakings of the credit institutions and the central body are also covered by the resolution group.
Liquidation entity:
a) An undertaking which, according to a resolution plan prepared in accordance with Section 259, is to be taken into bankruptcy proceedings. b) An undertaking which, according to a group resolution plan prepared in accordance with Section 260, is to be taken into bankruptcy proceedings. c) An undertaking in a resolution group, which is not a resolution entity, and which is covered by a group resolution plan prepared in accordance with Section 260, for which no exercise of write-down or conversion powers is set, cf. Section 16.

24 in the Act on Restructuring and Resolution of Certain Financial Undertakings.
57) Gender-neutral pay policy: A pay policy based on equal pay for equal work or work of equal value regardless of the employee's gender.
58) Sustainability risk: Sustainability risk as defined in Article 2, point 22, of Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial services sector.
59) Outgoing net cash flows: All outgoing payment flows maturing on a day, including principal and interest payments as well as payments under derivative contracts linked to the issuance of covered bonds, minus all incoming payment flows maturing on the same day for claims related to the underlying assets.
60) Severance pay: Any form of payment to which the recipient becomes entitled in connection with their departure, and which does not
a) constitute salary or the value of staff benefits during the notice period, b) constitute reasonable compensation for the assumption of non-compete clauses or client clauses, or c) result from mandatory legislation.
61) Adjusted capital base: Adjusted capital base as defined in Article 4(1), point 71, of Regulation (EU) of the European Parliament and of the Council on prudential requirements for credit institutions and investment firms and amending Regulation No 648/2012.
62) Environmental, social and governance risk or ESG risk: An environmental, social and governance risk as defined in Article 4(1), point 52d, of Regulation (EU) of the European Parliament and of the Council on prudential requirements for credit institutions and investment firms and amending Regulation No 648/2012.
63) Climate neutrality: The overarching goal of achieving climate neutrality by 2050 as set out in Article 2(1) of Regulation (EU) of the European Parliament and of the Council on the establishment of a framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 ('the European Climate Law').
64) Central Securities Depository (CSD): A central securities depository as defined in Article 2(1), point 1, of Regulation (EU) of the European Parliament and of the Council on improving securities settlement in the European Union and on central securities depositories.
Paragraph 2. Capital interests are understood as a company's direct or indirect holding of 20 percent or more of the voting rights or capital in a company.
Paragraph 3. Qualified holding is understood as direct or indirect holding of at least 10 percent of the capital or voting rights, or a holding that allows for the exercise of significant influence over the management of the financial undertaking or the financial holding company.
Paragraph 4. Capital shares are understood as shares in limited liability companies (shares), in private limited companies (partnerships), and in the equity capital of other companies.
Paragraph 5. In the calculation of voting rights and rights to appoint or dismiss members of management bodies, rights held by both the parent undertaking and its subsidiary undertakings are included.
Paragraph 6. In this Act, the following are understood:

Solvency requirement in accordance with Section 124(3) and Section 126a(7).
Solvency need in accordance with Section 124(1) and (2), and Section 126a(1).
Minimum capital requirement in accordance with Sections 124 and 126a.
Capital base in accordance with Section 126a(9), Article 4(1), point 118, of Regulation (EU) No 575/2013 on prudential requirements for credit institutions, and rules issued pursuant to Section 128(1) and (2).
Common equity tier 1 capital in accordance with Article 50 of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions, and rules issued pursuant to Section 128(1) and (2).
Tier 1 capital in accordance with Article 25 of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions, and rules issued pursuant to Section 128(1) and (2).
Tier 2 capital in accordance with Article 71 of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions, and rules issued pursuant to Section 128(1) and (2).
Additional tier 1 capital in accordance with Article 61 of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions, and rules issued pursuant to Section 128(1) and (2).
Tier 2 capital instruments in accordance with Article 63 of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions, and rules issued pursuant to Section 128(1) and (2).
Total risk exposure in accordance with Article 92(3), Article 95(2), Article 96(2), of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions, and rules issued pursuant to Section 142(1).
Additional capital requirement in accordance with Section 125.
Paragraph 7. A parent undertaking that has been subject to paragraph 1, point 9, letter a, is still considered a financial holding company if at least 35 percent of the total balance sheet of the group and the parent undertaking's associated undertakings relates to the financial sector. The first sentence does not apply, however, if the total balance sheet mentioned in the first sentence has been below 40 percent for 3 consecutive years. Paragraph 8. If the undertaking is part of a third-country group, the total assets of each branch of the third-country group authorized in the Union are included in the calculation of the total value of the assets of all the group's undertakings pursuant to paragraph 1, point 2, letter b, points ii and iii. 16 April 2026. 8 No. 432.

Paragraph 9. The Danish Financial Supervisory Authority may set detailed rules on the items mentioned in paragraph 1, point 14, letters c and d.
Groups
Section 5a. A parent undertaking together with one or more subsidiary undertakings constitutes a group. A company can only have one direct parent undertaking. If several companies meet one or more of the criteria in Section 5b, it is only the company that actually exercises the controlling influence over the company's economic and operational decisions that is considered the parent undertaking.
Section 5b. Controlling influence is the power to direct the economic and operational decisions of a subsidiary undertaking.
Paragraph 2. Controlling influence with regard to a subsidiary undertaking exists when the parent undertaking directly or indirectly through a subsidiary undertaking owns more than half of the voting rights in a company, unless it can be clearly demonstrated in special cases that such ownership does not constitute controlling influence.
Paragraph 3. If a parent undertaking does not own more than half of the voting rights in a company, controlling influence exists if the parent undertaking has

the right to exercise more than half of the voting rights by virtue of an agreement with other investors,
the power to direct the financial and operational matters of a company in accordance with a statute or agreement,
the power to appoint or dismiss the majority of the members of the top management body and this body holds the controlling influence on the company, or
the right to the actual majority of votes at the general meeting or in a corresponding body and thereby holds the actual controlling influence over the company.
Paragraph 4. The existence and effect of potential voting rights, including subscription rights and purchase options on capital shares, that can currently be exercised or converted, must be taken into account when assessing whether a company has controlling influence.
Paragraph 5. In the calculation of voting rights in a subsidiary undertaking, voting rights attached to capital shares held by the subsidiary undertaking itself or its subsidiary undertakings are disregarded.
Chapter 2a
Communication
Section 6. The Minister for Industry, Business and Financial Affairs may set rules stating that written communication to and from the Danish Financial Supervisory Authority, the Minister for Industry, Business and Financial Affairs, and the Danish Business Authority regarding matters covered by this Act or rules issued pursuant to this Act, must be conducted digitally.
Paragraph 2. The Minister for Industry, Business and Financial Affairs may set detailed rules on digital communication, including the use of specific IT systems, special digital formats, and digital signatures, etc.
Section 6a. A digital message is deemed to have been received when it is available to the addressee of the message.
Section 6b. Where this Act or rules issued pursuant to this Act require that a document issued by entities other than authorities, pursuant to Section 6(1), be signed, this requirement may be fulfilled by using a technique that ensures unique identification of the issuer of the document, subject to paragraph 2. Such documents are equated with documents with a personal signature.
Paragraph 2. The Minister for Industry, Business and Financial Affairs may set detailed rules on derogation from the signature requirement. It may be specified that the requirement for a personal signature cannot be derogated from for certain types of documents.
Section II
Authorization, Exclusive Right, Business Area and Foreign Institutions
Chapter 3
Authorization, Exclusive Right, etc.
Authorization for credit institutions, mortgage credit institutions and investment management companies
Section 7. Companies that carry on business consisting of receiving deposits or other funds repayable from the public as well as lending for their own account, but not on the basis of the issuance of mortgage bonds, pursuant to Section 8(3), must have authorization as a credit institution. Credit institutions may only carry on business as mentioned in Annex 1 as well as business pursuant to Sections 24-26. Credit institutions may provide or perform investment services and activities covered by Annex 1, Section A, of the Act on Securities Dealers and Investment Services and Activities. In the provision or performance of investment services and activities by credit institutions, Section 28, Section 30(4), Sections 45-48, 67 and 94, Section 95(1)-(5) and (7), and Sections 96, 108 and 243 and rules issued pursuant thereto, as well as Chapters 22-27 of the Act on Securities Dealers and Investment Services and Activities, apply. Companies that meet the conditions in Section 5(1), point 2, letter b, must have authorization as a credit institution.
Paragraph 2. The following have the exclusive right to receive deposits and other funds repayable from the public:
Credit institutions.
Foreign credit institutions that meet the conditions in Section 2(1) or Sections 30 or 31.
Savings institutions.
The State.
Danmarks Nationalbank.
Paragraph 3. The following may receive other funds repayable from the public, other than deposits:
Mortgage credit institutions.
A ship financing institution.
KommuneKredit.
Project owners, provided that the funds received are received as part of a crowdfunding offering covered by the rules in Regulation (EU) No 2020/1503 of the European Parliament and of the Council of 7 October 2020 on European crowdfunding service providers for business.
Companies, provided that the receipt of other funds repayable or lending business is not a significant part of the company's operations.
Paragraph 4. Credit institutions, the State, and foreign credit institutions that meet the conditions in Section 2(1) and Sections 30 or 31, have the exclusive right to offer themselves as recipients of deposits by addressing the public.
Paragraph 5. Credit institutions have the exclusive right to use the terms 'bank', 'savings bank' or 'cooperative bank' respectively in their name. Other companies, except banks established by law, must not use names or designations for their business that are likely to create the impression that they are credit institutions. A credit institution must not designate its business in a manner likely to create the impression that it is the country's national bank. Paragraph 6. Credit institutions must use the terms 'bank', 'savings bank' or 'cooperative bank' respectively in their name, subject to paragraph 7. The Companies Act Section 2(2)-(4), Sections 3 and 347, apply mutatis mutandis to savings banks and cooperative banks. Paragraph 7. A limited liability company that, pursuant to the rules in Sections 207-213, takes over a cooperative bank or a savings bank, is entitled to designate itself as a cooperative bank or savings bank, provided that the word 'limited liability company' or abbreviations derived therefrom must be added to the name. Paragraph 8. A company applying for authorization pursuant to paragraph 1 must have a share capital of at least an amount corresponding to EUR 5 million.
Section 8. Companies that grant loans secured by registered mortgages on real estate on the basis of the issuance of mortgage bonds must have authorization as a mortgage credit institution and authorization to issue mortgage bonds. Mortgage credit institutions may only carry on business as mentioned in Annex 3 as well as business pursuant to Sections 24-26, subject to paragraph 2.
Paragraph 2. Mortgage credit institutions with authorization pursuant to paragraph 1 may carry on the activities mentioned in Annex 1, Section A, points 1 and 2, of the Act on Securities Dealers and Investment Services and Activities, insofar as they relate to mortgage bonds, covered bonds, special covered mortgage bonds, and instruments derived therefrom, and the activities mentioned in Annex 1, Section A, point 3, as well as the activities mentioned in Annex 1, Section A, point 5, when investment advice is provided in connection with and as a prerequisite for customers' borrowing, redemption, refinancing, or restructuring of a loan secured by a mortgage on real estate. In the provision or performance of investment services and activities by mortgage credit institutions, Section 28, Section 30(4), Sections 45-48, 67 and 94, Section 95(1)-(5) and (7), Sections 96, 108 and 243 and rules issued pursuant thereto, as well as Chapters 22-27 of the Act on Securities Dealers and Investment Services and Activities, apply. Paragraph 3. Mortgage credit institutions and foreign credit institutions that meet the conditions for this in the Act on Mortgage Loans and Mortgage Bonds, etc., have the exclusive right to issue mortgage bonds. Paragraph 4. Financial instruments other than mortgage bonds must not bear this designation or designations likely to create the impression that they are mortgage bonds. Mortgage bonds may bear the designation European Covered Bond. Paragraph 5. Mortgage credit institutions have the exclusive right to use designations such as 'mortgage credit institution', 'mortgage credit limited company', 'credit association' or 'mortgage fund' in their name. KommuneKredit may, however, continue to use the designation Kreditforeningen af Kommuner i Danmark. Other companies must not use names or designations for their business that are likely to create the impression that they are mortgage credit institutions. Paragraph 6. Mortgage credit institutions that have been converted into limited liability companies and have previously used designations such as 'credit association', 'mortgage fund' or 'real estate loan fund' in their name must add the word 'limited liability company' or abbreviations derived therefrom after the name. Paragraph 7. A company applying for authorization pursuant to paragraph 1 must have a share capital of at least an amount corresponding to EUR 5 million. Sections 9–9b. (Repealed)
Section 10. Companies must have authorization as an investment management company to carry out the daily management of investment funds and administer other UCITS, pursuant to Annex 6. Investment management companies may otherwise only carry on business as mentioned in paragraphs 2, 3 and 4 and Sections 10a, 10b and 28.
Paragraph 2. Investment management companies that provide investment services covered by Annex 1, Section A, points 1, 4, 5 and 10, and Section B, point 4, of the Act on Securities Dealers and Investment Services and Activities as a regular occupation or on a professional basis, must have authorization. Activities covered by Annex 1, Section A, points 4 and 5, may be provided with instruments covered by Annex 2 of the Act on Securities Dealers and Investment Services and Activities. Activities covered by Annex 1, Section A, point 10, may only be provided with instruments covered by Annex 2, point 3. The authorization must specify the activities in Annex 1 that the authorization covers. Paragraph 3. An investment management company must have authorization to perform any function or activity for third parties that is already provided by the investment management company in connection with a UCITS that it manages in accordance with its authorization pursuant to paragraph 1 or in connection with services that it performs with authorization pursuant to paragraph 2, first sentence, provided that any potential conflict of interest arising from the provision of this function or activity to other parties is managed appropriately. Paragraph 4. An investment management company must have authorization to administer benchmarks, pursuant to Regulation (EU) 2016/1011 of the European Parliament and of the Council on indices used as benchmarks in financial instruments and financial contracts or with a view to measuring the performance of investment funds. The investment management company cannot be authorized to administer benchmarks used in the UCITS that the investment management company manages. Paragraph 5. In the provision and performance of investment services and activities by investment management companies, Sections 16 April 2026. 10 No. 432.

45-48, 67 and 94, § 95, paragraphs 1-5 and 7, and §§ 96, 108 and 243 and rules issued pursuant thereto, as well as chapters 22-27 of the Act on Fund Brokerage Companies and Investment Services and Activities.

Paragraph 6. Investment management companies may be registered as managers of European Social Entrepreneurship Funds pursuant to Regulation (EU) No 346/2013 of the European Parliament and of the Council of 17 April 2013 on European Social Entrepreneurship Funds.

Paragraph 7. Investment management companies may be registered as managers of Qualified Venture Capital Funds pursuant to Regulation (EU) No 345/2013 of the European Parliament and of the Council of 17 April 2013 on European Venture Capital Funds.

Paragraph 8. Investment management companies and administration companies that meet the conditions in § 1, paragraph 3, and §§ 30 or 31, have the exclusive right to carry out the daily management of investment funds and administer other UCITS.

Paragraph 9. An investment management company must have a share capital of at least an amount equivalent to the value of 125,000 euros. However, an investment management company that must be a member of a regulated market or hold and manage the instruments mentioned in Annex 2, No. 3, of the Act on Fund Brokerage Companies and Investment Services and Activities, including being a member of a securities central or a clearing central where the company participates in clearing and settlement, must have a share capital of at least an amount equivalent to the value of 730,000 euros.

§ 10 a. An investment management company may, in addition to the activities it may carry out under this Act, manage one or more alternative investment funds, provided that the company has permission to do so pursuant to § 11 of the Act on Managers of Alternative Investment Funds etc.

§ 10 b. An investment management company may provide services with crypto-assets as specified in Article 60, paragraph 5, of Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on markets in crypto-assets corresponding to the services for which it has been granted permission under § 10, if the company notifies the Financial Supervisory Authority at least 40 working days before these services are provided for the first time. The notification must be accompanied by the information specified in Article 60, paragraph 7, of Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on markets in crypto-assets.

§ 11. (Repealed)

§ 12. Banks, mortgage credit institutions and investment management companies must be joint-stock companies. Mutual savings banks must be mutual companies, subject to § 207. Savings banks must be independent institutions, subject to § 207. Insurance companies must be joint-stock companies, mutual companies or cross-sectoral pension funds.

Paragraph 2. The financial companies mentioned in paragraph 1 must have a board of directors and an executive board.

Paragraph 3. A mutual savings bank that has not, at the time it becomes subject to § 85 a, established a restriction on voting rights such that each shareholder has 1 vote according to the articles of association, is not considered to be a mutual company.

§ 13. The share capital in financial companies and the share or partnership capital in financial holding companies must be paid in full. Intangible assets cannot be used to pay in share capital.

Paragraph 2. In credit institutions, investment management companies, mortgage credit institutions, and financial holding companies, division of the share capital or partnership capital into classes with different voting values cannot take place, subject to paragraph 3.

Paragraph 3. In mortgage credit institutions that have been converted into joint-stock companies, and where a foundation or association established in connection with the conversion is the main shareholder, the articles of association may provide for a division of the institution's share capital into share classes with and without voting rights. All shares with voting rights must have the same voting value.

Paragraph 4. If a mortgage credit institution, which has been converted into a joint-stock company, and where a foundation or association established in connection with the conversion is the main shareholder, issues non-voting shares, pursuant to paragraph 3, the Company Law's § 73 on redemption rights for minority shareholders and the Company Law's § 70 on redemption rights for the main shareholder do not apply to these shares. If the mortgage credit institution has one or more share classes admitted to trading on a regulated market or an alternative market place and a shareholding is transferred as part of a takeover bid, the first sentence does not apply.

Paragraph 5. A financial company may not acquire its own shares for consideration as property or pledge if the nominal value of the company's and its subsidiaries' total holding of shares in the company as a result of the acquisition will exceed 10 percent. The permitted holding of own shares includes shares acquired by a third party in its own name, but for the account of the company.

Paragraph 6. The Financial Supervisory Authority may set rules for own-issued instruments that can be included in the capital base, including rules on redemption and acquisition of own-issued instruments for investment management companies and for financial holding companies that are not covered by Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions.

§ 13 a. The Company Law's §§ 110, 286, 306 and 318 k do not apply to credit institutions, mortgage credit institutions and financial holding companies.

§ 14. The Financial Supervisory Authority grants permission when

the requirements in §§ 7, 8 or 10 are met,
the members of the applicant's board of directors and executive board meet the requirements in § 64 and for systemically important financial institutions (SIFI) and globally systemically important institutions (G-SIFI) also § 313,
the employees in credit institutions who must be identified as key function holders pursuant to § 64 c, paragraph 1, meet the requirements in § 64,
owners of qualifying holdings, pursuant to § 5, paragraph 3, meet the criteria in § 61 a, paragraph 1,
there are no close links, pursuant to § 5, paragraph 1, No. 17, between the applicant and other companies or persons that could hinder the performance of the supervisory authority's tasks,
the legislation in a country outside the European Union, with which the Union has not concluded an agreement in the financial area, concerning a company or a person with which the applicant has close links, will not hinder the performance of the Financial Supervisory Authority's tasks,
the applicant's business processes and administrative conditions are sound, including that the requirements in § 71 are met,
the applicant, who is seeking permission under § 10, paragraph 1, has at least two natural persons employed on a full-time basis who are resident in the European Union, who determine the investment management company's business conduct, and who meet the requirements in § 64, paragraph 1, or § 64 c, paragraph 9,
the applicant has its head office and domicile in Denmark and
paragraphs 2-4 are met.

Paragraph 2. An application for permission under §§ 7-10 a must contain the information necessary for the Financial Supervisory Authority to assess whether the conditions in paragraph 1 are met, including information on the size of the qualifying holdings and the company's organization. An application for permission under §§ 7 and 8 to carry out credit institution business must contain information on the identity of the 20 largest shareholders, if there are no owners of qualifying holdings. An application under §§ 7-10 a must also contain a business plan containing information on the nature of the intended business.

Paragraph 3. An application under § 10 must also contain an activity plan, which must at a minimum specify the investment management company's organizational structure, with detailed specification of the human and technical resources that will be used to carry out the investment management company's business, and information on the persons who effectively carry out the investment management company's business, including the following elements:

A description of these persons' role, title and position in management.
A description of these persons' reporting lines and areas of responsibility within and outside the investment management company.
An overview of the time that each of these persons allocates to each individual area of responsibility.
Information on how the investment management company intends to comply with its obligations under the rules implementing the European Parliament and Council Directive on the coordination of laws and administrative provisions concerning certain undertakings for collective investment in transferable securities (UCITS), and pursuant to Article 3, paragraph 1, Article 6, paragraph 1, point (a), and Article 13, paragraph 1, of the European Parliament and Council Regulation on sustainability-related disclosures in the financial services sector, and a detailed description of which suitable human and technical resources the investment management company must use for this purpose.

Paragraph 4. An application under § 10 must also contain information on agreements regarding delegation and sub-delegation to third parties of functions pursuant to §§ 102-105, which must at a minimum include the following:

The investment management company's legal name and CVR number.
For any person to whom responsibility is transferred:
a) The person's legal name and CVR number or equivalent foreign identification code, b) the person's home country, and c) where relevant, the person's supervisory authority.
A detailed description of the human and technical resources that the investment management company uses to
a) carry out daily portfolio management or daily risk management tasks in the investment management company and b) monitor the delegated activity.
For each of the UCITS that the investment company manages or intends to manage:
a) A brief description of the delegated portfolio management functions, including whether each of these delegations constitutes a full or partial delegation, and b) a brief description of the delegated risk management functions, including whether each of these delegations constitutes a partial or full delegation.
A description of the regular measures that the investment management company must carry out to monitor the delegated activity.

Paragraph 5. If the Financial Supervisory Authority rejects an application for permission, this must be justified and communicated to the applicant no later than 6 months after receipt of the application, or, if the application is incomplete, no later than 6 months after the applicant has submitted the information necessary to make the decision. A decision must in any case be made no later than 12 months after receipt of the application. If the Financial Supervisory Authority has not made a decision no later than 6 months after receipt of a complete application for permission, the company may bring the matter before the courts.

Paragraph 6. To comply with a provision on suspension from the Commission in accordance with directives in the financial area, the Financial Supervisory Authority may suspend the processing of applications for permission under §§ 7-10 a and 16 from applicants that are directly or indirectly owned by companies with domicile in a country outside the European Union, with which the Union has not concluded an agreement in the financial area.

Paragraph 7. The Financial Supervisory Authority may refuse to grant permission under paragraph 1 if the purpose of placing the head office and domicile in Denmark is solely to avoid being subject to the legislation in the country where the majority of the applicant's customers are domiciled.

Paragraph 8. For financial companies covered by §§ 7 and 8 and § 10, paragraph 2, permission is further conditional on the business joining the Deposit and Investor Guarantee Scheme.

Paragraph 9. For a credit institution or a mortgage credit institution, permission is further conditional on the members of the applicant's board of directors and executive board meeting the requirement to allocate sufficient time, pursuant to § 64 a, and on the applicant's board meeting the requirements for sufficient collective knowledge, professional competence and experience, pursuant to § 64 e, paragraph 1.

Paragraph 10. A life insurance company that applies for permission to carry out non-life insurance business in the same company under § 11, paragraph 12, must, in addition to meeting the requirements for permission, demonstrate that it has the recognized basic capital base to cover the respective absolute minimum for the minimum capital requirement for life insurance companies and the absolute minimum for the minimum capital requirement for non-life insurance companies, pursuant to § 126 d, paragraph 5, Nos. 1 and 2. The company must also demonstrate that it can continue to meet the financial minimum requirements.

Paragraph 11. Investment management companies must notify the Financial Supervisory Authority of significant changes to the conditions for the original permission, in particular significant changes to conditions resulting from the information provided under this provision, before these changes are implemented.

§ 14 a. The Financial Supervisory Authority may grant permission to carry out business under § 7, paragraph 1, § 8, paragraph 1, and § 16 a to a bridge institution established pursuant to § 21, paragraph 1, of the Act on Restructuring and Resolution of Certain Financial Companies, which does not meet all conditions for permission, if the Financial Supervisory Authority assesses that it is necessary in order to achieve resolution objectives. The requirements in Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions must, however, be met. The Financial Supervisory Authority simultaneously with the permission sets a deadline for meeting the requirements to obtain permission under § 7, paragraph 1, and § 8, paragraph 1, pursuant to §§ 14 and 16 a.

Paragraph 2. The Financial Supervisory Authority may also, when Financial Stability establishes a bridge institution pursuant to § 21, paragraph 1, of the Act on Restructuring and Resolution of Certain Financial Companies, exempt Financial Stability from complying with the rules for financial holding companies and mixed holding companies set out in Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions, this Act or rules issued pursuant to the Act, taking into account the purpose of the relevant rules and the resolution objectives. The Financial Supervisory Authority sets a deadline for Financial Stability's exemption from the rules for financial holding companies and mixed holding companies. The deadline may be extended if the conditions in § 22, paragraph 4, of the Act on Restructuring and Resolution of Certain Financial Companies are met.

Paragraph 3. Notwithstanding paragraph 2, chapters 9 and § 181 apply to Financial Stability as a financial holding company or mixed holding company.

§ 15. When the Financial Supervisory Authority has granted permission under § 14, the Business Authority may carry out the necessary registrations.

Paragraph 2. In connection with notification for registration, pursuant to paragraph 1, and notification of changes to the articles of association, the financial company must submit a dated copy of the articles of association with the complete new wording to the Business Authority, which forwards a copy to the Financial Supervisory Authority.

Paragraph 3. Upon granting permission or changes to permission to insurance companies, the Financial Supervisory Authority simultaneously sends a copy thereof to the Business Authority. The Business Authority registers the date of the permission.

Paragraph 4. For savings banks and mutual savings banks, the Company Law's provisions on notification and registration etc. apply correspondingly.

§ 16. The Financial Supervisory Authority may permit credit institutions, mortgage credit institutions and investment management companies to provide services with instruments and contracts that are covered by the Financial Supervisory Authority's decision pursuant to § 4, paragraph 2, of the Capital Markets Act.

§ 16 a. The Financial Supervisory Authority may permit credit institutions and mortgage credit institutions to issue covered bonds.

Paragraph 2. Credit institutions and mortgage credit institutions with permission under paragraph 1 and the ship financing institution with permission under § 2 c of the Act on a Ship Financing Institution have the exclusive right to issue covered bonds. Mortgage credit institutions with permission under paragraph 1 also have the exclusive right to issue covered mortgage bonds. Covered bonds and covered mortgage bonds may bear the designation European Covered Bond (Premium).

Paragraph 3. Bonds issued by credit institutions that have been granted permission in another country within the European Union or a country with which the Union has concluded an agreement in the financial area may also be designated as covered bonds, if they meet the conditions in Article 129 of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions.

Paragraph 4. The Financial Supervisory Authority sets detailed rules on

under what conditions permission may be obtained under paragraph 1, and
under what conditions bonds issued by credit institutions and mortgage credit institutions may obtain and retain the designation covered bonds or covered mortgage bonds.

§ 16 b. A credit institution or a mortgage credit institution may finance loans secured by real estate with covered bonds or covered mortgage bonds issued by another credit institution or mortgage credit institution.

Paragraph 2. Issuance of covered bonds or covered mortgage bonds pursuant to paragraph 1 must be approved by the Financial Supervisory Authority.

§ 16 c. If a loan is to be financed by another credit institution's or mortgage credit institution's issuance of covered bonds or covered mortgage bonds, this must be stated in the loan agreement between the lending credit institution or mortgage credit institution and the borrower. It must also be stated in the loan agreement that information about the borrower may be passed on between the lending institution and the issuing institution, pursuant to § 120 b.

Paragraph 2. It must be stated separately in the loan terms that the lending institution may increase interest rates as a result of changes
16. april 2026. 13 Nr. 432.

regarding financing terms, cf. Section 152 b, subsection 4, and Section 6 of the Act on Mortgage Loans and Mortgage Bonds etc.

Section 16 d. If a credit institution or a mortgage institution grants a loan secured by a mortgage on real estate based on the issuance of covered bonds or covered mortgage bonds by another credit institution or mortgage institution, the loan together with the accompanying mortgage deed shall be transferred to the issuing institution as owner.

Subsection 2. A transfer according to subsection 1 cannot be set aside under Sections 67, 70 or 72 of the Bankruptcy Act. However, set-aside may occur under the aforementioned provisions if the transfer did not specifically appear to be ordinary.

Section 16 e. If a credit institution or a mortgage institution grants a loan secured by a mortgage on real estate based on the issuance of covered bonds or covered mortgage bonds by another credit institution or mortgage institution, the borrower may pay with releasing effect to the lending credit institution or mortgage institution, unless the borrower receives separate notice to the contrary from the issuing credit institution or mortgage institution.

Section 16 f. The lending credit institution or mortgage institution shall keep incoming payments relating to loans secured by a mortgage on real estate based on the issuance of covered bonds or covered mortgage bonds by another credit institution or mortgage institution separate from the institution's other funds.

Subsection 2. The lending credit institution or mortgage institution shall carry out continuous control of the separation.

Subsection 3. The lending credit institution or mortgage institution shall settle incoming payments to the issuing institution according to a pre-established plan.

Subsection 4. The Danish Financial Supervisory Authority shall establish detailed rules on:

which assets the lending credit institution or mortgage institution may place incoming payments in until settlement takes place, and
the lending credit institution's or mortgage institution's control of separation and settlement to the issuing credit institution or mortgage institution.

Section 16 g. In the event of bankruptcy of the lending credit institution or mortgage institution, payments covered by Section 16 f, cf. Section 16 b, subsection 1, which the lending credit institution or mortgage institution has received and which have not yet been settled, shall belong to the issuing credit institution or mortgage institution outside of the bankruptcy estate.

Section 17. The Danish Financial Supervisory Authority shall establish rules on which instruments and contracts, in addition to the financial instruments mentioned in Annex 2 of the Act on Securities Firms and Investment Services and Activities, credit institutions may perform services with.

Sections 18-23 a. (Repealed)

Chapter 4
Other Permitted Business
General Rules on Other Permitted Business

Section 24. Credit institutions and mortgage institutions may conduct business that is ancillary to the business for which permission has been granted. Digital solutions and services connected with or naturally following from the permitted business are also considered ancillary business. The Danish Financial Supervisory Authority may determine that the ancillary business shall be conducted by another company.

Subsection 2. Credit institutions and mortgage institutions may through subsidiaries conduct other financial business.

Section 25. Credit institutions and mortgage institutions may temporarily conduct other business to secure or liquidate previously assumed exposures or with a view to participating in the restructuring of commercial businesses. The financial business shall notify the Danish Financial Supervisory Authority thereof.

Section 26. Credit institutions and mortgage institutions may, regardless of Sections 7, 8, 24 and 25, jointly with others conduct other business if:

the financial business does not directly or indirectly have decisive influence on the business,
the financial business does not conduct the business together with financial businesses that are part of the same group as the financial business, and
the business is conducted in another company than the financial business.

Subsection 2. If a credit institution, mortgage institution, investment management company or a group comes to conduct other business in violation of Section 7, subsection 1, Section 8, subsection 1, or Section 26, subsection 1, through acquisition, merger etc., the Danish Financial Supervisory Authority may set a deadline for the disposal of the other business if an immediate disposal would be associated with an economic loss.

Subsection 3. Credit institutions may, regardless of Sections 7, 24 and 25 and the rules in subsections 1 and 2, exercise certain activities that are not covered by permitted ancillary business, if the activity follows from the credit institution's banking operations and the following conditions are met:

The activities are conducted in another company than the credit institution, and the risks are enclosed therein.
The company in which the activities are conducted is a subsidiary of the credit institution.
The company in which the activities are conducted is independently capitalized.
The company in which the activities are conducted does not constitute a significant part of the credit institution's activities.

Section 27. (Repealed)

Special Rules for Investment Management Companies Regarding Subsidiaries

Section 28. Investment management companies may not have subsidiaries, unless these are investment management companies or administration companies.

16 April 2026. 14 No. 432.

Sections 29-29 b. (Repealed)

Chapter 5
Foreign Businesses
General Rules on Foreign Businesses

Section 30. A foreign business that has been granted permission to conduct the business mentioned in Sections 7-10 a in another country within the European Union or in a country with which the Union has concluded an agreement in the financial area may begin to conduct business in this country through a branch 2 months after the Danish Financial Supervisory Authority has received notice thereof from the supervisory authorities in the home country, cf. subsections 4 and 6-9. The branch may conduct the activities mentioned in Annexes 2 and 3 and in Annex 1 of the Act on Securities Firms and Investment Services and Activities, provided these are covered by the business's permission in the home country. The first sentence applies correspondingly to credit institutions that have been granted permission to perform activities as mentioned in Annex 1 of the Act on Securities Firms and Investment Services and Activities in another country within the European Union or in a country with which the Union has concluded an agreement in the financial area, and which will perform such activities in this country through an associated agent established in this country, if the activities are covered by the institution's or company's permission in the home country.

Subsection 2. Issuance of mortgage bonds, cf. Annex 3, may only be conducted by credit institutions that meet the conditions for this in the Act on Mortgage Loans and Mortgage Bonds etc.

Subsection 3. If the business is an administration company, cf. Section 5, subsection 1, no. 4, the branch may:

administer UCITS, and
conduct the activities mentioned in Annex 1, Section A, no. 4, 5 and 10, in the Act on Securities Firms and Investment Services and Activities, provided these are covered by the administration company's permission in the home country.

Subsection 4. The Danish Financial Supervisory Authority shall obtain the following information from the home country's supervisory authorities:

A description of the branch's business, including information on organization and planned activities,
a declaration that the planned activities are covered by the business's permission in the home country,
the branch's address,
the names of the branch's management, and
for credit institutions that have been granted permission to perform activities as mentioned in Annex 1 of the Act on Securities Firms and Investment Services and Activities, information on whether the branch intends to use associated agents, and the identity of these.

Subsection 5. If the business is a credit institution that has been granted permission to perform activities as mentioned in Annex 1 of the Act on Securities Firms and Investment Services and Activities in another country within the European Union or in a country with which the Union has concluded an agreement in the financial area, and which wishes to perform such activities in this country through an associated agent established in this country without establishing a branch, the Danish Financial Supervisory Authority shall obtain the following information from the home country's supervisory authorities:

A description of the associated agent's business, including a description of the planned use of the associated agent.
Information on the credit institution's organization, including reporting lines indicating how the relevant agent is integrated into the business structure.
The associated agent's name and address as well as the associated agent's management.

Subsection 6. If the business is a credit institution, the Danish Financial Supervisory Authority shall furthermore obtain information on the size of the business's capital base and solvency ratios and information on any guarantee scheme in the home country covering the branch's depositors or investors.

Subsection 7. If the business is an administration company, cf. Section 5, subsection 1, no. 4, the Danish Financial Supervisory Authority shall furthermore obtain information on any guarantee scheme in the home country covering the branch's investors. When an administration company wishes to offer administration in this country, the Danish Financial Supervisory Authority receives from the home country's competent authority a confirmation that the company is approved under the UCITS Directive, a description of the scope of the company's permission and any limitations on which investment institutions the company has permission to administer, as well as a description of the company's risk management process and procedures for handling complaints from investors.

Subsection 8. The business shall notify the Danish Financial Supervisory Authority of any changes to the matters mentioned in subsection 4, no. 1-5, and subsections 5-9, at the latest 1 month before the change is made. If it is not possible to notify the Danish Financial Supervisory Authority of the change at the latest 1 month before the change is made, notification shall be made as soon as possible. The business shall, however, not notify the Danish Financial Supervisory Authority of changes in the businesses' capital bases and solvency ratios.

Subsection 9. The provisions of the Companies Act regarding branches of foreign joint-stock companies apply to the branches mentioned in subsection 1.

Section 31. A foreign business that has been granted permission to conduct the business mentioned in Sections 7-10 a in another country within the European Union or in a country with which the Union has concluded an agreement in the financial area may begin to provide services in this country when the Danish Financial Supervisory Authority has received notice thereof from the supervisory authorities in the home country. The foreign business may conduct the activities mentioned in Annexes 2 and 3 and in Annex 1 of the Act on Securities Firms and Investment Services and Activities, when the supervisory authorities in the home country have declared that these are covered by the business's permission in the home country. If the foreign business is a credit institution that has been granted permission to perform activities as mentioned in Annex 1 of the Act on Securities Firms and Investment Services and Activities, the Danish Financial Supervisory Authority must furthermore have received information from the supervisory authorities in the home country on whether the business wishes to perform activities as mentioned in Annex 1 of the Act on Securities Firms and Investment Services and Activities through associated agents established in

16 April 2026. 15 No. 432.

the home country, as well as the identity of these. If the foreign business is an administration company, the Danish Financial Supervisory Authority must have received from the supervisory authorities in the home country a business plan over the administration company's intended tasks and services, cf. subsection 3, and further information on relevant guarantee schemes intended to protect investors. When an administration company wishes to offer administration in this country, the Danish Financial Supervisory Authority receives from the home country's competent authority a confirmation that the company is approved under the UCITS Directive, a description of the scope of the company's permission and any limitations on which investment institutions the company has permission to administer, as well as a description of the company's risk management process and procedures for handling complaints from investors.

Subsection 2. Issuance of mortgage bonds, cf. Annex 3, may only be conducted by credit institutions that meet the conditions for this in the Act on Mortgage Loans and Mortgage Bonds etc.

Subsection 3. If the business is an administration company, the business may:

administer UCITS, and
conduct the activities mentioned in Annex 1, Section A, no. 4, 5 and 10, in the Act on Securities Firms and Investment Services and Activities, provided these are covered by the administration company's permission in the home country.

Subsection 4. The procedure in subsection 1 applies correspondingly when an administration company delegates the marketing of shares in the host country to an investment management company.

Section 32. A foreign business may use the same name as the business uses in the home country. If there is a risk of confusion with another name used in this country, the Danish Business Authority may demand an explanatory addition.

Special Rules for Foreign Credit Institutions

Section 33. A foreign credit institution that has been granted permission in a country outside the European Union, with which the Union has not concluded an agreement in the financial area, and for which country the Commission has not adopted a decision as referred to in Article 47, subsection 1, of Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments, or where such a decision is no longer valid, shall have permission from the Danish Financial Supervisory Authority to provide investment services or perform investment activities with or without ancillary services, cf. the Act on Securities Firms and Investment Services and Activities, in this country to approved counterparties or professional customers.

Subsection 2. A credit institution that has been granted permission in a country outside the European Union, with which the Union has not concluded an agreement in the financial area, which wishes to provide investment services or perform investment activities with or without ancillary services, cf. the Act on Securities Firms and Investment Services and Activities, in this country to retail customers or customers who can be treated as professional customers upon request, shall have branch permission in accordance with Section 33 a, subsection 1.

Subsection 3. The requirement in subsection 2 does not cover the provision of investment services or investment activities that are initiated exclusively on the relevant customers' own initiative.

Subsection 4. The Danish Financial Supervisory Authority may refuse permission, cf. subsection 1, if the legislation in the country where the credit institution has been granted permission and is under supervision will make it difficult for the Danish Financial Supervisory Authority to perform its tasks.

Subsection 5. The Danish Financial Supervisory Authority may withdraw a permission, cf. subsection 1, if the credit institution no longer meets the requirements for obtaining a permission, or if the Danish Financial Supervisory Authority cannot normally collect tax payment according to Section 363 b, subsection 4.

Subsection 6. The Danish Financial Supervisory Authority shall establish detailed rules on the permission procedure, cf. subsection 1, including which documentation shall be sent to the Danish Financial Supervisory Authority in connection with the application.

Section 33 a. A foreign credit institution that has been granted permission in a country outside the European Union, with which the Union has not concluded an agreement in the financial area, shall have permission from the Danish Financial Supervisory Authority to provide investment services or perform investment activities with or without ancillary services, cf. the Act on Securities Firms and Investment Services and Activities, in this country through a branch.

Subsection 2. A foreign credit institution shall submit the following information to the Danish Financial Supervisory Authority for the purpose of the Authority's processing of the application for permission, cf. subsection 1:

The name of the competent authority in the home country, and if there are several competent authorities, information on their respective areas of competence.
Information on the foreign credit institution's name, legal form, statutory seat and address, members of the management body and relevant shareholders.
A description of the branch's business, including information on organization and planned activities, as well as a description of any outsourcing of significant operational functions to third parties.
The names of the persons responsible for the management of the branch, as well as documentation that they meet the requirements in Section 14, subsection 1, no. 2, and Section 14, subsection 9.
Information on the start capital that the branch has free disposal over.

Subsection 3. The Danish Financial Supervisory Authority grants permission, cf. subsection 1, when it is demonstrated that:

the activities for which permission is sought are covered by the foreign credit institution's permission and are subject to supervision in the home country,
there is an international cooperation agreement between the Danish Financial Supervisory Authority and the competent authorities in the foreign credit institution's home country, including provisions on information exchange with a view to preserving market integrity and protecting investors,
the branch has free disposal over sufficient start capital,
the branch's management meets the requirements in Section 14, subsection 1, no. 2, and Section 14, subsection 9,
the foreign credit institution's home country has concluded an agreement with Denmark that fully complies with the standards in Article 26 of the Organisation for Economic Co-operation and Development (OECD)...

16 April 2026. 16 No. 432.

OECD Model Tax Convention on Income and on Property, and which ensures effective information exchange on tax matters, including multilateral tax agreements,
6) the foreign credit institution is part of an investor guarantee scheme approved or recognized in accordance with Directive 97/9/EC of the European Parliament and of the Council of 3 March 1997 on investor-compensation schemes, and
7) the branch will be able to meet the requirements of Sections 43-45, 47, 48 and 94, Section 95, subsections 1, 2 and 7, and Sections 96 and 108 of this Act, Sections 88-95, 98-109, 114 and 135-140, Section 196, subsection 2, and Sections 214 and 218 of the Act on Capital Markets, as well as Articles 3-26 of Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and measures adopted pursuant thereto.
Subsection 4. The Financial Supervisory Authority shall decide within 6 months after receipt of a complete application whether a permit may be granted.
Subsection 5. Sections 223 and 224 apply mutatis mutandis to the withdrawal of a permit granted pursuant to subsection 1. In addition to the cases mentioned in Sections 223 and 224, the Financial Supervisory Authority may withdraw a permit granted pursuant to subsection 1 if the Financial Supervisory Authority cannot normally collect the tax payment pursuant to Section 363 a and Section 363 b, subsection 3. Sections 34-37 a. (Repealed) Danish financial businesses and certain financing institutions' business abroad
Section 38. A financial business wishing to establish a branch in another country shall notify the Financial Supervisory Authority of this together with the following information about the branch:

In which country the branch is to be established,
a description of the branch's business, including information on its organization, and the planned activities,
the branch's address,
the names of the branch's management, and
for credit institutions and mortgage credit institutions, whether the branch intends to use attached agents, and the identity of these.
Subsection 2. A credit institution or a mortgage credit institution wishing to carry out activities as mentioned in Annex 1 to the Act on Securities Firms and Investment Services and Activities through an attached agent established in a country within the European Union or in a country with which the Union has concluded an agreement in the financial area, where the company or institution has not established a branch, shall notify the Financial Supervisory Authority of this together with the following information:
In which country the attached agent is established.
A description of the attached agent's business, including a description of the planned use of the attached agent.
Information on the company's or institution's organization, including reporting lines indicating how the relevant agent is integrated into the corporate structure.
The name and address of the attached agent and the management of the attached agent.
Subsection 3. Upon establishment of a branch or use of an attached agent established in a country within the European Union or in a country with which the Union has concluded an agreement in the financial area, the Financial Supervisory Authority shall forward the information mentioned in subsections 1 and 2 to the supervisory authorities in the host country. For credit institutions and mortgage credit institutions, solvency ratios shall also be sent to the supervisory authorities in the host country. At the same time, a declaration shall be sent stating that the planned activities are covered by the financial business's permit. Subsection 4. If the branch is established or an attached agent is used in a country within the European Union or in a country with which the Union has concluded an agreement in the financial area, and the business is a credit institution, a mortgage credit institution, or an investment management company, the Financial Supervisory Authority shall also send information on the investor and deposit guarantee scheme, and for credit institutions and mortgage credit institutions, information on the business's capital base. For investment management companies, the Financial Supervisory Authority shall notify the host country's supervisory authorities of changes in the information on the investor and deposit guarantee scheme. Subsection 5. The information pursuant to subsections 3 and 4 shall be sent no later than 3 months after receipt of the information. At the same time as sending, the Financial Supervisory Authority shall notify the financial business of this. Subsection 6. The Financial Supervisory Authority may refrain from forwarding information pursuant to subsections 3 and 4 if there is reason to doubt that the business's administrative structure and financial situation are sound as a basis for the intended establishment. The Financial Supervisory Authority shall notify the business of this no later than 2 months after receipt of the information mentioned in subsection 1. Subsection 7. The business shall notify the Financial Supervisory Authority of any changes in the matters mentioned in subsections 1 and 2. The Financial Supervisory Authority must receive the notification no later than 1 month before the change is made. If it is not possible to notify the Financial Supervisory Authority of the change no later than 1 month before the change is made, notification shall be made as soon as possible. The business is obliged to do the same vis-à-vis the host country's supervisory authorities if the host country is another country within the European Union or countries with which the Union has concluded an agreement in the financial area. The Financial Supervisory Authority shall notify the investment management company within 15 working days after receipt of the information as mentioned in the first sentence that the investment management company may not initiate the change of the branch if the investment management company
no longer complies with Directive 2009/65/EC of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) as a result of the change. Subsection 8. A financial business must have the Financial Supervisory Authority's permission to establish a branch in a country outside the European Union, with which the Union has not concluded an agreement in the financial area. If there is reason to doubt that the business's administrative structure and financial situation are sound as a basis for the intended establishment, the Financial Supervisory Authority may refuse an application for permission.
Section 38 a. (Repealed)
Section 38 b. A financing institution which is a subsidiary of a credit institution or a mortgage credit institution or is a jointly owned company of several credit institutions or several mortgage credit institutions shall notify the Financial Supervisory Authority before the financing institution establishes a branch in another Member State within the European Union or in a country with which the Union has concluded an agreement in the financial area. The financing institution shall, together with the notification, provide the Financial Supervisory Authority with the information mentioned in Section 38, subsection 1, and state the size and composition of the financing institution's capital base.
Subsection 2. The Financial Supervisory Authority shall send the information mentioned in subsection 1 and information on the parent companies' risk exposure amounts to the host country's supervisory authorities no later than 3 months after receipt of the information.
Section 39. A financial business wishing to carry on business in the form of cross-border services in a country within the European Union or in a country with which the Union has concluded an agreement in the financial area shall notify the Financial Supervisory Authority of this, stating in which country the business is to be started and which activities are to be carried out. Credit institutions and mortgage credit institutions shall also provide information if they wish to carry out activities as mentioned in Annex 1 to the Act on Securities Firms and Investment Services and Activities through attached agents based in Denmark, and the identity of these. Investment management companies shall also submit a business plan for intended tasks and services and more detailed information on relevant guarantee schemes intended to protect investors.
Subsection 2. The Financial Supervisory Authority shall forward the notification mentioned in subsection 1 and a declaration that the planned activities are covered by the business's permit to the supervisory authorities in the host country no later than 1 month after receipt of the notification mentioned in subsection 1. If the Financial Supervisory Authority does not send the notification or the declaration mentioned in the first sentence within the deadline, the Financial Supervisory Authority shall notify the business of the reasons for this. If the business is a credit institution or a mortgage credit institution, the Financial Supervisory Authority shall also notify the supervisory authorities in the host country of the identity of the attached agents the business intends to use. If the business is an investment management company, the Financial Supervisory Authority shall also send information on the investor and deposit guarantee scheme. Subsection 3. If the business is an investment management company, the company is obliged to notify the Financial Supervisory Authority and the host country's supervisory authorities of any changes in the matters mentioned in subsection 1 no later than one month before the changes are made. If it is not possible to notify the Financial Supervisory Authority of the change no later than one month before the change is made, notification shall be made as soon as possible. Subsection 4. An investment management company that delegates the marketing of shares in another country within the European Union or in a country with which the Union has concluded an agreement in the financial area to a third party shall use the procedure mentioned in Section 31, subsection 1. Subsection 5. A financial business wishing to provide services in a country outside the European Union or in a country with which the Union has not concluded an agreement in the financial area shall notify the Financial Supervisory Authority of this no later than 1 month before the activities begin, stating in which country the business is to be started and which activities are to be carried out. If it is not possible to notify the Financial Supervisory Authority of this no later than 1 month before the activities begin, notification shall be made as soon as possible. Subsection 6. The businesses shall notify the Financial Supervisory Authority of any changes in the activities mentioned in subsection 6 no later than 1 month before the change is made. If it is not possible to notify the Financial Supervisory Authority of the change within this deadline, notification shall be made as soon as possible. Investment management companies' administration of investment institutions that are UCITS from a branch or as a cross-border service
Section 39 a. An investment management company wishing to administer UCITS from a branch in another country within the European Union or in a country with which the Union has concluded an agreement in the financial area, or as cross-border services, shall, in addition to sending the information appearing in Sections 38 and 39 to the Financial Supervisory Authority, send a description of the company's risk management process and procedures for handling investor complaints. When the Financial Supervisory Authority forwards the information mentioned in the first sentence to the supervisory authorities in the host country, the Financial Supervisory Authority shall also send confirmation that the company is approved under the UCITS Directive, and a description of the scope of the company's permit and any limitations on which UCITS the company has permission to administer.
Subsection 2. An investment management company administering UCITS as mentioned in subsection 1 shall comply with the Act's rules on investment management companies' business, including Sections 70 and 71 on organization, procedures for risk management and internal reporting, and Sections 102-105 on delegation.
Subsection 3. An investment management company administering UCITS as mentioned in subsection 1 shall comply with the rules that a UCITS' home country has established regarding the UCITS' establishment and operation, including the rules applicable to
establishment and approval of UCITS,
issuance and redemption of shares and stocks,
investment policy and investment limits, including the calculation of total risk exposure and gearing,
restrictions on borrowing, lending and naked trading,
valuation of a UCITS' assets and accounting,
calculation of the issue or redemption price and errors in the calculation of the net asset value, and compensation to investors in this connection,
distribution or reinvestment of dividends,
requirements for reporting and publication, including of the prospectus, the key investor information, and periodic reports that the relevant UCITS must comply with,
measures regarding marketing,
relations with participants,
merger and restructuring of a UCITS,
dissolution and liquidation of a UCITS,
the content and form of any register of participants,
fees for approval and supervision of a UCITS, and
exercise of participants' voting rights and other participant rights pursuant to items 1-13.
Subsection 4. The investment management company shall comply with the obligations set out in a UCITS' fund regulations or articles of association and in the prospectus, which must be in accordance with the rules established in the home country, cf. subsection 3.
Subsection 5. The competent authorities in a UCITS' home country are responsible for supervising that subsections 3 and 4 are complied with.
Subsection 6. The investment management company's board of directors makes the decision and is responsible for adopting and implementing the measures and organizational decisions necessary for the investment management company to comply with the rules for the establishment and operation of UCITS, cf. subsection 3, and the obligations set out in the fund regulations or articles of association, as well as the obligations set out in the prospectus. Subsection 7. The Financial Supervisory Authority is responsible for supervising that the investment management company's measures and organization are sufficient so that the investment management company is able to comply with the obligations and rules relating to the establishment and operation of the UCITS it administers. Subsection 8. An investment management company administering a UCITS based in another country within the European Union or in a country with which the Union has concluded an agreement in the financial area shall enter into a written agreement with the depositary on the information exchange necessary for the depositary to perform its duties.
Section 39 b. An investment management company intending to administer a UCITS established in another country within the European Union or in a country with which the Union has concluded an agreement in the financial area shall send the following documentation to the competent authorities in the relevant UCITS' home country:
The written agreement with the depositary mentioned in Section 39 a, subsection 8.
Information on delegation of tasks within investment management and administration as mentioned in Annex II to the UCITS Directive.
Subsection 2. If an investment management company already administers other UCITS of the same type in the relevant UCITS' home country, reference to the documentation, cf. subsection 1, already sent to the competent authorities is sufficient.
Subsection 3. The investment management company shall notify the competent authorities in the administered UCITS' home country of any subsequent significant changes in the documentation mentioned in subsection 1.
Danish financial businesses' subsidiaries abroad
Section 40. A financial business wishing to establish a subsidiary, which is a credit institution, an investment company, or an insurance business, in a country outside the European Union, with which the Union has not concluded an agreement, must have the Financial Supervisory Authority's permission for this. If there is reason to doubt that the business's administrative structure and financial situation are sound as a basis for the intended establishment, the Financial Supervisory Authority shall not grant permission.
Subsection 2. A financial business shall notify the Financial Supervisory Authority of the establishment of subsidiaries in a country outside the European Union, with which the Union has not concluded an agreement, that are not covered by subsection 1.
Section 41. (Repealed)
Section 42. (Repealed)
Section III
Good Conduct etc.
Chapter 6
Good Conduct, Price Information and Contractual Relations General rules on good conduct, price information and contractual relations
Section 43. Financial businesses and financial holding businesses shall be conducted in accordance with honest business practices and good practice within the business area.
Subsection 2. The Minister for Business shall establish detailed rules on honest business practices and good practice for the financial businesses. The Minister for Business shall, cf. first sentence, establish rules on the content of a basic deposit account and on the size of any fee for such an account.
Subsection 3. The Minister for Business shall establish rules on cost, commission, price and risk information for financial services.
Subsection 4. The Minister for Business shall establish rules on competence requirements for employees in credit institutions, mortgage credit institutions, investment management companies, providers of crypto-asset services, and branches of foreign credit institutions. The Minister shall also establish rules on competence requirements for employees in credit institutions and mortgage credit institutions who present, offer, advise on, or administer mortgage credit agreements. Subsection 5. The Minister for Business shall establish detailed rules on the issuance of key investor information to retail investors when financial businesses mediate shares in Danish UCITS. Subsection 6. The Financial Supervisory Authority may, after consultation with representatives of consumers and the relevant financial industry organizations, draw up and publish guidelines for honest business practices and good practice on specified

April 2026. 19 No. 432.

areas that may be considered significant, particularly from the consumer's perspective.

Subsection 7. The Minister of Business Affairs shall establish rules regarding financial companies' obligation to deliver a standardized key information document to consumers when offering mortgage and mortgage-like loans.

§ 43a. Actions contrary to rules issued pursuant to § 43, subsection 2, incur liability for damages in accordance with the general rules of Danish law.

Processing of Personal Identification Numbers

§ 43b. Financial companies may process information about personal identification numbers for the purpose of necessary unique identification in relation to existing customer relationships when performing administrative tasks and providing advice.

§ 44. (Repealed)

Special Rules on Contractual Relationships for Credit Institutions, Mortgage Credit Institutions, and Insurance Companies

§ 45. If subordinated loan capital is issued in the form of bulk debt certificates, the financial company must designate these capital certificates.

§ 46. When a credit institution or mortgage credit institution subscribes to capital contributions covered by the rules on hybrid core capital and the rules on subordinated loan capital, the company must not simultaneously loan-finance the purchase of such capital contributions by retail customers and professional customers, or parts thereof.

Subsection 2. The prohibition on loan-financing mentioned in subsection 1 applies correspondingly to the subscription and sale of shares or partnership or guarantee certificates by credit institutions, mortgage credit institutions, and financial holding companies, regardless of whether the loan is granted by the institution or the company itself or by a company affiliated within the same group with the relevant institution or financial holding company. Notwithstanding the first sentence, credit institutions, mortgage credit institutions, and financial holding companies may loan-finance the purchase of employee shares within the group as part of an employee share scheme.

Subsection 3. Subsection 2 applies only to financial holding companies where at least one subsidiary is a credit institution or a mortgage credit institution.

Special Rules for Credit Institutions, Mortgage Credit Institutions, and Investment Management Companies

§ 46a. (Repealed)

§ 46b. (Repealed)

Special Rules for Credit Institutions

§ 47. If, in a business context, a guarantee has been provided for a loan granted by a credit institution, and the borrower defaults on the payment of principal, installments, or interest, written notice must be given to any of the guarantors or to the one or more of them authorized to receive notice on behalf of all guarantors, no later than 6 months after the due date of the relevant payments. Failure to do so results in the credit institution losing its claim against the guarantors, to the extent that their right of recourse against the borrower has been impaired by the failure.

§ 48. Before entering into an agreement on a guarantee obligation outside of a business context for loans or credits granted by a credit institution, the credit institution must ensure that the guarantor is sufficiently informed about the content of the agreement and the consequences of assuming a guarantee obligation. This information must include details on what the specific guarantee obligation entails and contain a balanced description of the risks associated with it. Furthermore, the credit institution must, with the consent of the debtor whose debt is secured by the guarantee, deliver:

the latest annual tax assessment from SKAT,
the latest three payslips, or
the latest annual accounts, if guaranteeing the debt of a business operator.

Subsection 2. A credit institution that has not complied with subsection 1 may only enforce the guarantee obligation if the guarantor has had a sound basis for assessing the risks associated with entering into the guarantee obligation through other means.

Subsection 3. Guarantee agreements under subsection 1 must be drawn up on paper or another durable medium to be enforceable.

Subsection 4. A guarantor cannot be liable for an amount greater than the principal of the loan or the maximum amount of the credit at the time the guarantee agreement is entered into.

Subsection 5. For guarantee agreements under subsection 1, the credit institution must annually notify the guarantor in writing of the size of the debt item for which the guarantee is provided.

Subsection 6. If the borrower defaults on the payment of principal, installments, or interest, notice thereof must be given to the guarantor on paper or another durable medium no later than 3 months after the due date of the relevant payments. The first sentence applies correspondingly if the credit institution grants the borrower a moratorium without the guarantor's consent.

Subsection 7. If the deadline in subsection 6 is exceeded, the guarantee obligation may only be enforced against the guarantor for the amount that the borrower's debt under the secured claim would have amounted to if the borrower had paid all payments timely until the time point that is 3 months prior to the time point when notice is given.

Subsection 8. Exceeding the deadline in subsection 6 results, regardless of subsection 7, in the credit institution losing its claim against the guarantor, to the extent that the guarantor's right of recourse against the borrower has been impaired.

Subsection 9. A guarantee obligation under subsection 1 expires after 10 years, or if the guarantee agreement was entered into to secure a credit with a variable amount or a loan without a fixed due date, after 5 years, unless the obligation has been enforced by the credit institution beforehand. The first sentence does not apply to loans that, according to their terms, can be financed by the issuance of special covered bonds, provided the guarantor has been explicitly informed thereof and of the consequences thereof.

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Subsection 10. An agreement on a guarantee obligation under subsection 1 may be set aside wholly or partially if it is disproportionate to the guarantor's financial situation.

Subsection 11. Subsections 1-10 apply correspondingly to third-party pledges outside of business contexts.

§ 48a. §§ 53b and 53c also apply to credit institutions when they grant mortgage-like loans.

Subsection 2. § 53d also applies to credit institutions when they grant mortgage-like loans and the credit institution has notified an increase in an interest margin.

Subsection 3. Subsections 1 and 2 do not apply to pre-agreed changes in interest rates, interest ceilings, or interest floors, when these changes, according to the agreement, can only be implemented with at least 3 years between them.

§ 49. If a savings bank has lost part of its guarantee capital, the savings bank must provide information about this to persons wishing to enter as guarantors.

Subsection 2. If a cooperative bank has lost part of its cooperative capital, the cooperative bank must provide information about this to persons wishing to subscribe to cooperative capital.

Subsection 3. The rules applicable to joint-stock companies regarding the reduction of share capital apply with the necessary adaptations to the reduction of cooperative capital in cooperative banks.

§ 50. Capital pension, rate savings, self-pension, old-age savings, child savings, and housing savings in a credit institution may be placed on a deposit account either in cash or as pooled deposits and may further be placed in a separate depot.

Subsection 2. A credit institution must not receive and retain fees, commissions, or other monetary and non-monetary benefits paid by a third party or a person acting on behalf of a third party in connection with customers' savings in pools covered by rules issued pursuant to subsection 4, first sentence. If the credit institution receives such commissions, etc., as mentioned in the first sentence, they must be forwarded to the pool as soon as possible. The first sentence does not apply to non-monetary benefits of minor value that can increase the quality of the service delivered to the customer and that cannot prevent the credit institution from fulfilling its duty to act in the customer's best interest. Such non-monetary benefits must be clearly disclosed to the customer.

Subsection 3. The Minister of Business Affairs may establish detailed rules on which non-monetary benefits are covered by subsection 2, third and fourth sentences, and on requirements for credit institutions' handling of received fees, commissions, or other monetary and non-monetary benefits paid by a third party or a person acting on behalf of a third party.

Subsection 4. The Danish Financial Supervisory Authority establishes detailed rules for savings in pools in a credit institution, including rules on the placement of funds, administration, accounting, audit, and customer information. The Danish Financial Supervisory Authority also establishes detailed rules on the placement of funds in securities and on the liquidation of investments in assets, including registration and de-registration in a securities central, account statements, valuation, and deposit.

§ 51. Capital pension, rate savings, self-pension, and old-age savings placed on a deposit account must be fully covered by the Deposit and Investor Guarantee Scheme, by a corresponding scheme in the credit institution's home country in the event of the credit institution's restructuring proceedings and bankruptcy, or by a combination of both schemes.

§ 52. Credit institutions and branches of credit institutions with statutory domicile in another country within the European Union or in a country with which the Union has concluded an agreement in the financial area, which the Danish Financial Supervisory Authority has approved as a depositary company, cf. § 2, No. 11, in the Act on Investment Funds etc., for a Danish UCITS, must as depositary company act independently and exclusively in the interest of the relevant Danish UCITS.

Special Rules for Mortgage Credit Institutions

§ 53. A mortgage credit institution must inform the borrower in the loan agreement that mortgage loans granted in violation of the Act on Mortgage Loans and Mortgage Bonds etc. may be reduced pursuant to this Act.

Subsection 2. If a mortgage loan pursuant to the Act on Mortgage Loans and Mortgage Bonds etc. is to be reduced, the mortgage credit institution must provide as compensation a loan on similar terms, such that the borrower is placed in an unchanged position. All loan costs associated with the restructuring are borne by the mortgage credit institution.

Subsection 3. The borrower has no claim to a restructuring under subsection 2 if the mortgage credit institution proves that the borrower knew or should have known that the mortgage loan was granted in violation of the provisions of the Act on Mortgage Loans and Mortgage Bonds etc., or if the violation of the aforementioned provisions otherwise is due to information provided by the borrower.

§ 53a. §§ 48, subsections 1-8, 10, and 11, apply correspondingly to mortgage credit institutions, cf. however subsection 2.

Subsection 2. § 48, subsection 4, does not apply to mortgage loans when the mortgaged property is used for residence by the guarantor and the borrower, and the guarantor has been explicitly informed that the liability may exceed the principal of the loan at the time the guarantee agreement is entered into.

§ 53b. A mortgage credit institution may not in ongoing customer relationships change interest rates, fees, contributions, or other remuneration for mortgage loans to the detriment of the consumer without prior notice of 6 months.

Subsection 2. A notice under subsection 1 must contain a justification for the change. The justification must specify:

the circumstances that triggered the change and a reference to the parts of the contractual basis that contain the right to implement the change, and
information on the most significant circumstances that have had an impact on the extent of the change, and the estimated share of these circumstances in the total increase.

Subsection 3. A notice under subsection 1 must further contain the following information:

The market value of the consumer's loan. If the market value is not fixed, the mortgage credit institution must inform the consumer thereof and of how the consumer can obtain information on the current market value.

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Information that the consumer has the possibility to redeem the loan and restructure it into another loan in the same institution or with another lender, and under which conditions the consumer can redeem the loan.
Information that other lenders can be found on price portals operated by private providers and on the price portal for housing loans.

Subsection 4. In the event of changes to interest rates, contributions, and significant changes to other remuneration or the collection of a new remuneration, the notice must be given to the consumer on paper or another durable medium. The notice must reach the consumer no later than 6 months before the change takes effect.

Subsection 5. Subsections 1, 3, and 4 do not apply to changes justified by external circumstances over which the mortgage credit institution has no influence.

§ 53c. A mortgage credit institution may only enforce a change in interest rates, fees, contributions, or other remuneration if the mortgage credit institution has observed § 53b, subsections 1, 2, and 4, cf. however subsection 2 and § 53b, subsection 5.

Subsection 2. Subsection 1 does not apply to insignificant increases in fees and other remuneration other than interest rates and contributions.

§ 53d. If a mortgage credit institution has notified a consumer of an increase in a contribution, cf. § 53b, subsection 1, and the consumer has terminated the relevant mortgage loan within 6 months from the day the notice reached the consumer, to redemption on the first possible date with the chosen redemption method, but no later than a payment term 6 months after the termination, the mortgage credit institution may not collect fees in connection with the redemption of the relevant mortgage loan. The mortgage credit institution may, however, collect half of the fees that are collected in connection with a bond transaction for the purpose of redeeming the mortgage loan. The mortgage credit institution is obliged to carry out the bond transaction upon the consumer's request.

Subsection 2. If a mortgage credit institution grants a consumer a loan for the purpose of redeeming a mortgage loan or mortgage-like loan in cases where the consumer has terminated the relevant loan due to a notified increase in contributions or interest margins within 6 months from the day the notice reached the consumer, the receiving mortgage credit institution may only collect half of the fees that are collected in connection with a bond transaction for the purpose of redeeming the terminated mortgage loan or mortgage-like loan.

Special Rules for Investment Management Companies

§ 54. When investment management companies perform portfolio management for UCITS, including brokering securities for these, the relevant UCITS are covered by the same protection as customers under § 72.

Subsection 2. Investment management companies that have permission to perform discretionary portfolio management for customers must agree in advance with the customer whether the investment management company may place the customer's portfolio funds or part thereof in shares in UCITS that the investment management company administers.

§§ 55-60e. (Repealed)

Section IV
Ownership and Management etc.
Chapter 7
Ownership

§ 61. Any natural or legal person or natural and legal persons acting in concert who intend to directly or indirectly acquire a qualifying holding, cf. § 5, subsection 3, in a financial company or a financial holding company, must apply in advance to the Danish Financial Supervisory Authority for approval of the intended acquisition. The same applies to an increase in the qualifying holding that results in it, after the acquisition, amounting to or exceeding a threshold of respectively 20 pct., 33 pct., or 50 pct. of the share capital or voting rights, or results in the financial company or the financial holding company becoming a subsidiary.

Subsection 2. The Danish Financial Supervisory Authority confirms in writing and no later than after ten working days the receipt of the application, cf. subsection 1. The same applies to the receipt of material, cf. subsection 4.

Subsection 3. The Danish Financial Supervisory Authority has from the time of the written confirmation of receipt of the application, cf. subsection 2, and receipt of all documents required to be attached to the application, an assessment period of 60 working days to carry out the assessment mentioned in § 61a. Simultaneously with the confirmation of receipt of the application, cf. subsection 2, the Danish Financial Supervisory Authority notifies the intended acquirer of the date when the assessment period expires.

Subsection 4. The Danish Financial Supervisory Authority may, until the 50th working day in the assessment period, request additional information necessary for the assessment. The request must be made in writing. The first time such a request is made, the assessment period is interrupted for the period between the time of the request and the receipt of the answer thereto. The interruption may, however, not exceed 20 working days, cf. however subsection 5.

Subsection 5. The Danish Financial Supervisory Authority may extend the interruption of the assessment period as mentioned in subsection 4 by up to ten working days, if:

the intended acquirer is domiciled in or subject to the legislation of a country outside the European Union, with which the Union has not concluded an agreement in the financial area, or
the intended acquirer is a natural or legal person who has not been granted permission to carry out the business mentioned in §§ 7-10, the business mentioned in § 14, subsection 1, in the Act on Insurance Business, or the business mentioned in § 3, No. 2, in the Act on Capital Markets in Denmark, another country within the European Union, or in a country with which the Union has concluded an agreement in the financial area.

Subsection 6. If the Danish Financial Supervisory Authority rejects an application for approval of an intended acquisition, this must be justified in writing and communicated to the intended acquirer immediately after the decision. The communication must be made within the assessment period. The intended acquirer may request the Danish Financial Supervisory Authority to publish the justification for the rejection.

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Section 7. If the Danish Financial Supervisory Authority does not refuse the application for the intended acquisition in writing during the assessment period, the acquisition is deemed approved.

Section 8. The Danish Financial Supervisory Authority may set a deadline for the implementation of an acquisition or increase approved under subsection 1. The Danish Financial Supervisory Authority may extend such a deadline.

Section 9. The Danish Financial Supervisory Authority sets rules on when an acquisition shall be included in the calculation under subsection 1.

Section 10. The assessment period, cf. subsection 3, is suspended until the conclusion of the case processing under Section 175 g, if the assessment under Section 61 a is carried out simultaneously with the approval under Section 175 g.

Section 61 a. The Danish Financial Supervisory Authority must, in connection with its assessment of an application received under Section 61, subsection 1, ensure consideration for the sensible and prudent management of the undertaking in which the acquisition is intended. The assessment must further take into account the intended acquirer's likely influence on the undertaking, the intended acquirer's suitability, and the intended acquisition's financial soundness in relation to the following criteria:

The intended acquirer's reputation.
The reputation and experience of the person or persons who, after the acquisition, will manage the financial undertaking or the financial holding company.
The intended acquirer's financial situation, especially in relation to the nature of the business carried out or intended to be carried out in the financial undertaking or financial holding company in which the acquisition is intended.
Whether the undertaking can continue to comply with the supervisory requirements in legislation, in particular whether the group, which the undertaking may come to form, has a structure that makes it possible to carry out effective supervision and effective exchange of information between the competent authorities and to determine how responsibility should be distributed between the competent authorities.
Whether there is justified suspicion, in connection with the intended acquisition, that money laundering or terrorist financing, cf. Sections 3 and 4 of the Act on Preventive Measures against Money Laundering and Terrorist Financing, will take place.

Subsection 2. The Danish Financial Supervisory Authority may refuse an application for approval of an intended acquisition if, based on the criteria mentioned in subsection 1, there is reasonable ground to assume that the intended acquirer will hinder the sensible and prudent management of the undertaking, cf. subsection 1, or if the information provided by the intended acquirer, in the Danish Financial Supervisory Authority's assessment, is not sufficient.

Subsection 3. In the Danish Financial Supervisory Authority's assessment under subsection 1, consideration for the economic needs of the market must not be included.

Subsection 4. The Danish Financial Supervisory Authority may object to the intended acquisition if the intended acquirer is located in a third country listed as a high-risk country with strategic deficiencies in its measures against money laundering and terrorist financing, or in a third country covered by the Union's rules on financial sanctions, and the Danish Financial Supervisory Authority assesses that this affects the intended acquirer's ability to introduce the necessary practices and processes to meet the requirements for combating money laundering and terrorist financing.

Section 61 b. Any natural or legal person or natural and legal persons acting in concert who intend directly or indirectly to dispose of a qualified holding, cf. Section 5, subsection 3, or to reduce a qualified holding in a financial undertaking or a financial holding company such that the disposal causes the threshold of respectively 20 pct., 33 pct. or 50 pct. of the share capital or voting rights no longer to be reached, or causes the undertaking or holding company to cease being the subsidiary of the person concerned, must beforehand notify the Danish Financial Supervisory Authority thereof in writing, stating the size of the intended future shareholding.

Section 61 c. When a financial undertaking or a financial holding company becomes aware of acquisitions or disposals of holdings as mentioned in Section 61, subsection 1, and Section 61 b, the undertaking or holding company must immediately inform the Danish Financial Supervisory Authority thereof.

Subsection 2. Financial undertakings and financial holding companies must, no later than in February, inform the Danish Financial Supervisory Authority of the names of the shareholders who, at the end of the previous year, owned a qualified holding in the financial undertaking or the financial holding company, and of the size of these holdings.

Section 62. If shareholders, who possess one of the holdings referred to in Section 61, subsection 1, in a financial undertaking or a financial holding company, do not meet the requirements in Section 61 a, subsection 1, the Danish Financial Supervisory Authority may revoke the voting rights attached to the relevant owners' shareholdings, or order the undertaking to follow certain guidelines.

Subsection 2. The Danish Financial Supervisory Authority may revoke the voting rights attached to shareholdings owned by natural or legal persons who do not comply with the obligation in Section 61, subsection 1, to apply for approval in advance. The shareholdings are assigned full voting rights again if the Danish Financial Supervisory Authority can approve the acquisition.

Subsection 3. If a natural or legal person has acquired shareholdings as referred to in Section 61, subsection 1, despite the Danish Financial Supervisory Authority having refused to approve this acquisition of shareholdings, the Danish Financial Supervisory Authority must revoke the voting rights attached to these shareholdings.

Subsection 4. The Danish Financial Supervisory Authority must inform the relevant financial undertaking, financial holding company, or insurance holding company when the Danish Financial Supervisory Authority has revoked the voting rights attached to shareholdings in the undertaking pursuant to subsections 1-3. The Danish Financial Supervisory Authority must also inform the undertaking if shareholdings are again assigned full voting rights pursuant to subsection 2, second sentence.

Subsection 5. If the Danish Financial Supervisory Authority has revoked the voting rights pursuant to subsections 1-3, the shareholding cannot be included in the calculation of the voting capital represented at a general meeting.

Section 63. The Danish Financial Supervisory Authority must be notified in advance of financial undertakings' and financial holding companies' direct or indirect acquisition of a qualified holding in a foreign financial undertaking, as well as such increases in the qualified holding that result in this amounting to or exceeding a threshold of respectively 20 pct., 33 pct. and 50 pct. of the voting rights or respectively the share capital, or that the foreign financial undertaking becomes a subsidiary. The notification must contain information about in which country the undertaking is established.

Subsection 2. Financial undertakings and financial holding companies, which have a holding of at least 10 pct. of a foreign financial undertaking, and which intend to reduce this holding so that it falls below one of the thresholds set in subsection 1, must notify the Danish Financial Supervisory Authority thereof and state the size of the intended future holding.

Subsection 3. Where the foreign financial undertaking becomes a subsidiary, the notification to the Danish Financial Supervisory Authority must contain the following information about the subsidiary:

In which country the subsidiary is to be established,
a description of the subsidiary's business, including information on organization and planned activities,
the subsidiary's address, and
the names of the subsidiary's management.

Subsection 4. In the event of a change in a matter for which notification has been given pursuant to subsection 3, items 1-4, the financial undertaking or the financial holding company must notify the Danish Financial Supervisory Authority thereof before the change is made. If the financial undertaking or the financial holding company is not aware of the change in advance, notification to the Danish Financial Supervisory Authority must be given immediately after the financial undertaking or the financial holding company has received notification of the change.

Chapter 8
Management and Organization of the Undertaking

Section 64. A member of the board of directors or the management of a financial undertaking

must have sufficient knowledge, professional competence, and experience to be able to perform the office or position,
must have a sufficiently good reputation and be able to demonstrate honesty, integrity, and sufficient independence in performing the office or position,
must not be subject to criminal liability for violation of the Penal Code, financial legislation, or other relevant legislation, if the violation entails a risk that the person cannot perform their office or position in a secure manner,
must not have submitted a petition for or be under restructuring proceedings, bankruptcy, or debt settlement, and
must not have exhibited such behavior that there is reason to assume that the member will not perform the office or position in a prudent manner.

Subsection 2. When a person assumes an office as a board member or a position as a director in a financial undertaking, the Danish Financial Supervisory Authority ensures that the person meets the suitability and honesty requirements in subsection 1. The Danish Financial Supervisory Authority makes a decision on whether the person can hold the office or position in the relevant undertaking.

Subsection 3. If the Danish Financial Supervisory Authority assesses that the person does not meet the requirements in subsection 1, items 2-5, the duration of the decision must be stated in the decision.

Subsection 4. The Danish Financial Supervisory Authority may, in special cases where the Danish Financial Supervisory Authority assesses that a person does not have sufficient professional prerequisites or experience in relation to the position as a member of the management, which the person is assessed for, make a decision that the person may hold the position under specifically determined conditions.

Subsection 5. Members of the board of directors or management of a financial undertaking must inform the Danish Financial Supervisory Authority of information regarding matters mentioned in subsection 1 in connection with their entry into the financial undertaking's management and of matters mentioned in subsection 1, items 1-5, if the circumstances subsequently change. If a member of the board of directors is appointed or elected to the position of chairman of the board of directors in a credit institution, a mortgage credit institution, or an insurance company, the board member must also inform the Danish Financial Supervisory Authority of information regarding matters covered by subsection 1, item 1. The undertaking's assessment of a chairman of the board of directors' personal competencies covered by subsection 1, item 1, must be in written form.

Subsection 6. The financial undertaking must ensure that members of the board of directors or management meet the requirements in subsection 1 and Sections 64 a and 313 for SIFIs at all times. The undertaking must assess whether a potential member meets these requirements before this person assumes the office or position, and regularly thereafter when the member has assumed the office. If the undertaking becomes aware of circumstances that may affect the assessment of the member's suitability and honesty, the undertaking must re-assess the member and notify the Danish Financial Supervisory Authority thereof as soon as possible. The undertaking must ensure that information about the members' suitability and honesty is kept up to date and provided to the Danish Financial Supervisory Authority upon request.

Subsection 7. If the financial undertaking assesses that a member or potential member of the management or board of directors does not meet the requirements in subsection 1, Section 64 a, or Section 313 for SIFIs, the undertaking must, if necessary,

ensure that the relevant potential member does not assume the intended office or position, if the assessment is completed before the potential member assumes the office,
promptly dismiss such a member, or
promptly take further measures necessary to ensure that such a member is or becomes suitable for the relevant office or position.

Subsection 8. A systemically important financial institution (SIFI) and a globally systemically important financial institution (G-SIFI) that wish to appoint a member to the management or appoint a chairman of the board of directors must ensure that the Danish Financial Supervisory Authority receives a suitability and honesty application for the person as soon as possible, and no later than 30 working days before the person assumes the office or position.

Subsection 9. The suitability and honesty application mentioned in subsection 8 must be submitted via Virk.dk and include

a suitability and honesty information form,
a curriculum vitae,
the undertaking's internal suitability and honesty assessment, cf. subsection 6, second sentence,
other documents specified by the Danish Financial Supervisory Authority as soon as these are available, and
a statement of the appointment date and the date on which the tasks are actually commenced.

Subsection 10. The Danish Financial Supervisory Authority may require that a member covered by subsection 8 does not assume the office or position until the Danish Financial Supervisory Authority has received sufficient information to assess the member's suitability and honesty, unless the Danish Financial Supervisory Authority finds it proven that it is not possible to present such information.

Subsection 11. Subsections 1-10 apply mutatis mutandis to members of the board of directors and management of a financial holding company or a mixed holding company.

Subsection 12. For a board member in group 3 and group 4 credit institutions, who is not the chairman of the board of directors, subsection 2 and subsection 5, first sentence, apply only to the requirements in subsection 1, items 2-5.

Subsection 13. The Minister for Business Affairs may set detailed rules on competence and experience requirements pursuant to subsection 1 for members of the management of credit institutions, mortgage credit institutions, systemically important financial institutions (SIFI), and globally systemically important financial institutions (G-SIFI).

Section 64 a. A member of the board of directors or management of a financial undertaking must allocate sufficient time to perform their office as director or board member in the relevant undertaking. The management member must continuously assess whether the person has allocated sufficient time to perform their office. The assessment must include the undertaking's size, organization, and complexity.

Section 64 b. A member of the board of directors of a credit institution or a mortgage credit institution must, as soon as possible and no later than 12 months after joining the board of directors, complete a basic course in the competencies necessary to perform the obligations and functions required of board members in the type of undertaking in which the person has joined.

Subsection 2. The Danish Financial Supervisory Authority may exempt a member of the board of directors from the requirement in subsection 1 if the member's knowledge, professional competence, or experience may be considered sufficient.

Subsection 3. The Danish Financial Supervisory Authority may exempt a member of the board of directors from the requirement in subsection 1 if the member's Danish language skills are not sufficient to complete a basic course pursuant to subsection 1 and an approved course is not offered in English. The exemption is conditional on the member completing other training as soon as possible and no later than 12 months after joining the board of directors, the content framework of which is approved by the Danish Financial Supervisory Authority, including an introduction to the Danish corporate legal structure and relevant areas that are specific to Danish financial undertakings.

Subsection 4. The Danish Financial Supervisory Authority may, in special cases, allow a member of the board of directors to complete a basic course, cf. subsections 1 and 3, later than 12 months after the member's entry into the board of directors.

Subsection 5. The Danish Financial Supervisory Authority sets detailed rules on the content of a basic course as mentioned in subsection 1.

Section 64 c. A credit institution and a mortgage credit institution must, as part of its corporate governance, cf. Section 71, subsection 1, identify the institution's key persons.

Subsection 2. Key persons are employees who are part of the actual management on a daily basis, and employees who are responsible for a key function, including

the person responsible for the risk management function,
the person responsible for the compliance function,
the person responsible for the credit area,
the person responsible for internal audit,
the person responsible for anti-money laundering, cf. Section 7, subsection 2 of the Anti-Money Laundering Act,
members of the actual management who are responsible for the compliance function or anti-money laundering, but who are not the person responsible for the compliance function, cf. item 2, or the person responsible for anti-money laundering, cf. item 5, and
the chief financial officer, unless this person is a member of the management.

Subsection 3. A credit institution and a mortgage credit institution must without undue delay notify the Danish Financial Supervisory Authority of which employees have been identified as key persons pursuant to subsection 1, including which positions the relevant persons hold and which areas or functions the relevant persons are responsible for. A credit institution and a mortgage credit institution must also without undue delay notify the Danish Financial Supervisory Authority if there are significant changes in the areas or functions for which the relevant key person is responsible, or when an employee is no longer considered to be a key person.

Subsection 4. Section 64, subsections 1 and 5-7, apply mutatis mutandis to employees in a credit institution and a mortgage credit institution who have been identified as key persons pursuant to subsection 1, and to employees who have been identified as key persons in a systemically important financial institution (SIFI) and a globally systemically important financial institution (G-SIFI), which are not a credit institution or a mortgage credit institution.

Subsection 5. For group 1 and 2 credit institutions, mortgage credit institutions, systemically important financial institutions (SIFI), and globally systemically important financial institutions (G-SIFI), which are not credit or mortgage institutions, Section 64, subsections 2-4, apply mutatis mutandis to employees who have been identified as key persons pursuant to subsection 1.

Subsection 6. For group 3 credit institutions, Section 64, subsections 2-4, apply mutatis mutandis to employees who have been identified as key persons pursuant to subsection 1, cf. subsection 2, items 1-5.

Subsection 7. For group 4 credit institutions, Section 64, subsections 2-4, apply mutatis mutandis to the employee who has been identified as a key person pursuant to subsection 1, cf. subsection 2, item 5.

Subsection 8. Subsection 1, subsection 2, items 1-4, and subsection 3 apply mutatis mutandis to a systemically important financial institution (SIFI) and a globally systemically important financial institution (G-SIFI), which are not a credit institution or a mortgage credit institution.

Subsection 9. Section 64, subsections 1-5, apply mutatis mutandis to employees in an investment management company that determines the investment management company's business conduct, cf. Section 14, subsection 1, item 8.

Subsection 10. The Minister for Business Affairs may set detailed rules on competence and experience requirements for key persons

credit institutions, mortgage credit institutions, systemically important financial institutions (SIFI) and globally systemically important financial institutions (G-SIFI).

Subsection 11. A credit institution and a mortgage credit institution, a systemically important financial institution (SIFI) and a globally systemically important financial institution (G-SIFI), which is not a credit institution or a mortgage credit institution, are obliged to ensure that key persons comply with Section 64, subsection 1.

Section 64 d. (Repealed)

Section 64 e. The board of directors of the financial undertaking shall ensure that its members have sufficient collective knowledge, professional competence and experience to be able to understand the undertaking's activities and the risks associated with them and the effects the activities cause in the short, medium and long term, taking into account ESG factors. The composition of the board of directors shall reflect a sufficiently broad experience.

Subsection 2. In group 1 and 2 credit institutions and larger mortgage credit institutions, at least 1 member of the board of directors shall have management experience from another relevant financial undertaking.

Subsection 3. In mortgage credit institutions, at least 1 member of the board of directors shall have experience or deeper insight into the bond market.

Section 65. The board of directors shall, by means of a code of conduct, make further provisions on the execution of its duties.

Subsection 2. The Danish Financial Supervisory Authority may lay down rules on the content of the code of conduct.

Section 66. The power of representation which, pursuant to Section 135, subsection 2, of the Companies Act, belongs to members of the board of directors or the executive board, may only be exercised by at least two acting jointly.

Section 67. Notice of a general meeting in a financial undertaking respectively a representative body meeting in a savings bank shall be publicly available and in accordance with the provisions of the articles of association. The press shall have access to the general meetings respectively the representative body meetings in the savings banks.

Subsection 2. Subsection 1 does not apply to undertakings which are 100 pct. owned by a financial undertaking or financial undertakings in the same group.

Subsection 3. The deadline for notice of a general meeting or a representative body meeting with a view to making a capital increase may be shortened to 10 days, if the Danish Financial Supervisory Authority has assessed that the credit institution or mortgage credit institution is covered by the rules in Chapter 15 a of this Act and the credit institution or mortgage credit institution assesses that the capital increase is necessary to prevent the credit institution or mortgage credit institution from becoming non-performing. The shortening in accordance with the first sentence may be made if the general meeting or the representative body in a savings bank with two thirds of the votes cast amends the articles of association to include this possibility.

Subsection 4. Sections 84 and 90 of the Companies Act and time limits in Sections 94, 98 and 99 of the Companies Act do not apply to general meetings and representative body meetings called in accordance with subsection 3.

Section 68. The Danish Financial Supervisory Authority exercises for financial undertakings the powers granted to the Danish Business Authority pursuant to Section 93, subsections 2 and 3, of the Companies Act.

Section 69. For the performance of certain tasks specified in the articles of association, including the election of the board of directors, a representative body may be established. The members of the representative body are subject to the same liability as the board of directors with regard to the performance of their duties. This provision does not apply to savings banks.

Section 70. The board of directors of a financial undertaking and a financial holding company shall, with a view to ensuring that the undertaking is run prudently,

determine which main types of business activities the undertaking shall carry out,
identify and quantify the undertaking's significant risks and determine the undertaking's risk profile, including determining which and how large risks the undertaking may take on,
determine policies for how the undertaking shall manage each of the undertaking's significant activities and the risks associated with them, taking into account the interaction between these and
determine a policy for diversity in the board of directors, which promotes sufficient diversity in qualifications and competences among the members of the board of directors, cf. however subsection 6.

Subsection 2. On the basis of the established risk profile and the established policies, the board of directors of the undertaking shall give the executive board written guidelines, which shall as a minimum contain

controllable frameworks for which and how large risks the executive board may impose on the undertaking,
the principles for the calculation of the individual risk types,
rules on which dispositions require the board of directors' approval and which dispositions the executive board may carry out as part of its position, and
rules on how and to what extent the executive board shall report to the board of directors on the undertaking's risks, including on the use of the frameworks in the guidelines for the executive board and on compliance with the limits set in the legislation regarding the risks that the undertaking may take on.

Subsection 3. The board of directors of the undertaking shall continuously take a position on whether the undertaking's risk profile and policies and the guidelines for the executive board are sound in relation to the undertaking's business activities, organization and resources, including capital and liquidity, as well as the market conditions under which the undertaking's activities are carried out.

Subsection 4. The board of directors of the undertaking shall continuously evaluate whether the executive board performs its tasks in accordance with the established risk profile, the established policies and the guidelines for the executive board, including whether the executive board has deviated from these, and whether the deviation, if any, has been sound. The board of directors shall take appropriate measures if this is not the case.

Subsection 5. If the board of directors decides specifically to deviate from or accept a deviation from the established risk profile, the established policies or the guidelines for the executive board, this shall be entered into the board of directors' minutes together with a statement of the reasons for the decision.

Subsection 6. In undertakings which have appointed a nomination committee pursuant to Section 80 a, the duty in subsection 1, no. 4, lies with the nomination committee.

Subsection 7. The Danish Financial Supervisory Authority may lay down further rules on the obligations incumbent on the board of directors of a financial undertaking and a financial holding company pursuant to subsections 1-4.

Section 70 a. A credit institution shall have a written policy which ensures and promotes a sound corporate culture.

Subsection 2. The board of directors shall determine the policy.

Subsection 3. The chairman of the board of directors shall in his report to the highest organ of the credit institution account for the implementation and compliance with the policy.

Subsection 4. The CEO shall ensure that the policy is implemented and complied with.

Subsection 5. The Minister for Business Affairs lays down further rules on the content and compliance with the policy.

Section 71. A financial undertaking and a financial holding company shall have effective forms of corporate governance, including

a clear organizational structure with a well-defined, transparent and consistent distribution of responsibilities,
good administrative and accounting practice,
written business processes for all the significant activity areas,
effective procedures to identify, manage, monitor and report on the risks that the undertaking is or may be exposed to, including ESG risks in the short, medium and long term,
the resources necessary for the proper implementation of its business, and appropriate use of these,
procedures with a view to separation of functions in connection with handling and prevention of conflicts of interest,
comprehensive internal control procedures,
sound control and security measures in the IT area and for network and information systems, which are established and managed in accordance with Regulation (EU) 2022/2554 of the European Parliament and of the Council of 14 December 2022 on digital operational resilience in the financial sector, and
personnel and financial resources necessary to ensure sufficient opportunities for introductory and further training courses for members of the board of directors and the executive board, including on ESG risks and effects and IT risks as defined in Article 4, subsection 1, no. 52c), of Regulation (EU) no. 575/2013 of the European Parliament and of the Council.

Subsection 2. Credit institutions and mortgage credit institutions shall have effective procedures for the approval of new products and services, significant changes to existing products and services and the distribution of these.

Subsection 3. A credit institution and a mortgage credit institution shall prepare, maintain and update individual declarations describing the roles and tasks for all members of the executive board, the actual management and for persons responsible for key functions. The institution shall also prepare, maintain and update an overview of the institution's management structure and work tasks for the organizational areas of responsibility which are part of the institution's business model, with further information on reporting lines, distribution of responsibilities and tasks for the persons covered. The institution shall at all times make the individual declarations and the overview available to the persons covered.

Subsection 4. For crypto assets, the institutions shall carry out prior assessments of the exposures they intend to take on, and of the adequacy of existing processes and procedures for managing market risks and counterparty risks, and report these to the Danish Financial Supervisory Authority.

Subsection 5. The Danish Financial Supervisory Authority may lay down further rules on the measures which a financial undertaking and a financial holding company shall take to have effective forms of corporate governance, cf. subsections 1 and 2.

Section 71 a. A credit institution and a mortgage credit institution, cf. however Section 71 b, shall prepare and maintain a recovery plan. The recovery plan shall be approved by the undertaking's board of directors and shall contain

appropriate criteria and procedures which ensure the timely implementation of the measures which the undertaking assesses should be taken to restore the financial situation in the undertaking, if there is a rapid or significant deterioration of this,
a wide range of recovery options and
a number of scenarios with severe macroeconomic and financial stress which are relevant to the undertaking, and appropriate responses to these.

Subsection 2. The recovery plan prepared pursuant to subsection 1 shall be submitted to the Danish Financial Supervisory Authority. The Danish Financial Supervisory Authority has 6 months from receipt of the recovery plan to carry out an assessment of the recovery plan. The Danish Financial Supervisory Authority may, when relevant, submit the recovery plan to any competent authorities in other countries within the European Union and in countries with which the Union has concluded an agreement in the financial field, where significant branches are located.

Subsection 3. The Danish Financial Supervisory Authority shall submit the recovery plan to Financial Stability, which may make recommendations to the Danish Financial Supervisory Authority on the content of the recovery plan.

Subsection 4. The Danish Financial Supervisory Authority lays down further rules on the requirements for the content of the recovery plans, including rules on critical functions, scenarios with severe macroeconomic and financial stress as well as on maintenance and deadlines for submission of recovery plans.

Section 71 b. In groups where the ultimate parent undertaking is located in Denmark, and where the parent undertaking is a credit institution, a mortgage credit institution or a financial holding company, the parent undertaking shall prepare and maintain a group recovery plan. The first sentence only applies to financial holding companies which have at least one subsidiary which is a credit institution or a mortgage credit institution. It shall appear from the group recovery plan which measures the parent undertaking assesses should be taken to restore the financial situation in the parent undertaking and in each individual subsidiary, if there is a rapid or significant deterioration of the financial situation in one or more of the undertakings in the group. Section 71 a, subsections 1 and 2, apply with the necessary adaptations correspondingly to the ultimate parent undertaking and for the group recovery plan.

Subsection 2. The Danish Financial Supervisory Authority may, regardless of subsection 1, order that a recovery plan shall be prepared for each individual subsidiary which is a credit institution or a mortgage credit institution in accordance with Section 71 a.

Subsection 3. The Danish Financial Supervisory Authority forwards group recovery plans prepared in accordance with subsection 1 to

the competent authorities which are part of the supervisory college,
the competent authorities in countries within the European Union or in countries with which the Union has concluded an agreement in the financial field, where significant branches are located, if the plan is assessed to be relevant for the branch in question,
Financial Stability or the authority in countries within the European Union or in countries with which the Union has concluded an agreement in the financial field, which is responsible for the resolution of the group, and
Financial Stability or an authority in the country within the European Union or in countries with which the Union has concluded an agreement in the financial field, which is responsible for the resolution of a subsidiary.

Subsection 4. With a view to making a joint decision, the Danish Financial Supervisory Authority, in cooperation with the authorities mentioned in subsection 3, nos. 1 and 2, assesses the group recovery plan, including whether the plan meets the requirements set out in subsection 1, cf. Section 71 a, subsections 1 and 2. The authorities mentioned in subsection 3, nos. 3 and 4, may make recommendations to the Danish Financial Supervisory Authority on the content of the group recovery plan.

Subsection 5. If no joint decision is made within 4 months after the Danish Financial Supervisory Authority's forwarding of the group recovery plan, cf. subsection 4, or on reactions pursuant to Section 71 c, subsection 2, the Danish Financial Supervisory Authority makes its own decision on this. The Danish Financial Supervisory Authority notifies the group's parent undertaking, Financial Stability and the authorities mentioned in subsection 3 of this decision. If one of the authorities mentioned in subsection 3 has brought the matter before the European Banking Authority, the Danish Financial Supervisory Authority shall make a decision in accordance with the decision from the European Banking Authority.

Subsection 6. The Danish Financial Supervisory Authority lays down further rules on the requirements for the content of the group recovery plans, including rules on critical functions, scenarios with severe macroeconomic and financial stress as well as on maintenance and deadlines for submission of group recovery plans.

Section 71 c. The Danish Financial Supervisory Authority notifies the undertaking or the group's parent undertaking, if the Danish Financial Supervisory Authority assesses that the recovery plan, cf. Section 71 a, or the group recovery plan, cf. Section 71 b, has significant deficiencies, or if there are significant obstacles to its implementation. The undertaking shall submit a revised plan to the Danish Financial Supervisory Authority no later than 2 months after the notification. The Danish Financial Supervisory Authority may extend the deadline by up to 1 month.

Subsection 2. The Danish Financial Supervisory Authority may, if the undertaking does not submit a revised plan within the set deadline, or if the revised plan does not sufficiently remedy the deficiencies and obstacles pointed out in accordance with subsection 1, order the undertaking to

reduce the undertaking's risk profile, including liquidity risk,
enable timely recapitalization measures,
revise the undertaking's strategy and structure,
make changes to the financing strategy to improve the resilience of the central business areas and critical functions and
make changes to the undertaking's management structure.

Section 72. Boards of directors in credit institutions and mortgage credit institutions shall, as part of their corporate governance, prepare and monitor the implementation of specific ESG transition plans, which include quantifiable targets and processes with a view to monitoring and addressing the financial risks that arise in the short, medium and long term as a result of ESG factors, including those that arise as a result of the transition to a more sustainable economy in accordance with the relevant regulatory objectives and acts issued by the European Union. The ESG transition plan, cf. the first sentence, shall be designed taking into account the institution's business model, size and complexity and the nature of the institution's exposure to ESG risks.

Subsection 2. Credit institutions and mortgage credit institutions shall test their resilience to long-term negative effects of ESG factors in both baseline and stress scenarios within a specific time horizon.

Subsection 3. The Danish Financial Supervisory Authority may order credit institutions or mortgage credit institutions to reduce the risks that arise in the short, medium and long term as a result of ESG factors. The reduction may be made through orders to adjust the institution's business strategy, general management and risk management.

Subsection 4. The Danish Financial Supervisory Authority may lay down further rules on the obligations incumbent on credit institutions and mortgage credit institutions pursuant to subsections 1-3.

Section 71 a. Credit institutions, savings companies, mortgage credit institutions and investment management companies may outsource a process, a service or an activity which the undertaking would otherwise carry out itself to a supplier. The first sentence does not apply to outsourcing in the digital operational area.

Subsection 2. The Danish Financial Supervisory Authority may decide that the outsourcing company's outsourcing shall be terminated within a deadline set by the Danish Financial Supervisory Authority, if the outsourcing contract or its parties do not comply with the rules laid down pursuant to subsection 3.

Subsection 3. The Minister for Business Affairs lays down further rules on outsourcing regarding

management arrangements, liability, risk management, monitoring, control and reporting of outsourcing companies in connection with outsourcing to a supplier, including the supplier's further outsourcing,
internal guidelines of outsourcing companies regarding outsourcing,
handling of conflicts of interest by outsourcing companies in connection with outsourcing,
requirements that outsourcing companies must at a minimum ensure that suppliers or sub-suppliers always comply with, including also access, information and audit rights with suppliers and sub-suppliers,
requirements regarding the content of the contract,
outsourcing at group and sub-group level, and
the obligation of outsourcing companies to notify the Financial Supervisory Authority regarding outsourcing.
§ 72 b. (Repealed)
§ 72 c. (Repealed)
§ 73. The office of board member in a financial undertaking or as a member of the representative body in other financial undertakings than savings banks cannot be combined with the position of director in the undertaking in question. However, the board of a director may temporarily appoint one of its members or a member of the representative body as director in the event of the director's absence. The person appointed in such case may not exercise voting rights in the aforementioned bodies. The second sentence does not apply to the chairman of the board or the representative body. Subsection 2. The office of internal audit chief and deputy internal audit chief cannot be combined with the office of board member. § 74. The chairman of the board must ensure that the board holds meetings when this is necessary and must ensure that all members are summoned. Any member of the board, a director, an external auditor and the internal audit chief in a financial undertaking may demand that the board be summoned. A director, an external auditor, the internal audit chief and the responsible actuary have the right to participate in and speak at board meetings, unless the board decides otherwise in the individual case. External auditors and the internal audit chief always have the right to participate in board meetings when dealing with matters that have significance for the audit or for the preparation of the annual report. Subsection 2. External auditors and the internal audit chief are obliged to participate in the board's handling of the relevant matters, if requested by at least one board member. Subsection 3. Minutes shall be kept of the board's deliberations, which shall be signed by all members present. A board member, a director, an external auditor or the internal audit chief who disagrees with the board's decision has the right to have their opinion entered in the minutes. § 75. The financial undertaking must immediately notify the Financial Supervisory Authority of information regarding circumstances that are of decisive importance for the continued operation of the financial undertaking. The financial undertaking must as soon as possible notify the Financial Supervisory Authority of information that is of significant importance for the Financial Supervisory Authority's supervision. Subsection 2. The same applies to individual members of the board and a director in a financial undertaking. Subsection 3. If a member of a financial undertaking's board or management or the external auditor must assume that the financial undertaking does not meet the capital requirements according to § 126 a, subsections 2-6, the own funds requirement according to Article 92, subsection 1, the minimum capital requirement in Article 93 of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions, or the solvency requirement according to § 124, subsection 2, the person concerned must immediately notify
this to the Financial Supervisory Authority. Subsection 4. Subsections 1-3 apply mutatis mutandis to financial undertakings and financial holding companies regarding circumstances in subsidiaries that are financial undertakings. § 75 a. A financial undertaking and a crowdfunding service provider must have an arrangement whereby its employees can report breaches or potential breaches of financial regulation committed by the undertaking, including by employees or members of the board of the undertaking, via a special, independent and autonomous channel. Reports to the arrangement can be made anonymously. The undertaking must follow up on reports to the arrangement and be able to document in writing how the undertaking has followed up on the reports. The Act on Protection of Whistleblowers applies to the arrangement in the first sentence, cf. however § 2 in the Act on Protection of Whistleblowers. Subsection 2. The arrangement in subsection 1 can be established via collective agreement. Subsection 3. For an investment management company, subsection 1 applies only when the company employs more than five employees. The arrangement mentioned in subsections 1 and 2 must be established no later than 3 months after the company has hired the sixth employee. Subsection 4. The Financial Supervisory Authority may in special cases, where the Financial Supervisory Authority assesses that it would be pointless to establish an arrangement, exempt from the requirement in subsection 1. § 75 b. A financial undertaking and a crowdfunding service provider must not subject employees or former employees to unfavorable treatment or unfavorable consequences as a result of the employee or former employee having reported the undertaking's breach or potential breach of financial regulation to the Financial Supervisory Authority or to an arrangement in the undertaking. The same applies to the determination, allocation and payment of variable pay to employees or former employees. Subsection 2. Employees or former employees whose rights have been infringed by a breach of subsection 1 may be awarded compensation in accordance with the principles in the Act on Equal Treatment of Men and Women with regard to Employment etc. The compensation is determined with regard to the employee's or former employee's period of employment and the circumstances of the case otherwise. Subsection 3. Subsections 1 and 2 cannot be derogated from by agreement to the detriment of the employee or former employee. 16 April 2026. 29 No. 432.

§ 75 c. If an employee or former employee and a financial undertaking or a crowdfunding service provider enter into an agreement containing a confidentiality clause, it must appear from the agreement that the employee or former employee is not barred from reporting information about breaches or potential breaches of financial regulation to public authorities.
Subsection 2. Notwithstanding subsection 1, the employee or former employee is not barred from reporting information about breaches or potential breaches of financial regulation to public authorities, even if such a prohibition is included in an agreement between the employee or former employee and the financial undertaking or crowdfunding service provider. The same applies to reports to arrangements according to § 75 a. § 76. (Repealed) § 77. Persons who, according to law or articles of association, are employed by the board of a financial undertaking and employees for whom there is a significant risk of conflicts between their own interests and the financial undertaking's interests, must not for their own account or through companies they control,

take out loans or draw on already approved credits to purchase financial instruments, when the purchased financial instruments are pledged as security for the loan or credit,
acquire, issue or trade with derivative financial instruments, unless the purpose is risk hedging,
acquire capital shares, apart from shares in Danish UCITS, capital funds and foreign investment institutions covered by § 143, subsection 1, no. 2 and 3, in the Act on Investment Funds etc., with a view to selling these earlier than 6 months after acquisition, or
acquire positions in foreign currency, apart from the euro, when the position taking is done with a view to other than payment for purchase of financial instruments, goods or services or purchase or operation of real estate or for use in travel.
Subsection 2. The person group mentioned in subsection 1 must not acquire capital shares in companies that carry out business as mentioned in subsection 1, no. 1-4. This does not apply, however, to the purchase of shares in credit institutions, insurance companies, mortgage credit institutions or fund brokerage companies as well as shares in Danish UCITS, capital funds and foreign investment institutions covered by § 143, subsection 1, no. 2 and 3, in the Act on Investment Funds etc. Subsection 3. The board must take a position on which employees there is a significant risk of conflicts between their own interests and the financial undertaking's interests, and who are therefore subject to the prohibition. The board must ensure that the relevant persons are aware of this. The criminal provision in § 373, subsection 2, applies from the time when the person concerned has received information about this. Subsection 4. The board must prepare guidelines for persons covered by subsection 1 for control of compliance with the prohibition in subsection 1 and subsection 2, first sentence, including regarding reporting of asset dispositions. Subsection 5. The external audit must once a year review the financial undertaking's guidelines according to subsection 4 and in the audit protocol regarding the annual report state whether the guidelines are assessed to be reassuring and have functioned appropriately, and whether the undertaking's control procedures have given rise to remarks. If no audit protocol is kept, the information mentioned in the first sentence must appear in other corresponding documentation. Subsection 6. An account-keeping institution is obliged, upon request from the board of the financial undertaking, to give the financial undertaking's external audit access to information about accounts and deposits and to issue extracts therefrom for persons covered by subsection 1. Subsection 7. The prohibition in subsection 1, no. 2, does not cover financial instruments that are derived from shares in the financial undertaking or a company that is group-related with it, and which the person concerned receives as part of their remuneration. Subsection 8. The prohibition in subsection 1, no. 1, does not cover loans to purchase employee shares as well as the instruments mentioned in subsection 7. Subsection 9. The prohibition in subsection 1, no. 3, does not cover shares that are acquired by exercising the instruments mentioned in subsection 7. Subsection 10. Internal audit and deputy internal audit chiefs must regardless of subsections 1-9 not have economic interests in the undertaking or group in which they are employed. § 77 a. In the remuneration of the board, management and other employees, whose activities have significant influence on the undertaking's risk profile, by credit institutions, mortgage credit institutions, investment management companies and financial holding companies, the undertaking must ensure that the following are fulfilled:
The variable pay components to a member of the board or management may at the time of calculation of the variable pay amount to at most 50 pct. of either the fee or the fixed basic salary including pension, cf. however § 77 b, subsection 1.
The variable pay components to other employees, whose activities have significant influence on the undertaking's risk profile, may at the time of calculation of the variable pay amount to at most 100 pct. of the fixed basic salary, including pension.
The undertaking's highest body may, however, decide that the variable pay components to other employees, whose activities have significant influence on the undertaking's risk profile, cf. no. 2, may amount to up to 200 pct. of the fixed basic salary, including pension, provided that the following requirements are fulfilled:
a) The undertaking must no later than at the summons to the highest body's meeting inform the highest body about the wish to have the use of a higher maximum ceiling decided upon. b) The highest body must take the decision on the use of a higher maximum ceiling based on a detailed recommendation from the undertaking, which justifies the proposal, including the number of affected employees, their areas of work, the new proposed maximum ceiling and the expected impact on the undertaking's ability to maintain a sound own funds base. The shareholders must receive the recommendation no later than simultaneously with the summons to the highest body's meeting. c) The undertaking must no later than simultaneously with the communication of the recommendation to the shareholders, cf. letter b, inform the Financial Supervisory Authority about the recommendation to the shareholders, including the proposed higher maximum ceiling and the justification for the proposal. The undertaking must, upon request from the Financial Supervisory Authority, prove that the proposed higher maximum ceiling is not in conflict with the undertaking's obligations under the law, regulations pursuant to § 71, subsection 5, and § 77 h, subsection 3, and Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions, including in particular the own funds requirements. d) The decision on the use of a higher maximum ceiling must be approved by the undertaking's highest body with at least 66 pct. of the votes cast, provided that at least 50 pct. of the voting capital shares are represented at the meeting. If less than 50 pct. of the voting capital shares are represented at the meeting, the decision must be approved by at least 75 pct. of the votes cast. An employee, who is a shareholder in the undertaking, must not participate in the vote on this at the highest body's meeting, if the employee has a significant interest in the decision that may be conflicting with the undertaking's interest. e) The undertaking must no later than 8 days after the highest body's meeting inform the Financial Supervisory Authority about the highest body's decision, including about the size of any decided higher maximum ceiling.
At least 50 pct. of a variable pay component to the board, management and other employees, whose activities have significant influence on the undertaking's risk profile, must at the time of calculation of the variable pay consist of a balance of shares, or depending on the undertaking's legal structure corresponding ownership shares, share-based instruments or corresponding instruments that reflect the undertaking's creditworthiness. Credit institutions and mortgage credit institutions, which have permission to execute orders and discretionary portfolio management, cf. Annex 1, Section A, no. 2 and 4, in the Act on Fund Brokerage Companies and Investment Services and Activities, must, where it is possible and appropriate, use instruments as regulated in Article 52 and 63 in Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions or other instruments that can be converted into genuine core capital instruments or written down, and which in an appropriate degree reflect the undertaking's creditworthiness as an undertaking, whose activity is assumed to continue. The instruments can be issued in the undertaking or its parent company, which owns the undertaking fully. With reservation for the investment management company's legal structure and its fund rules and articles of association, a significant part and at least 50 pct. of a variable pay component to a member of the board and management and other employees, whose activities have significant influence on the investment management company's risk profile or on the risk profile of the managed Danish UCITS, must consist of shares, capital shares or instruments linked to capital shares in the investment management company or the managed Danish UCITS. The minimum requirement of 50 pct. in the fourth sentence does not apply if the management of Danish UCITS constitutes less than 50 pct. of the total portfolio, which is managed by the investment management company.
The undertaking's payment of at least 40 pct. of a variable pay component, with larger amounts at least 60 pct., takes place over a period of at least 4 years with commencement 1 year after the calculation time point, however for the board and management at least 5 years, with an equal distribution over the years or with an increasing share at the end of the period. The determination of the deferred variable pay component must be adapted to the undertaking's nature, the risks associated with it and the employee's work tasks. The length of the deferral period must be determined in accordance with the undertaking's business cycle, the undertaking's nature, the risks associated with it and the employee's work tasks.
The undertaking may refrain from paying a variable pay component entirely or partially, if the undertaking at the time of payment of the variable pay component does not comply with the capital requirement or solvency requirement in § 124, subsections 1-4, § 126 a, subsections 1-3, 5 and 7, and § 170 as well as Article 11, subsections 1 and 2, Article 92, subsection 1, and Articles 93, 97 and 500 in Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions, or if the Financial Supervisory Authority assesses that there is a nearby risk thereof.
The undertaking does not pay variable pay to the board and management, if the undertaking in the period, which the agreement on the variable pay concerns, and until the time point for its calculation receives a deadline from the Financial Supervisory Authority according to § 225, subsection 1 or 4, regarding compliance with the solvency requirement.
Subsection 2. For the board and management in credit institutions, mortgage credit institutions, investment management companies and financial holding companies, share options or similar instruments may amount to at most 12.5 pct. of respectively the fee and the fixed basic salary including pension at the time of their calculation.
Subsection 3. The credit institution, mortgage credit institution, investment management company or financial holding company must ensure that shares and instruments etc., which are transferred to the board, management or other employees, whose activities have significant influence on the undertaking's risk profile, as part of the variable pay, which is mentioned in subsection 1, no. 4, must not be disposed of by these persons in a suitable period, and that these persons must not carry out a hedging of the risk, which is linked to these shares and instruments etc. Subsection 4. The credit institution, mortgage credit institution, investment management company or financial holding company must ensure that payment of the deferred variable pay component to the board, management and other employees, whose activities have significant influence on the 16 April 2026. 30 No. 432.

16 April 2026. 31 No. 432.

the company's risk profile, is conditional on the criteria that formed the basis for the calculation of the variable pay component still being met at the time of payment, conditional on the individual having complied with appropriate requirements of fitness and propriety and not having participated in or been responsible for conduct that resulted in significant losses for the company, and conditional on the company's financial situation not having deteriorated significantly compared to the time of the calculation of the variable pay component.

Subsection 5. The credit institution, mortgage credit institution, investment management company or financial holding company shall ensure that the board of directors, the executive management and other employees, whose activities have a significant impact on the company's risk profile, and who receive variable pay, shall repay the variable pay in whole or in part, if the variable pay was paid out on the basis of information about results that can be documented to be incorrect, and if the recipient is in bad faith.

Subsection 6. The credit institution, mortgage credit institution, investment management company or financial holding company shall ensure that if the board of directors, the executive management and other employees, whose activities have a significant impact on the company's risk profile, are awarded a pension benefit that can be equated in whole or in part with variable pay components, cf. Section 77 a, subsection 1, no. 38, the company shall, if the recipient leaves the company before the pension date, retain this part of the pension benefit for 5 years in the form of instruments as mentioned in subsection 1, no. 4. Subsections 4 and 5 shall apply correspondingly to the cases mentioned in the first sentence. If the recipient is a member of the board of directors or employed by the company at the age of retirement, the company shall pay out the variable part of the pension benefit to the recipient in the form of the instruments mentioned in subsection 1, no. 4, without the possibility of disposal or utilization for a period of 5 years. Subsection 5 shall apply correspondingly to the cases mentioned in the third sentence.

Subsection 7. For persons in employment relationships covered by a collective agreement, subsections 1-6 shall only apply to agreements on variable pay components if the agreements on variable pay are not stipulated in the collective agreement.

Section 77 b. For credit institutions, mortgage credit institutions, investment management companies and financial holding companies that receive state aid or have received an undertaking of state aid, including state capital injection, or subsidiaries of Finansiel Stabilitet, the percentage mentioned in Section 77 a, subsection 1, no. 1, shall be 20 pct., provided that variable pay may only be awarded and paid out to the board of directors and the executive management if this is justified.

Subsection 2. No new share option programs or similar schemes may be initiated for the board of directors and the executive management in the companies mentioned in subsection 1.

Subsection 3. The companies mentioned in subsection 1 shall in their remuneration policy set a specified limit, in relation to the company's earnings, for the total allocation of variable pay to the board of directors, the executive management and other employees, whose activities have a significant impact on the company's risk profile.

Section 77 c. Credit institutions, mortgage credit institutions, investment management companies and financial holding companies, whose capital shares are admitted to trading on a regulated market, or which in the last two financial years at the balance sheet date on average have had 1,000 or more full-time employees, shall establish a remuneration committee, cf. however subsection 2.

Subsection 2. In groups with several companies, which pursuant to subsection 1 or Section 21, subsection 1, of the Act on Managers of Alternative Investment Funds etc. have the obligation to establish a remuneration committee, a joint remuneration committee may however be established for these companies in the group or a part thereof. The remuneration committee shall be organizationally placed in a company under the supervision of the Danish Financial Supervisory Authority, except in a financial holding company, and shall be established in a company that is the parent company of the other companies for which the committee is established.

Subsection 3. The chairman and the members of the remuneration committee shall be members of the board of directors in the company that establishes the remuneration committee, or of the boards of directors in companies that, pursuant to subsection 2, have a joint remuneration committee. The remuneration committee shall be composed such that the members have the necessary knowledge and the necessary qualifications and competencies to understand and monitor the company's remuneration policy and practice, risk management and control activities, particularly insofar as it concerns the adjustment of the company's remuneration structure to the company's risk profile and the management of capital and liquidity, and are able to make a qualified and independent assessment of whether the company's remuneration, including remuneration policy and related business practices, is in compliance with Sections 77 a and 77 b and Section 77 d, subsection 1, and rules issued pursuant to Section 77 h.

Subsection 4. The remuneration committee shall conduct the preparatory work for the board of directors' decisions regarding remuneration, including remuneration policy and other decisions thereon, which may have an impact on the company's risk management, and in this connection conduct the following:

The remuneration committee shall advise the board of directors on the formulation of the company's remuneration policy, assist the board of directors in ensuring compliance with the company's remuneration policy in practice and assess whether the company's remuneration policy is updated, including if necessary come up with proposals for updates of the remuneration policy.
The remuneration committee shall ensure that the information presented to the general meeting regarding the company's remuneration policy and practice and the information pursuant to Section 77 a, subsection 1, no. 3, letter a and b, are sufficient.
The remuneration committee shall assess whether the company's processes and systems are sufficient and take into account the company's risks, including risks associated with the management of capital and liquidity, in relation to the company's remuneration structure, and ensure that the company's remuneration policy and practice are in compliance with and promote sound and effective risk management and are in compliance with the company's business strategy, objectives, values and long-term interests.
The remuneration committee shall assess the company's and the business units' total results and ensure that the executive management has evaluated whether the result criteria that formed the basis for the calculation of variable pay to the company's members of the board of directors and executive management and other employees, whose activities have a significant impact on the company's risk profile, continue to be met at the time of payment, cf. Section 77 a, subsection 4.
The remuneration committee shall control selected evaluations conducted by the executive management, cf. no. 4, to test whether the conditions in Section 77 a, subsection 4, are met.
The remuneration committee shall ensure that the independent control functions and other relevant functions are involved, to the extent necessary for the implementation of the tasks in no. 1-5, and to the extent necessary, seek external advice.

Subsection 5. The remuneration committee may perform other tasks regarding remuneration. The committee shall in the preparatory work safeguard the company's long-term interests, including in relation to investors, and the public interest.

Subsection 6. In companies covered by subsection 1, and where there is employee representation in the board of directors pursuant to the rules in chapter 8 of the Companies Act, at least one of these representatives shall be a member of the remuneration committee established pursuant to subsection 1 or 2.

Section 77 d. A credit institution, a mortgage credit institution, an investment management company and a financial holding company shall have a written remuneration policy that is in compliance with and promotes sound and effective risk management, including by taking into account the company's risk appetite with regard to ESG risks. The company's remuneration policy shall be gender-neutral.

Subsection 2. The company's highest body shall approve the company's remuneration policy, cf. subsection 1, including guidelines for the allocation of variable pay and guidelines for severance payments, upon any significant change and at least every fourth year. The company's remuneration policy shall be published on the company's website as soon as possible after approval. The remuneration policy shall remain publicly accessible on the website as long as it is in force.

Subsection 3. In a credit institution, a mortgage credit institution, an investment management company or a financial holding company, the chairman of the board of directors shall in his report to the company's highest body account for the remuneration of the company's board of directors and executive management. The report shall contain information about the remuneration in the previous financial year and about the expected remuneration in the current and the coming financial year. The chairman of the board of directors shall explain and justify the content of the remuneration policy and its compliance in his report to the company's highest body.

Subsection 4. The company's highest body shall approve the remuneration of the company's board of directors for the current financial year.

Subsection 5. The board of directors of a credit institution, a mortgage credit institution, an investment management company and a financial holding company shall annually prepare and publish a remuneration report.

Subsection 6. The remuneration report shall contain:

Information about the total remuneration that each member of the board of directors and executive management as part of this office has earned from the company and other companies within the same group in the last 3 years, including information about the most important content of retention and severance schemes.
An account of the link between the management's remuneration and the company's strategy and relevant objectives therefor.

Subsection 7. The remuneration report shall be published on the company's website as soon as possible after the holding of the general meeting. The remuneration report shall remain publicly accessible on the website for a period of 10 years. The remuneration report may be available for a longer period than 10 years, provided that it no longer contains personal data.

Section 77 e. (Repealed)

Section 77 f. Credit and mortgage credit institutions shall ensure that the remuneration of the institution's employees is not in conflict with the institution's obligations pursuant to Section 43, subsection 1, and rules issued pursuant to Section 43, subsection 2.

Subsection 2. The remuneration policy of credit and mortgage credit institutions, cf. Section 77 d, subsection 1, shall contain measures to avoid conflicts of interest, including ensuring that the remuneration of the employees is not dependent on the number or proportion of approved applications for mortgage credit or other forms of sales targets.

Subsection 3. For persons in employment relationships covered by a collective agreement, subsections 1 and 2 shall only apply to agreements on remuneration if the agreements on remuneration are not stipulated in the collective agreement.

Section 77 g. The variable pay components to a member of the board of directors or executive management in a credit institution, a mortgage credit institution or a financing institution as defined in Article 4, subsection 1, no. 26, of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions, which are not located in Denmark, may not exceed 100 pct. of respectively the fee and the fixed basic salary including pension.

Subsection 2. A credit institution and a mortgage credit institution shall ensure that the employees, whose activities have a significant impact on the group's risk profile, are designated in accordance with the Commission's delegated regulation on criteria for the definition of managerial responsibilities and control functions, significant business unit and significant impact on the company's risk profile, as well as other categories of employees, whose activities have a significant impact on the company's subsidiaries within the same group.

Section 77 h. The Minister of Business Affairs may for credit institutions, mortgage credit institutions, investment management companies and financial holding companies set detailed rules on the definition of other employees, whose activities have a significant impact on the company's risk profile.

Subsection 2. The Minister of Business Affairs may for credit institutions, mortgage credit institutions, investment management companies and financial holding companies set detailed rules on the obligation to publish information about the remuneration of the board of directors, the executive management and other employees, whose activities have a significant impact on the company's risk profile.

Subsection 3. The Minister of Business Affairs may for credit institutions, mortgage credit institutions, investment management companies and financial holding companies set detailed rules on the matters mentioned in Section 77 a, subsections 1-6, and Section 77 d, subsection 1.

Subsection 4. The Minister of Business Affairs may for credit institutions and mortgage credit institutions and financial holding companies set detailed rules on compliance with rules on remuneration at group level.

Section 77 i. (Repealed)

Section 77 j. If a credit institution, a mortgage credit institution, an investment management company, an insurance company, a financial holding company or an insurance holding company enters into an agreement on a severance scheme with a member of the executive management, and the value of the scheme exceeds an amount corresponding to the individual's total remuneration in the last 2 financial years including pension, the company shall publish the size of the total remuneration, including the size of the individual remuneration components, and a justification for the size of the remuneration components.

Subsection 2. The publication pursuant to subsection 1 shall take place on the company's website in the same place where the company's remuneration policy is published, and shall take place as soon as possible and no later than 3 business days after the agreement is entered into. The information about a member of the executive management's severance scheme shall be available as long as the agreement is in force.

Section 77 k. Salary in an agreed notice period to a member of the executive management in a credit institution, a mortgage credit institution, an investment management company, an insurance company, a financial holding company or an insurance holding company, which is not matched by a usual work obligation, shall be paid out monthly during the notice period.

Section 77 l. A severance payment to a member of the executive management in a credit institution, a mortgage credit institution, an investment management company, an insurance company, a financial holding company or an insurance holding company shall reflect the results achieved in performing the position, and must not reward misconduct or lack of results.

Subsection 2. The severance payment shall be paid out in monthly installments corresponding to the size of the recipient's average monthly salary including pension in the last financial year.

Subsection 3. The payment of the severance payment may earliest begin after any salary in the notice period is fully paid out.

Subsection 4. The board of directors shall recommend the payment of the severance payment if the board of directors assesses that the director during his employment has exhibited conduct that must be considered to constitute serious managerial negligence. The board of directors shall withhold the payment of the severance payment if the company is charged with criminal offenses that can be attributed to the director, or if the board of directors becomes aware that the director is charged with criminal offenses committed in connection with his employment in the company.

Subsection 5. The board of directors shall demand repayment of a severance payment that has been paid out in whole or in part, before the board of directors became aware of conduct or circumstances covered by subsection 4.

Section 77 m. Sections 77 j-77 l cannot be derogated from by agreement, including by agreement on a severance scheme for a member of the executive management in a credit institution, a mortgage credit institution, an investment management company, an insurance company, a financial holding company or an insurance holding company, which is entered into with another company in the group, which is not covered by the rules.

Section 78. A financial company must not without the board of directors' approval and entry thereof in the board of directors' minutes

grant exposure to or receive security from board members and directors in the financial company or companies where board members and directors in the financial company are directly or indirectly holders of a qualifying holding or are board members or directors, or
enter into an agreement with a director, when the agreement involves larger dispositions in relation to the director's economic situation, or with a third party, in which the director has a significant interest that may be conflicting with the financial company.

Subsection 2. Members of the board of directors shall compensate for losses that the financial company suffers as a result of grants, securities or agreements covered by subsection 1, which are approved by the board of directors, unless the board of directors proves that the loss could not have been prevented through the care and diligence that the management of the financial company is required to exercise.

Subsection 3. A director who without the board of directors' approval grants exposures, receives securities or enters into agreements covered by subsection 1, is liable for the loss that the financial company thereby may be caused, unless the director is liable pursuant to the Companies Act Section 215, subsection 2, cf. Section 210.

Subsection 4. If a grant or security covered by subsection 1, no. 1, is entered into without the board of directors' approval with a board member in the financial company or a company in which the board member directly or indirectly holds a qualifying holding or is a board member or director, the board member is liable for the loss that the financial company thereby may be caused, unless the board member is liable pursuant to the Companies Act Section 215, subsection 2, cf. Section 210.

Subsection 5. Exposures and agreements pursuant to subsection 1 shall be granted or entered into in accordance with the financial company's usual business terms and on market-based terms, unless the exposure is entered into with an employee-elected board member on employment terms. If no audit minutes are kept, the declaration mentioned in the second sentence shall appear in other corresponding documentation.

Subsection 6. The executive management and the board of directors shall especially monitor the prudence and progress of exposures and agreements pursuant to subsection 1.

Subsection 7. The rules in subsections 1-6 also apply to exposures to and agreements with persons who are linked to directors by

marriage, cohabitation for at least 2 years, or kinship in the direct ascending or descending line or as siblings, and with companies where such persons are directors or hold a qualified share of 10 percent or more of the capital or voting rights, or where these persons can exercise significant influence or are members of the board.

Subsection 8. A financial undertaking or undertakings within the same group must not grant exposure to or accept security from an external auditor or the internal audit or deputy audit chief. This does not apply to loans granted by a life insurance company within the repurchase value of a life insurance policy issued by the life insurance company.

Section 79. The rules on group representation in the Companies Act do not apply to employees in companies through which a financial undertaking temporarily carries out other business in accordance with this Act.

Section 79a. In financial undertakings and financial holding companies that have financial instruments admitted to trading on a regulated market in an EU/EEA country, or that have a balance sheet total of DKK 500 million or more in 2 consecutive financial years, the board shall:

set targets for the proportion of members elected by the general meeting or a corresponding meeting, which is the undertaking's highest authority, of the underrepresented sex in the board, unless there is an equal distribution of women and men among these members in the board,
set targets for the proportion of the underrepresented sex in the undertaking's other management levels, unless there is an equal distribution of women and men in the other management levels, and
draw up a policy to increase the proportion of the underrepresented sex in the undertaking's other management levels, unless there is an equal distribution of women and men in the other management levels, cf. however subsection 5.

Subsection 2. For parent companies that prepare group accounts, the calculation in subsection 1 shall be based on the group accounts.

Subsection 3. Other management levels are understood as two management levels below the board. The first management level below the board includes the executive board and the persons who are organizationally at the same management level as the executive board. The second management level includes persons with personnel responsibility who report directly to the first management level below the board.

Subsection 4. The board shall set a new and higher target for the proportion of the underrepresented sex according to subsection 1, nos. 1 and 2, when the undertaking has reached its previously set target, or a new target when the time horizon for the expected fulfillment has expired.

Subsection 5. Undertakings that in the most recent financial year have employed fewer than 50 employees may refrain from drawing up a policy to increase the proportion of the underrepresented sex in their other management levels.

Subsection 6. If an undertaking is covered by both this provision and the provisions on gender composition in the highest management body in the Companies Act, the Act on Commercial Foundations, or the Act on Certain Commercial Undertakings, this provision takes precedence.

Subsection 7. In undertakings that have appointed a nomination committee in accordance with Section 80a, the duty in subsection 1, nos. 1 and 2, lies with the nomination committee.

Subsection 8. Subsections 1-7 do not apply to undertakings covered by the Gender Balance Act.

General rules on other offices of management

Section 80. Persons who, according to law or articles of association, are employed by the board in a financial undertaking may not, without the board's permission, own or operate independent commercial business or, as a board member, employee, or in any other way participate in the management or operation of other commercial business than the financial undertaking, cf. however Section 199, subsection 10 and 11.

Subsection 2. Other employees in a financial undertaking, for whom there is a significant risk of conflict between their own interests and the financial undertaking's interests, may not, without the executive board's permission, own or operate independent commercial business or, as a board member, employee, or in any other way participate in the management or operation of other commercial business than the financial undertaking. The board shall be informed about permissions granted by the executive board.

Subsection 3. The board shall decide which employees have a significant risk of conflict between their own interests and the financial undertaking's interests and who therefore need the executive board's permission, cf. subsection 2. The board shall ensure that the relevant persons are aware of this. The criminal provision in Section 373, subsection 2, applies from the time when the relevant person has received information about this.

Subsection 4. The company mentioned in subsections 1 and 2 can only be contested if the financial undertaking or undertakings that are part of the group or administrative community with the financial undertaking do not have or assume exposures to the commercial undertakings mentioned in subsections 1 and 2 or undertakings that are part of a group with these undertakings. Excluded from this are exposures in the form of capital shares, exposures to the undertakings mentioned in subsections 5 and 6, and exposures to commercial undertakings that are part of a group with the financial undertaking or commercial undertakings where financial undertakings jointly or together with foundations and associations established in accordance with Sections 207 and 214 own more than 4/5 of the capital shares.

Subsection 5. The exposure prohibition mentioned in subsection 4 does not apply in connection with participation in the boards of Danmarks Skibskredit A/S, Banker og Sparekassers Ungdomskontakt, LR Realkredit A/S, Bornholms Erhvervsfond, Grønlandsbanken A/S, regulated markets, clearing houses, securities depositories, NASDAQ OMX Stockholm AB, NASDAQ OMX Helsinki Oy, IFU – Investment Fund for Developing Countries, IØ – Investment Fund for Eastern Countries, Bankernes Kontantservice A/S, Fundcollect A/S, Fundconnect A/S, and DLR Kredit A/S.

Subsection 6. The exposure prohibition mentioned in subsection 4 does not apply in connection with participation in the board of a company that is temporarily operated by a credit institution or mortgage credit institution in accordance with Section 25 to secure or liquidate previously assumed exposures.

Subsection 7. All permissions granted by the board in accordance with subsection 1 shall appear in the board's minutes.

Subsection 8. The financial undertaking shall at least once a year publish information about the offices that the board has approved in accordance with subsection 1. Furthermore, the external auditor shall in the audit report regarding the annual report give a statement on whether the financial undertaking has exposure to commercial undertakings covered by subsections 1 and 2. If no audit report is kept, the statement mentioned in the second sentence shall appear in other corresponding documentation.

Subsection 9. The Danish Financial Supervisory Authority may grant dispensation from subsection 4 in special cases.

Nomination and risk committees

Section 80a. A credit institution and a mortgage credit institution that have capital shares admitted to trading on a regulated market, or that in the 2 most recent financial years at the balance sheet date on average have had 1,000 or more full-time employees, shall appoint a nomination committee.

Subsection 2. The chairman and members of the nomination committee shall be members of the board of the relevant credit institution or mortgage credit institution.

Subsection 3. The nomination committee shall manage the following:

Propose candidates for election to the board.
Set targets for the proportion of the underrepresented sex in the board and draw up a policy for how the target is to be achieved.
Establish a policy for diversity in the board that promotes sufficient diversity in qualifications and competencies among the board members.
Continuously and at least once a year evaluate the board's size, structure, composition, and results in relation to the tasks to be performed, and report and make recommendations for any changes to the full board.
Continuously and at least once a year evaluate whether the full board has the necessary combination of knowledge, professional competence, diversity, and experience, and whether each individual member meets the requirements in Section 64, and report and make recommendations for any changes to the full board.
Continuously review the board's policy for the selection and appointment of members of the executive board, if such a policy has been drawn up, and make recommendations to the board regarding this.

Subsection 4. When the nomination committee proposes candidates elected to the board in accordance with subsection 3, no. 1, the nomination committee shall draw up a description of the functions and qualifications required for the specific post, and indicate the time expected to be allocated to this.

Subsection 5. The nomination committee shall continuously ensure that the board's decision-making is not dominated by a single person or a small group of persons in a way that harms the undertaking's interests as a whole.

Subsection 6. The nomination committee shall have the opportunity to utilize all the resources that the committee deems necessary, including external advice, and the relevant credit institution or mortgage credit institution shall ensure that the nomination committee has sufficient financial resources for this.

Section 80b. A credit institution and a mortgage credit institution that have capital shares admitted to trading on a regulated market, or that in the 2 most recent financial years at the balance sheet date on average have had 1,000 or more full-time employees, shall appoint a risk committee.

Subsection 2. The chairman and members of the risk committee shall be members of the board of the relevant credit institution or mortgage credit institution and shall have the necessary knowledge and the necessary qualifications and competencies to understand and monitor the undertaking's risks.

Subsection 3. The risk committee shall manage the following:

Advise the board on the undertaking's overall current and future risk profile and strategy.
Assist the board in ensuring that the board's risk strategy is implemented correctly in the organization.
Evaluate whether the financial products and services that the credit institution or mortgage credit institution deals with are in accordance with the undertaking's business model and risk profile, including whether the earnings on the products and services reflect the risks associated with them, and draw up proposals for remediation if the products or services and the earnings associated with them are not in accordance with the undertaking's business model and risk profile.
Evaluate whether the incentives in the undertaking's remuneration structure take into account the undertaking's risks, including those arising as a result of the effects of ESG factors, capital and liquidity, and the probability and timing of profits.

Subsection 4. The risk committee shall have access to information about the undertaking's risks, including at the risk management function, and, to the extent necessary and relevant, the possibility of using external advice.

Subsection 5. The risk committee shall continuously evaluate and decide on the type, quantity, and frequency of information from the undertaking that shall be available to the committee.

Publication

Section 80c. A financial undertaking that has a website shall publish information on how the undertaking complies with the requirements in Section 70, subsection 1, no. 4, and subsection 4, Section 71, subsection 1, no. 9, Section 77a, subsections 1-6, Section 77b, subsections 1 and 3, Section 77c, and Section 80a, subsection 1, and subsection 3, no. 3, to the extent that the relevant requirements apply to the undertaking.

Subsection 2. A credit institution and a mortgage credit institution that have a website shall publish information on how the undertaking establishes, implements, and monitors the undertaking's management arrangements, which ensure effective and prudent management of the undertaking, including separation of tasks in the organization and prevention of conflicts of interest.

Subsection 3. Publication in accordance with subsections 1 and 2 shall take place on the undertaking's website in a place where it naturally belongs.

Special rules for savings banks

Section 81. The representative body is the savings bank's highest authority.

Subsection 2. The representative body shall have at least 21 members. The representatives are elected for a period of 4 years. If the representative body becomes smaller than 21 members due to departure, supplementary elections shall take place.

Subsection 3. Those entitled to vote in the election of representatives are the savings bank's depositors and guarantors with voting rights. Each depositor can only cast 100 votes. A guarantor has from 0 to and including 100 votes for every DKK 1,000 deposited guarantee capital, but at most 2,000 votes. Rules on the electoral system, on voting rights, and on the conduct of elections shall appear in the articles of association.

Subsection 4. The depositors and guarantors who cast votes in the election of the representative body elect such a large part of this as corresponds to the ratio between the number of votes cast and the total number of votes that belong to the savings bank's depositors and guarantors, but at least 1/3 of the representatives. The other members are elected solely by the eligible guarantors and in savings banks without eligible guarantors by the outgoing representative body. It should be sought to ensure that the representative body is composed diversely both geographically and in terms of business.

Subsection 5. If every depositor in the savings bank has the right to enter as a guarantor and the number of votes that can be cast by guarantors is at least 100,000, it may be stipulated in the savings bank's articles of association, regardless of the provisions in subsections 3 and 4, that the representative body is elected solely by the guarantors. A guarantor has from 0 to and including 100 votes for every DKK 1,000 deposited guarantee capital, but at most 2,000 votes. If the representative body is elected solely by the savings bank's guarantors, at least one guarantor's guarantee capital must be voting.

Section 81a. If the part of the equity that is not guarantee capital in a savings bank is less than 20 percent of the savings bank's equity, the savings bank's statutory voting rights restrictions set out in Section 81, subsection 3, sentence 3, and Section 81, subsection 5, sentence 2, cease to apply. The savings bank's statutory voting rights restrictions in Section 81, subsection 3, sentence 3, and Section 81, subsection 5, sentence 2, do not re-enter, even if the part of the equity that is not guarantee capital again comes to constitute 20 percent or more of the equity.

Subsection 2. For savings banks covered by subsection 1, a change to the articles of association shall be carried out at the latest at the next representative body meeting, after the savings bank has become covered by subsection 1, so that it clearly appears in the savings bank's articles of association that the savings bank is not covered by the statutory voting rights restrictions. A savings bank may regardless of subsection 1 stipulate voting rights restrictions in the savings bank's articles of association.

Subsection 3. The assessment of whether the part of the equity that is not guarantee capital constitutes less than 20 percent of the savings bank's equity shall be based on the most recently audited annual report, the most recently audited interim report, or the most recently audited quarterly accounts.

Section 81b. The savings bank shall obtain information about the savings bank's beneficial owners, including information about the beneficial owners' rights.

Subsection 2. Any person who directly or indirectly owns or controls the savings bank shall, upon the savings bank's request, provide the savings bank with the information about the ownership structure that is necessary for the savings bank's identification of beneficial owners, including information about the beneficial owners' rights.

Subsection 3. The savings bank shall register the information, including information about the beneficial owners' rights, in the Danish Business Authority's IT system as soon as possible after the savings bank has become aware that a person has become a beneficial owner. Any change to the information registered about the beneficial owners shall be registered as soon as possible after the savings bank has become aware of the change. The registered members of the savings bank's executive board shall be regarded and registered as beneficial owners in the Danish Business Authority's IT system if the savings bank, after having exhausted all possibilities for identification, has no beneficial owners or no beneficial owners can be identified.

Subsection 4. The savings bank shall at least once a year investigate whether there are changes to the registered information about beneficial owners. The result of the annual investigation shall be presented at the board meeting where the board approves the annual report.

Subsection 5. The savings bank shall keep documentation for the information obtained about the savings bank's beneficial owners for 5 years after the beneficial ownership ends. The savings bank shall furthermore keep documentation for the information obtained about attempts to identify beneficial owners for 5 years after the implementation of the identification attempt.

Subsection 6. The savings bank shall, upon request, provide information about the savings bank's beneficial owners, including about the savings bank's attempts to identify the savings bank's beneficial owners, to the Danish Financial Crime Authority. The savings bank shall furthermore, upon request, provide the mentioned information to other competent authorities when these authorities assess that the information is necessary for their performance of supervisory or control tasks.

Subsection 7. The Danish Financial Crime Authority and other competent authorities may freely pass on information about beneficial owners that are registered, cf. subsection 3, or obtained, cf. subsection 6, to other EU member states' competent authorities and financial intelligence units.

Subsection 8. The Danish Business Authority sets detailed rules on the registration, availability, and publication of information in accordance with subsections 1, 3, and 5 in the Danish Business Authority's IT system, including which information the savings bank shall register in the authority's IT system.

Section 81c. Savings banks that shall obtain, keep, and register information about beneficial owners, cf. Section 81b, shall, upon request, provide persons and companies that, in accordance with the Money Laundering Act, shall perform customer due diligence procedures, with information about the savings bank's ownership structure.

16 April 2026. 37 No. 432.

Section 2. If the Danish Financial Supervisory Authority receives reports under the Money Laundering Act regarding discrepancies in relation to the registered information on a savings bank's beneficial owners, the Danish Financial Supervisory Authority shall investigate the matter. The Danish Financial Supervisory Authority may set a deadline for the savings bank to rectify the matter.

Section 3. Upon request from the Danish Financial Supervisory Authority, the Danish Business Authority may, concurrently with the investigation referred to in Section 2, publish a notice regarding the report in the Danish Business Authority's IT system. The savings bank must be given the opportunity to object to the report before it is published, unless the purpose of publishing the notice regarding the report is thereby defeated.

Section 82. Board members are elected by the representative assembly for a maximum of 4 years at a time.

Section 83. A savings bank's articles of association must contain provisions on:

the name of the savings bank and any additional names,
the size, interest rate, and voting distribution of the guarantee capital,
guarantors and the obligations incumbent on them,
the representative assembly, board, and management,
summons to meetings of the representative assembly and elections to the representative assembly, cf. Section 81, subsection 3,
time and place of the ordinary meeting of the representative assembly,
which matters are to be processed at the ordinary meeting of the representative assembly,
preparation of accounts and use of profit,
amendment of the articles of association, and
voluntary termination of the business.

Section 83a. If a savings bank's articles of association contain a cap on or limitation of dividend payments and interest on the guarantee capital, this shall not prevent the capital from being counted towards the savings bank's actual core capital.

Section 83b. Holders of guarantee capital may not have claims on redemption.

Section 84. Sections 87 and 88, Section 89, subsections 1 and 3, Section 90, subsections 1 and 2, Sections 91 and 93, Section 94, subsection 1, Section 96, subsection 1, Sections 98, 100a, 101, 102, 105, 108 and 109, Section 111, subsection 1, item 1, and subsections 2 and 4, Sections 112-115, Section 117, subsection 1, Sections 118, 119, 121, 124, 127, 131 and 134, Section 135, subsections 1, 2 and 5, Sections 136-138 and 140-143, and Section 160, subsection 1, first and second sentences, of the Companies Act shall apply correspondingly to savings banks, with the necessary adjustments and with the deviations that appear from the provisions of this Act.

Subsection 2. Cancellation of guarantee certificates without court order may take place according to the rules in Section 66, subsection 3, of the Companies Act with the same notice as in the case of cancellation of share certificates that are not negotiable instruments.

Special rules for cooperative banks

Section 85. The general meeting is the highest authority of the cooperative bank and consists of the members of the cooperative bank.

Subsection 2. Every member has the right to attend the general meeting and speak there. Each member has one vote. Members of cooperative banks covered by Section 85a are allocated votes in accordance with the member's share of the cooperative bank's total member capital, unless otherwise provided in the cooperative bank's articles of association.

Section 85a. If the part of the equity capital that is not member capital in a cooperative bank is less than 20 percent of the cooperative bank's equity capital, the statutory voting restrictions set out in Section 85, subsection 2, second sentence, shall cease to apply to the cooperative bank. The statutory voting restrictions in Section 85, subsection 2, second sentence, shall not re-enter into force, even if the part of the equity capital that is not member capital again comes to constitute 20 percent or more of the equity capital.

Subsection 2. For cooperative banks covered by subsection 1, an amendment to the articles of association must be implemented at the latest at the next general meeting after the cooperative bank has become covered by subsection 1, so that it clearly appears from the cooperative bank's articles of association that the cooperative bank is not covered by the statutory voting restrictions. A cooperative bank may, regardless of subsection 1, set voting restrictions in the cooperative bank's articles of association.

Subsection 3. The assessment of whether the part of the equity capital that is not member capital constitutes less than 20 percent of the cooperative bank's equity capital shall be based on the most recently audited annual report, the most recently audited interim report, or the most recently audited quarterly accounts.

Section 85b. The cooperative bank must obtain information about the cooperative bank's beneficial owners, including information about the beneficial owners' rights.

Subsection 2. Any person who directly or indirectly owns or controls the cooperative bank must, upon the cooperative bank's request, provide the cooperative bank with the information about the ownership structure that is necessary for the cooperative bank's identification of beneficial owners, including information about the beneficial owners' rights.

Subsection 3. The cooperative bank must register the information, including information about the beneficial owners' rights, in the Danish Business Authority's IT system as soon as possible after the cooperative bank has become aware that a person has become a beneficial owner. Any change to the information registered about the beneficial owners must be registered as soon as possible after the cooperative bank has become aware of the change. The registered members of the cooperative bank's management shall be regarded and registered as beneficial owners in the Danish Business Authority's IT system if the cooperative bank, after having exhausted all possibilities for identification, has no beneficial owners or cannot identify any beneficial owners.

Subsection 4. The cooperative bank must investigate at least once a year whether there are changes to the registered information about beneficial owners. The result of the annual investigation shall be presented at the board meeting where the board approves the annual report.

Subsection 5. The cooperative bank must keep documentation for the information obtained about the cooperative bank's beneficial owners for 5 years after the beneficial ownership ends. The cooperative bank must also keep documentation for the information obtained about attempts to identify beneficial owners for 5 years after the implementation of the identification attempt.

Subsection 6. The cooperative bank must, upon request, provide information about the cooperative bank's beneficial owners, including information about the cooperative bank's attempts to identify the cooperative bank's beneficial owners, to the Money Laundering Secretariat. The cooperative bank must also, upon request, provide the aforementioned information to other competent authorities when these authorities assess that the information is necessary for their performance of supervisory or control tasks.

Subsection 7. The Money Laundering Secretariat and other competent authorities may, free of charge, pass on information about beneficial owners that is registered, cf. subsection 3, or obtained, cf. subsection 6, to competent authorities and financial intelligence units in other EU member states.

Subsection 8. The Danish Business Authority sets detailed rules on the registration, availability, and publication of information in subsections 1, 3, and 5 in the Danish Business Authority's IT system, including which information the cooperative bank must register in the authority's IT system.

Section 85c. Cooperative banks that must obtain, keep, and register information about beneficial owners, cf. Section 85b, must, upon request, provide persons and companies that are required to perform customer due diligence procedures under the Money Laundering Act with information about the cooperative bank's ownership structure.

Subsection 2. If the Danish Financial Supervisory Authority receives reports about discrepancies in the registered information about a cooperative bank's beneficial owners under the Money Laundering Act, the Danish Financial Supervisory Authority shall investigate the matter. The Danish Financial Supervisory Authority may set a deadline for the cooperative bank to rectify the matter.

Subsection 3. Upon request from the Danish Financial Supervisory Authority, the Danish Business Authority may, concurrently with the investigation referred to in subsection 2, publish a notice regarding the report in the Danish Business Authority's IT system. The cooperative bank must be given the opportunity to object to the report before it is published, unless the purpose of publishing the notice regarding the report is thereby defeated.

Section 86. Board members are elected by the general meeting, cf. however Section 69.

Section 87. A cooperative bank's articles of association must contain provisions on:

the name of the cooperative bank and any additional names,
the size of the member capital and each member's share in the cooperative bank's equity capital,
the conditions for membership, including the right to admission and the right to withdraw,
the obligations incumbent on the members,
general meeting, board, management,
summons to the general meeting,
time and place of the ordinary general meeting,
which matters are to be processed at the ordinary general meeting,
preparation of accounts and use of profit,
adoption of proposals at the general meeting, including amendments to the articles of association,
voluntary termination of the business, and
provisions on redemption of member capital.

Section 87a. If a cooperative bank's articles of association contain a cap on or limitation of dividend payments and interest on the member capital, this shall not prevent the capital from being counted towards the cooperative bank's actual core capital.

Section 87b. Holders of member capital may not have claims on redemption.

Section 88. Section 80, subsections 1-3, Sections 81, 87 and 88, Section 89, subsections 1 and 3, Section 90, subsections 1 and 2, Sections 91 and 93, Section 94, subsection 1, Section 96, subsection 1, Sections 98, 100a, 101, 102, 105, 108 and 109, Section 111, subsection 1, item 1, and subsections 2 and 4, Sections 112-115, Section 117, subsection 1, Sections 118, 119, 121, 124, 127, 131 and 134, Section 135, subsections 1, 2 and 5, Sections 136-138 and 140-143, and Section 160, subsection 1, first and second sentences, of the Companies Act shall apply correspondingly to cooperative banks, with the necessary adjustments and with the deviations that appear from the provisions of this Act.

Subsection 2. Section 96, subsection 2, Section 106, subsection 1, and Section 107, subsections 1 and 2, items 1-4, 6 and 7, of the Companies Act shall, with the necessary adjustments and with the deviations that appear from the provisions of this Act, additionally apply to cooperative banks that are covered by Section 85a, subsection 1, and where the cooperative bank has not set voting restrictions corresponding to the statutory voting restrictions in the cooperative bank's articles of association.

Subsection 3. Cancellation of membership certificates without court order may take place according to the rules in Section 66, subsection 3, of the Companies Act with the same notice as in the case of cancellation of share certificates that are not negotiable instruments.

Sections 89-97. (Repealed)

Special rules for investment management companies

Section 98. Investors in the UCITS and investment funds that an investment management company administers, and investors with whom the investment management company has concluded an agreement on discretionary portfolio management, cf. Annex 1, Section A, item 4, of the Act on Securities Companies and Investment Services and Activities, cf. Section 10, subsection 2, have the right to elect a member of the board of the investment management company through an investor forum. Investor and consumer organizations have access to propose candidates to the board to the investor forum. The election is carried out at an election meeting or by electronic voting according to rules set out in the investment management company's articles of association. Investors may be represented by proxy.

Subsection 2. The investment management company's articles of association must determine whether investors can vote in proportion to their relative share of the assets that the investment management company administers for UCITS, investment funds, and investors with whom the investment management company has concluded an agreement on discretionary portfolio management, cf. Annex 1, Section A, item 4, of the Act on Securities Companies and Investment Services and Activities, cf. Section 10, subsection 2, or whether each investor has one vote regardless of the invested amount. If investors vote according to their relative share of the assets, the number of votes is calculated based on the net asset value after the last published price or the price on a predetermined date.

Subsection 3. When an investment management company only administers investment funds, SIKAVs, and investment funds that own the company, cf. Section 26, subsection 1, of the Act on Investment Funds etc., the company is exempt from the requirement in subsection 1 to establish an investor forum, provided that at least one member of the board of the administered funds and SIKAVs is elected as a member of the investment management company's board.

Section 99. The board or management of an investment management company may only grant permission in accordance with Section 80, subsections 1 and 2, for a director or employee to be a board member or participate in the management or operation of an investment fund, provided that the investment fund is not administered by the investment management company, and provided that there is no overlap of personnel between the majority of the members of the board of the relevant investment fund and the board of the investment management company. The person concerned may not perform the role of chairman of the board.

Subsection 2. The board or management of an investment management company may not grant permission for directors and other senior employees to be board members or participate in the management or operation of the depositary company or another company with which one of the investment funds administered by the investment management company has concluded significant agreements, or in a company that is affiliated with these companies.

Subsection 3. The board or management may, regardless of subsection 2, however, grant permission for a director or employee to be a board member in the investment management company's subsidiaries or affiliated companies that could be subsidiaries, cf. Section 28.

Section 100. An investment management company must have sufficient qualified staffing and the necessary professional expertise to:

perform the administration of the type of UCITS that the investment management company administers,
assess the performance of the tasks that the investment management company has delegated, cf. Sections 102-105,
be able to make investment decisions for the administered UCITS,
assess the investments made and results achieved when an investment fund's board or an investment management company's board for a SIKAV or securities fund has concluded an agreement on portfolio management regarding the assets of the relevant UCITS or a section thereof, and
take sustainability risks into account when fulfilling the requirements in Section 71, subsection 1, when performing the administration of UCITS.

Section 101. Investment management companies must, in the performance of their tasks for a Danish UCITS, act honestly, fairly, professionally, independently, and exclusively in the interest of the relevant UCITS and its investors.

Subsection 2. Investment management companies must, in daily management, best safeguard the interests of the UCITS they administer.

Subsection 3. The board of investment management companies must:

set a policy regarding conflicts of interest between UCITS, sections, and share classes inter se, as well as between these on the one hand and the investment management company and other companies it is part of a group with, and other contractual partners respectively other customers of the investment management company, including investment funds, on the other hand,
be able to identify conflicts of interest that may harm a UCITS' investors,
limit conflicts of interest as much as possible, and
if the organizational or administrative arrangements implemented to manage conflicts of interest are not sufficient to reasonably guarantee that the risk of harming a UCITS, investment fund, or investor is avoided, in the specific case inform the relevant UCITS, investment fund, or investor about the general content of the conflicts of interest before the parties enter into an agreement, or, if an agreement has been entered into, when the conflict of interest is identified.

Subsection 4. When an investment management company also has permission to perform discretionary portfolio management, it must maintain a clear separation between this portfolio management and the administration of UCITS. The investment management company is, in matters concerning the administration of investment funds, subject to the instruction authority of the individual investment fund's board, and in matters concerning other UCITS, subject to the company's board's instruction authority, unless other rules apply in a foreign UCITS' home state.

Subsection 5. An investment management company must, taking into account any potential conflicts of interest, submit detailed explanations and documentation of its compliance with subsections 1-4 to the Danish Financial Supervisory Authority when the investment management company manages or intends to manage a UCITS on the initiative of a third party, including in cases where the relevant UCITS uses the name of a third-party initiator, or where the investment management company appoints a third-party initiator as the one to whom functions or services are delegated in accordance with Sections 102-105.

Subsection 6. The information that the investment management company must provide to the Danish Financial Supervisory Authority in accordance with subsection 5 must in particular specify what reasonable steps the investment management company has taken to prevent conflicts of interest that arise as a result of the relationship with the third party, or, if such conflicts of interest cannot be prevented, how the investment management company identifies, handles, monitors, and, where relevant, discloses conflicts of interest to prevent them from harming the UCITS' and its investors' interests.

Subsection 7. The Danish Financial Supervisory Authority may set detailed rules on how investment management companies must identify and limit conflicts of interest.

Special rules for asset managers, intermediaries, and advisory representatives regarding shareholder rights

Section 101a. An asset manager must prepare and publish a policy on active ownership in companies that have shares listed for trading on a regulated market, describing how the asset manager integrates active ownership into its investment strategy.

Paragraph 2. The policy on active ownership, cf. paragraph 1, shall describe how the capital manager

monitors companies in which investments are made, within relevant areas, including strategy, financial and non-financial results, risk, capital structure, social and environmental impact, and good corporate governance,
holds dialogue with companies in which investments are made,
exercises voting rights and other rights attached to shares,
cooperates with other shareholders,
communicates with relevant stakeholders in companies in which investments are made, and
handles actual and potential conflicts of interest in connection with the company's active ownership.

Paragraph 3. A capital manager shall once a year publish how the manager's policy on active ownership has been implemented, including a general description of voting and a report on the most significant votes and the manager's use of advisory proxies' services.

Paragraph 4. A capital manager shall publish how the manager has voted on behalf of shareholders at general meetings in companies in which the manager manages shares as part of its portfolio management. Votes that are insignificant due to the subject matter of the vote or the size of the shareholding in the relevant company may be omitted from the publication.

Paragraph 5. A capital manager may choose not to comply with one or more of the requirements in paragraphs 1-4, if the capital manager publishes a clear and reasoned explanation of why the manager has chosen this.

Paragraph 6. The information that is to be published according to paragraphs 1-5 shall be freely available on the capital manager's website.

Paragraph 7. Rules on conflicts of interest in other legislation that apply to a capital manager shall apply correspondingly in connection with activities regarding active ownership.

Section 101 b. A capital manager shall once a year notify Group 1 insurance companies that carry out business covered by Annex 2 to the Act on Insurance Business, and insurance companies that carry out reinsurance of life insurance liabilities, with which a capital management agreement has been concluded, cf. Section 177, paragraph 2, of the Act on Insurance Business, how the capital manager's investment strategy and its implementation in relation to investments in shares that are admitted to trading on a regulated market are in compliance with the capital management agreement and contribute to the return of these companies' or funds' assets in the medium to long term. The same applies if the capital manager has concluded an agreement as mentioned in the first sentence with the Labour Market Supplementary Pension and the Wage Earners' Inflation Fund.

Paragraph 2. The notification, cf. paragraph 1, shall include reporting on

significant risks in the medium to long term associated with the investments,
the portfolio composition,
turnover and turnover costs,
the use of advisory proxies for activities regarding active ownership, and
the capital manager's policy on securities lending, and how the policy is used if applicable for activities regarding active ownership, particularly at the time of the general meeting in the companies invested in.

Paragraph 3. The notification, cf. paragraph 1, shall contain information on

whether and, if applicable, how the capital manager makes investment decisions based on an evaluation of medium to long-term results, including non-financial results, for the companies in which investments are made, and
whether conflicts of interest have arisen in connection with active ownership, what conflicts of interest were involved, if any, and how the capital manager has handled these.

Paragraph 4. If information as mentioned in paragraphs 1-3 is already publicly available, the capital manager is not obliged to notify the information directly to the Group 1 insurance company that carries out business covered by Annex 2 to the Act on Insurance Business, insurance companies that carry out reinsurance of life insurance liabilities, or the Labour Market Supplementary Pension and the Wage Earners' Inflation Fund.

Section 101 c. An intermediary that stores information about shareholders' identity shall, upon request from an issuer or from a third party appointed by the issuer, as soon as possible notify the issuer of information about the identity. An issuer may request an intermediary to collect and forward information about shareholders' identity, including from other intermediaries in the chain of intermediaries, to the issuer.

Paragraph 2. If there is more than one intermediary in a chain of intermediaries, the request according to paragraph 1, first sentence, shall be forwarded between the intermediaries as soon as possible.

Paragraph 3. An intermediary shall notify an issuer of contact details for the next intermediary in the chain of intermediaries as soon as possible after request from the issuer or from a third party appointed by the issuer.

Section 101 d. Personal data about shareholders may only be used for the identification of existing shareholders with a view to fulfilling the provisions in Sections 101 c and 101 e-101 h. An intermediary must not store the personal data, cf. Section 101 c, paragraph 1, for more than 12 months after becoming aware that the person in question has ceased to be a shareholder, unless otherwise follows from other legislation.

Paragraph 2. An intermediary's forwarding of information about a shareholder's identity, cf. Section 101 c, is not considered a breach of the duty of confidentiality that applies according to a contract or other legislation.

Section 101 e. An intermediary shall as soon as possible forward the following information from the issuer to a shareholder or to a third party appointed by the shareholder:

Information that the issuer is obliged to give a shareholder, cf. the Companies Act Section 49 a, paragraph 4, to enable the shareholder to exercise shareholder rights, and which is addressed to all shareholders with shares in the relevant class, or
a notification of where on the company's website the information as mentioned in no. 1 can be found, if the information is available to the shareholders on the issuer's website.

Paragraph 2. Paragraph 1 does not apply when the issuer sends the information or a notification according to paragraph 1 directly to all its shareholders or to a third party appointed by the shareholders.

Paragraph 3. When there is more than one intermediary in a chain of intermediaries, the information, cf. paragraph 1 and Section 101 f, shall be forwarded between the intermediaries as soon as possible, unless the information can be sent directly by the intermediary to the shareholder or to a third party appointed by the shareholder.

Section 101 f. An intermediary shall as soon as possible forward information about the shareholder's exercise of shareholder rights, which the intermediary has received from a shareholder, to the issuer.

Facilitation of the exercise of shareholder rights

Section 101 g. An intermediary shall facilitate the exercise of shareholder rights, including the right to participate and vote in connection with general meetings, by

initiating the necessary arrangements so that a shareholder or a third party appointed by the shareholder can exercise the rights themselves, or
offering to exercise the shareholder rights on explicit authorization and instruction from a shareholder and for the benefit of the shareholder.

Paragraph 2. An intermediary shall as soon as possible forward electronic confirmations of receipt of votes and registration of votes and that votes have been counted, which the intermediary has received from an issuer, to a shareholder or to a third party appointed by the shareholder.

Paragraph 3. When there is more than one intermediary in a chain of intermediaries, the electronic confirmations, cf. paragraph 2, shall be forwarded between the intermediaries as soon as possible, unless the confirmation can be sent directly to a shareholder or a third party appointed by the shareholder.

Fees

Section 101 h. An intermediary shall separately for each individual service, which is delivered according to the provisions in Sections 101 c-101 g, publish the size of any fees.

Paragraph 2. Fees that an intermediary charges from a shareholder, an issuer, or another intermediary shall be non-discriminatory and proportionally adjusted in relation to the actual costs associated with the delivery of the services.

Paragraph 3. An intermediary may only differentiate between any fees that are charged in connection with national and cross-border exercise of rights, when the fees are duly justified and reflect fluctuations in the actual costs incurred in connection with the delivery of these services.

Paragraph 4. Fees are charged to the shareholder, issuer, or intermediary that requests a service.

Special rules for advisory proxies regarding transparency

Section 101 i. An advisory proxy shall once a year publicly present a reference to a code of conduct that the advisory proxy uses, and annually update the report on the use of this code of conduct.

Paragraph 2. If the advisory proxy uses a code of conduct but deviates from one or more of the code's recommendations, the advisory proxy shall indicate which parts of the code are deviated from, present the reasons for this, and state which alternative measures have been taken, if any.

Paragraph 3. An advisory proxy that does not use a code of conduct shall present a clear and reasoned report on why this is the case.

Paragraph 4. The information mentioned in paragraphs 1-3 shall be published and made freely available on the advisory proxy's website.

Section 101 j. An advisory proxy shall once a year publish the following information about the preparation of its investigations, advice, and recommendations regarding voting in listed companies:

The most significant characteristics of the methodologies and models used.
The most important information sources.
The procedures introduced to ensure the quality of investigations, advice, and recommendations regarding voting and the qualifications of the personnel involved.
Whether, and if so how, consideration is given to conditions in the Danish market and to legal, regulatory, and company-specific conditions.
The most significant elements of the voting policies used for the individual markets.
Whether there is dialogue with the companies that are the subject of the advisory proxy's investigations, advice, and recommendations regarding voting, and with the companies' stakeholders, and if so, the extent and nature thereof.
The policy for the prevention and handling of potential conflicts of interest.

Paragraph 2. The information mentioned in paragraph 1 shall be published on the advisory proxy's website and shall be freely available for at least 3 years after the date of publication. The information does not need to be published separately if it is presented as part of the information mentioned in Section 101.

Paragraph 3. An advisory proxy shall identify and as soon as possible notify its customers of actual or potential conflicts of interest and business connections that may affect the preparation of the advisory proxy's investigations, advice, or recommendations regarding voting, and the measures taken to remove, limit, or handle actual or potential conflicts of interest.

Paragraph 4. Paragraphs 1-3 apply correspondingly to advisory proxies that neither have their statutory seat nor their head office in the European Union but carry out activities through a business establishment located in the Union.

Access of investment management companies to delegate tasks regarding the administration of SIKAVs, securities funds, and foreign UCITS

Section 102. The board of directors of an investment management company may delegate functions, cf. Annex 6 to this Act, and services, cf. Section 10 of this Act and Annex 1, section A, no. 1, 4, 5, and 10, of the Act on Securities Brokerage Companies and Investment Services and Activities, which form part of the administration of a SIKAV, securities fund, or foreign UCITS, to a company that has permission to carry out the relevant tasks. The investment management company must be able to objectively justify its entire delegation structure.

Paragraph 2. The board may enter into agreements on portfolio management with a company that meets the conditions in Section 103, paragraph 1, and which is not the depositary for the SIKAV, the securities fund, or the foreign UCITS or another company, whose interests may conflict with the interests of the relevant SIKAV, securities fund, or foreign UCITS and its investors.

Paragraph 3. When the investment management company's board makes a decision on delegation, cf. paragraphs 1 and 2, the delegation must result in more efficient operation of the investment management company's business and more efficient administration of the SIKAV, securities fund, or foreign UCITS that the delegation concerns, and comply with the conditions set out in Sections 103-105.

Paragraph 4. The obligations of the investment management company and the depositary, cf. Sections 106-106 c and 107, are not affected by the board having delegated functions and services to third parties.

Paragraph 5. The board must ensure supervision of the execution of the delegated tasks, cf. Sections 103-105.

Paragraph 6. The board must not delegate such a large part of the administrative tasks in the form of functions or services that the investment management company is no longer considered to be the manager of the administered SIKAVs, securities funds, or foreign UCITS or provider of the services in Section 10 of this Act and Annex 1, section A, no. 1, 4, 5, and 10, of the Act on Securities Brokerage Companies and Investment Services and Activities, and to such an extent that the investment management company becomes an empty company, as far as tasks in connection with the administration of a SIKAV, securities fund, or foreign UCITS are concerned.

Paragraph 7. If the marketing function, cf. Annex 6, no. 3, is handled by one or more distributors who act on their own behalf and who market a SIKAV, securities fund, or foreign UCITS in accordance with the European Parliament and Council Directive on markets in financial instruments or through insurance-based investment products in accordance with the European Parliament and Council Directive on insurance distribution, this is not considered a delegation covered by the requirements for delegation, cf. Sections 102-105, regardless of any distribution agreement between the administration company and the distributor.

Section 103. An investment management company must ensure that the companies to which the company delegates functions or the delivery of services are qualified and capable of carrying out the relevant functions or delivering the relevant services. In cases where the delegation concerns investment management, the board may only delegate tasks to companies that have permission to or are registered for the management of assets, cf. however Section 102, paragraph 2, and which are subject to supervision.

Paragraph 2. The company to which the investment management company has delegated tasks may only re-delegate the delegated tasks or part thereof to another company with individual permission from the investment management company's board, and only if this delegation results in more efficient administration of the administered SIKAVs, securities funds, or foreign UCITS.

Paragraph 3. The board's delegation of tasks must not prevent effective supervision of the investment management company and the administered SIKAVs, securities funds, or foreign UCITS, and must not prevent the investment management company from operating or prevent the SIKAV, securities fund, or foreign UCITS from being managed in the interest of investors and customers.

Paragraph 4. The board may only delegate tasks in connection with investment management to companies that have their seat in a country outside the European Union or countries with which the Union has concluded an agreement in the financial area, when the Financial Supervisory Authority can cooperate with the supervisory authorities in the relevant country.

Section 104. In the delegation of tasks, an investment management company must ensure that the delegation agreement gives the investment management company's management the opportunity at any time to effectively monitor the activities carried out by the company to which the task is delegated.

Paragraph 2. The delegation agreement must not prevent the investment management company from at any time giving further instructions to the company to which functions or the delivery of services is delegated, and from terminating the agreement with immediate effect, if it is in the interest of the administered SIKAV, securities fund, or foreign UCITS and the investment management company's customers.

Paragraph 3. The investment management company ensures that the execution of the functions and services mentioned in Section 10 and Annex 6 to this Act and Annex 1, section A, no. 1, 4, 5, and 10, of the Act on Securities Brokerage Companies and Investment Services and Activities, is in compliance with rules that implement the European Parliament and Council Directive on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities. This obligation applies regardless of the legislative status of

the entity to whom responsibility is delegated, and regardless of where this entity is located.

§ 105. Investment management companies that intend to delegate the performance of one or more functions or services to third parties, pursuant to § 102, subsection 1, and § 103, subsection 2, shall notify the Danish Financial Supervisory Authority of the content and conditions of the agreement before the delegation arrangements enter into force.

Subsection 2. The Danish Financial Supervisory Authority shall set detailed rules on:

when the conditions in subsection 1, § 102, subsections 1-3 and 5, and §§ 103 and 104 are met,
when an investment management company is deemed to have delegated tasks to such an extent that the company is considered a shell company pursuant to § 102, subsection 6, and can no longer be considered to be managing the Danish UCITS, the investment fund, or the foreign UCITS, and
which tasks in relation to delegation are considered significant.

Special rules for depositaries of Danish UCITS

§ 106. An investment management company must ensure that one depositary is appointed for each individual Danish UCITS that it manages, in accordance with the rules in this chapter.

Subsection 2. A depositary must manage and keep the financial assets of a Danish UCITS separately for the Danish UCITS’ share classes. The depositary must be able to provide sufficient financial and professional security to be able to genuinely perform the duties for the Danish UCITS.

Subsection 3. In performing its duties for the Danish UCITS, the depositary must act honestly, fairly, professionally, independently, and solely in the interest of the UCITS in question and its investors.

Subsection 4. The depositary must not carry out activities that can create conflicts of interest between a Danish UCITS, its investors, the investment management company, and the depositary itself, unless the depositary has functionally and hierarchically separated the performance of its depositary duties from its other activities that can create conflicts of interest, and the potential conflicts of interest are fully identified, managed, monitored, and disclosed to the UCITS’ investors.

Subsection 5. The depositary must execute instructions from the investment management company or investment companies that have not delegated the daily management to an investment management company, unless the instructions contravene applicable legislation or the Danish UCITS’ articles of association or fund rules.

§ 106 a. The depositary must ensure that:

the issuance and redemption of a Danish UCITS and the mortification of investors’ shares are carried out in accordance with the rules in the Act on Investment Companies etc. and the articles of association or fund rules,
the calculation of the net asset value per share is carried out in accordance with applicable legislation and the Danish UCITS’ articles of association or fund rules,
the consideration in connection with transactions entered into by the Danish UCITS is delivered to the Danish UCITS within usual time limits on the relevant market,
the payment of dividends or the allocation of profits to increase the assets takes place in accordance with the Danish UCITS’ articles of association or fund rules,
the value of a Danish UCITS’ holding of mortgage bonds is assessed in accordance with the rules regarding this, and
the purchase and sale of other assets than those mentioned in Annex 2 to the Act on Securities Companies and Investment Services and Activities, including mortgage bonds, are carried out at prices that are not less favorable than the market value.

Subsection 2. When the depositary is the depositary for a Danish UCITS that is managed by an administration company with its seat in a country within the European Union or in a country with which the Union has concluded an agreement in the financial sector, the depositary, the board of directors of the investment company or the AIFM, and the administration company must enter into a written agreement on the exchange of information that is necessary for the depositary to perform its duties under this Act, the Act on Investment Companies etc., and rules issued pursuant to these Acts.

Subsection 3. When the depositary is the depositary for a Danish UCITS that is a master fund or feeder fund, pursuant to § 2, item 20 and 21, in the Act on Investment Companies etc., but is not the depositary for both funds in the master-feeder structure, it must enter into a written agreement pursuant to § 4, subsection 4, item 1, in the Act on Investment Companies etc. with the other depositary on the exchange of information to ensure that both depositaries can perform their duties.

Subsection 4. The depositary for a Danish UCITS that is a master fund, pursuant to § 2, item 20, in the Act on Investment Companies etc., must immediately notify the Danish Financial Supervisory Authority if it becomes aware of irregularities in relation to the master fund. If the irregularities are considered to have negative consequences for a feeder fund, the depositary must also notify the feeder fund, its investment management company or administration company, and its depositary.

Subsection 5. The Danish Financial Supervisory Authority may set detailed rules on:

the depositary’s duties towards Danish UCITS for which it is the depositary,
the depositary’s duty to notify a feeder fund and its depositary, pursuant to subsection 3,
the depositary’s duty to notify the Danish Financial Supervisory Authority of matters concerning Danish UCITS for which it is the depositary, and
the content of the agreement mentioned in subsection 2.

§ 106 b. The depositary must monitor the Danish UCITS’ cash flows.

Subsection 2. The depositary must exercise special control to ensure that all payments made by or on behalf of the investors in connection with the subscription of shares in the Danish UCITS are received and booked on cash accounts in the name of the Danish UCITS, the depositary, or the investment management company, when these act on behalf of the Danish UCITS, with entities covered by the rules implementing Article 18, subsection 1, points a-c, of Directive 2006/73/EC of 10 August 2006 on the implementation of Directive 2004/39/EC of the European Parliament and of the Council as regards the organisational requirements for and conditions for the operation of investment firms and definitions of terms for the purposes of the said Directive, and are booked in accordance with the principles set out in Article 16 of Directive 2006/73/EC of 10 August 2006 on the implementation of Directive 2004/39/EC of the European Parliament and of the Council as regards the organisational requirements for and conditions for the operation of investment firms and definitions of terms for the purposes of the said Directive.

Subsection 3. If cash accounts are opened in the name of the Danish UCITS’ depositary pursuant to subsection 2, neither funds from the account-holding entity nor from the depositary may be booked on such accounts.

§ 106 c. The assets of the Danish UCITS must be transferred to the depositary for safekeeping according to the following rules:

For the instruments mentioned in Annex 2 to the Act on Securities Companies and Investment Services and Activities, which can be kept in custody, the following applies:
a) The depositary must keep the instruments mentioned in Annex 2 to the Act on Securities Companies and Investment Services and Activities that can be registered on an account or in a depot opened with the depositary. b) The depositary must keep physical instruments covered by Annex 2 to the Act on Securities Companies and Investment Services and Activities that can be delivered to the depositary. c) The depositary must ensure, while observing § 95 in the Act on Securities Companies and Investment Services and Activities and rules issued pursuant thereto, that the instruments kept, which are covered by Annex 2 to the Act on Securities Companies and Investment Services and Activities, are registered on accounts or in depots that are separate from the depositary’s own, and that the accounts and depots used are opened in the name of the Danish UCITS or its investment management company, so that they can at all times be identified as belonging to the Danish UCITS.
For other assets, the following applies:
a) The depositary must verify that the Danish UCITS is the owner of the assets, based on documentation presented by the Danish UCITS or its investment management company and on any existing external documentation. b) The depositary must maintain an updated register of the assets that the depositary has verified, pursuant to point a.

Subsection 2. The depositary must regularly provide the Danish UCITS or its investment management company with a comprehensive overview of the UCITS’ assets.

Subsection 3. The depositary or a third party to whom the depositary function has been delegated, pursuant to § 106 d, must not sell, pledge, or otherwise dispose of the Danish UCITS’ assets without prior consent from the UCITS or its investment management company. The assets that are kept in custody with the depositary or by a third party to whom the depositary function has been delegated may furthermore only be sold, pledged, or otherwise disposed of if:

the disposal is made on behalf of the Danish UCITS,
the disposal is made after instructions from the investment management company or the Danish UCITS,
the disposal is in the interest of the Danish UCITS and its investors,
the disposal is covered by a high-quality liquid security, which is provided to the Danish UCITS by transfer of ownership rights, and
the market value of the security at all times amounts to at least the market value of the assets covered by the transaction plus a margin.

§ 106 d. The depositary may not delegate tasks covered by § 106 a, subsection 1, and § 106 b to third parties.

Subsection 2. The depositary may delegate tasks covered by § 106 c, subsection 1, to third parties if the following conditions are met:

The tasks are not delegated with the intention of evading the requirements of this Act.
The depositary must be able to objectively justify the delegation.
The depositary must have exercised due skill, care, and diligence in connection with the selection and appointment of any third party to whom the depositary intends to delegate certain of its duties, unless the third party is a central securities depository acting as an issuer central securities depository as defined in Article 1, point f, of Commission Delegated Regulation (EU) 2017/392 supplementing Regulation (EU) No 909/2014 of the European Parliament and of the Council as regards regulatory technical standards for requirements relating to authorisation, supervision and operation in connection with central securities depositories, and continues to exercise ongoing control, pursuant to item 4.
The depositary must exercise due skill, diligence, and care in the ongoing control and monitoring of the third party’s performance of the delegated tasks and the related arrangements that the third party has made with regard to the delegated tasks.

Subsection 3. The depositary must ensure that the third party, in connection with the performance of the delegated tasks, at all times meets the following conditions:

The third party’s organization and competencies must be sufficient relative to the nature and complexity of the assets that have been transferred for safekeeping with the third party.
As far as delegation of tasks covered by § 106 c, subsection 1, is concerned, the third party must be subject to effective regulatory supervision, including minimum capital requirements and supervision in the relevant jurisdiction, and periodic external audit to ensure that the instruments mentioned in Annex 2 to the Act on Securities Companies and Investment Services and Activities are in the third party’s possession, subject to subsection 4.
The third party must keep the depositary’s customers’ assets separate from the depositary’s and the third party’s own assets in a manner such that they can at all times be identified as belonging to the specific customer of the depositary.
The third party must take the necessary steps to ensure that a Danish UCITS’ assets, which are kept in custody with the third party, in the event of the third party’s insolvency, cannot be distributed or realized for the benefit of the third party’s creditors.
The third party must comply with § 101, subsection 1, § 106, subsection 3, and § 106 c, subsections 1 and 3, as well as § 5, subsections 2-4, in the Act on Investment Companies etc.

Subsection 4. The depositary may delegate tasks to third parties, even if the requirements in subsection 3, item 2, are not met, if the following conditions are met:

The delegation must concern the instruments mentioned in Annex 2 to the Act on Securities Companies and Investment Services and Activities, where the legislation of a third country requires that these be kept in custody with a local entity.
The delegation does not go further than required by the legislation of the third country.
No local entity meets the requirements for delegation in subsection 3, item 2.
The investors in the Danish UCITS must be duly informed prior to their investment in the UCITS that the delegation is required due to the legislation of a third country, about the circumstances justifying the delegation, and about the risks associated with it.
The Danish UCITS or its investment management company must have instructed the depositary to delegate the safekeeping of the instruments mentioned in Annex 2 to the Act on Securities Companies and Investment Services and Activities to the local entity.

Subsection 5. Delegation under the exception in subsection 4 may only be maintained as long as all the conditions in subsection 4, items 1-3, are met.

Subsection 6. The provision of services from a central securities depository acting as an issuer central securities depository as defined in Article 1, point e, of Commission Delegated Regulation (EU) 2017/392 supplementing Regulation (EU) No 909/2014 of the European Parliament and of the Council as regards regulatory technical standards for requirements relating to authorisation, supervision and operation in connection with central securities depositories, is not considered as delegation of the depositary’s safekeeping functions. The provision of services from a central securities depository acting as an investor central securities depository as defined in the aforementioned delegated act shall be considered as delegation of the depositary’s safekeeping functions.

Subsection 7. A third party may re-delegate the tasks that the third party has been delegated by the depositary, pursuant to subsections 2 and 4, if the re-delegation meets the same requirements that apply to the depositary’s delegation. § 107, subsections 1 and 2, apply to the relevant parties in the event of re-delegation.

§ 107. The depositary is liable to the Danish UCITS and the UCITS’ investors for the loss of the instruments mentioned in Annex 2 to the Act on Securities Companies and Investment Services and Activities, which are kept in custody pursuant to § 106 c, subsection 1, item 1, where the loss is caused by the depositary or the third party to whom the task has been delegated pursuant to § 106 d, subsection 2, subject to subsection 2.

Subsection 2. The depositary is not liable for loss pursuant to subsection 1 if the depositary can prove that the loss is due to an external event which the depositary could not reasonably have been expected to have control over, and whose consequences would have been inevitable even if all reasonable precautions had been taken by the depositary.

Subsection 3. In the event of loss pursuant to subsection 1, the depositary must without undue delay provide compensation to the Danish UCITS or its investment management company on behalf of the UCITS in the form of the instruments mentioned in Annex 2 to the Act on Securities Companies and Investment Services and Activities of the same type or an amount corresponding to the value of these.

Subsection 4. The depositary is liable to the Danish UCITS and its investors for any other loss that they may suffer as a result of the depositary’s negligent or intentional breach of its obligations under this Act.

Subsection 5. The depositary is liable, regardless of whether delegation has occurred pursuant to § 106 d.

Subsection 6. The depositary may not by agreement release itself from or limit its liability for compensation in connection with the loss of instruments covered by Annex 2 to the Act on Securities Companies and Investment Services and Activities, which are kept in custody pursuant to § 106 c, subsection 1, item 1, with the depositary or the third party to whom the task has been delegated pursuant to § 106 d, subsection 2. Agreements contrary to the first sentence are invalid.

Subsection 7. Investors in Danish UCITS may make claims against the depositary either directly or indirectly through the Danish UCITS or its investment management company. This must, however, not lead to double compensation or unequal treatment of the investors.

§ 107 a. The depositary must, upon request, make all information available to the Danish Financial Supervisory Authority that the depositary has obtained in the performance of its duties and which may be necessary for the Danish Financial Supervisory Authority as the supervisory authority for a Danish UCITS and its investment management company.

Subsection 2. If the investment management company’s competent authorities are different from the depositary’s, the Danish Financial Supervisory Authority must immediately forward the received information to the investment management company’s competent authorities.

§ 107 b. The Danish Financial Supervisory Authority may set detailed rules for the following:

The conditions for the performance of the depositary functions in § 106, subsection 5, § 106 a, subsection 1, items 1-3 and 5, § 106 b, and § 106 c, subsection 1, including:
a) Which types of the instruments mentioned in Annex 2 to the Act on Securities Companies and Investment Services and Activities are covered by the depositary’s safekeeping obligation, pursuant to § 106 c, subsection 1, item 1.

b) The conditions for how the depositary company shall perform its custody tasks with regard to the instruments mentioned in Annex 2 to the Act on Fund Brokerage Companies and Investment Services and Activities, which are registered with a securities central. c) The conditions for how the depositary company shall securely and in accordance with Section 106 c, subsection 1, no. 1, store the instruments mentioned in Annex 2 to the Act on Fund Brokerage Companies and Investment Services and Activities, which are issued to bearer and registered with an issuer or registrar.
2) The depositary company's obligations in connection with the selection and monitoring of third parties when delegating depositary company tasks, cf. Section 106 d, subsection 2, no. 3 and 4.
3) The requirements placed on third parties regarding the separation of the depositary's own assets from the depositary's customers' assets, cf. Section 106 d, subsection 3, no. 3.
4) The steps that a third party must take to ensure that a Danish UCITS' assets, which are stored in custody with the third party, in the event of the third party's insolvency, cannot be distributed or realized for the benefit of the third party's creditors, cf. Section 106 d, subsection 3, no. 4.
5) When financial assets, for which the depositary company is responsible, are to be considered lost, cf. Section 107, subsection 1.
6) What is to be understood as external events, which the depositary company could not reasonably be expected to have control over, and whose consequences would have been unavoidable even if the depositary company had taken all reasonable precautions, cf. Section 107, subsection 2.
7) The conditions for fulfilling the independence requirement in Section 101, subsection 1, and Section 106, subsection 3.
Sections 108-116. (Repealed)
Chapter 9
Disclosure of Confidential Information
Section 117. Board members, members of local boards and similar, members of the representative body in a financial company that is not a savings bank, auditors and examiners as well as their substitutes, founders, valuers, liquidators, directors, and other employees must not unauthorizedly disclose or exploit confidential information that they have become aware of in the course of their duties, cf. however subsection 3. The provision applies correspondingly to financial holding companies.
Subsection 2. The person who receives information according to subsection 1 is subject to the confidentiality obligation mentioned in subsection 1.
Subsection 3. Subsection 1 does not apply to credit institutions' disclosure of confidential information that takes place in connection with the transfer of a lender's rights or a defaulted credit agreement, cf. Section 2, no. 13, in the Act on Credit Service Companies and Credit Buyers, to a credit buyer, cf. Section 2, no. 6, in the Act on Credit Service Companies and Credit Buyers.
Section 117 a. A credit institution may disclose information about a customer's name and address to the person who transferred money to a customer's account as a result of an erroneous transfer of money to the relevant customer's account, such that the relevant person can pursue a potential claim against the customer in connection with the transaction. A credit institution may correspondingly disclose information about a customer's name and address to a payee, when the customer has used a payment instrument to pay for goods or services with the payee and an erroneous transaction has occurred.
Subsection 2. The credit institution must notify the customer of the disclosure before information about the customer's name and address can be disclosed.
Subsection 3. If a customer has name and address protection according to the Act on the Central Person Register, the credit institution cannot disclose information about the relevant person, cf. subsection 1.
Section 118. Usual information about customer relationships may be disclosed for use in carrying out administrative tasks.
Subsection 2. For use in carrying out administrative tasks, information may be disclosed to a joint-stock company that is wholly owned by Labour Market Supplementary Pension, and to Labour Market Supplementary Pension, cf. the Act on Labour Market Supplementary Pension Section 26 b, subsection 3, and Section 23, subsection 4, and to the managing company in an insurance administration association. Subsection 3. Information about a capital or rate pension, which is established in a credit institution as part of a labour market pension scheme, may be disclosed from the credit institution to an insurance administration association that is affiliated within the same group with the credit institution, for use in advising on the scheme. Subsection 4. The person who receives information according to subsections 1-4 is subject to the confidentiality obligation mentioned in Section 117, subsection 1. Subsection 5. The Danish Financial Supervisory Authority establishes detailed rules on which information constitutes usual customer information according to subsection 1.
Section 118 a. A financial company may disclose information about a customer's name and contact details, including personal identification number and CVR number, to an association or company that wholly or partially owns the financial company, if the customer relationship in the financial company means that the customer is or may become a member of the association or participant in the company. The information may only be disclosed for use in communication about the membership and the associated rights in the association or company that owns the financial company.
Subsection 2. The person who receives information according to subsection 1 is subject to the confidentiality obligation mentioned in Section 117, subsection 1.
Section 119. Information about purely private matters must not be disclosed without the customer's consent, unless the disclosure is justified according to Section 117, subsection 1, or Section 118, subsection 2.
Section 120. Information may be disclosed to the financial company's parent company for use in risk management of companies in the group, provided that the parent company is a financial company or a financial holding company. This does not apply, however, to information about purely private matters.
Subsection 2. Information about private customers cannot be disclosed for use in risk management, cf. subsection 1, except in the special cases where the information about a private customer concerns obligations that have or may have a significant size.
Section 120 a. Information about business customers may be exchanged between credit institutions and mortgage credit institutions that are affiliated within the same group, for use in risk management, including credit assessment and credit administration. The same applies to the exchange of information with these companies' financial holding companies and subsidiaries. Exchange of information may only take place with subsidiaries that provide loans or operate leasing business.
Subsection 2. The provision in subsection 1 also applies when exchanging information between jointly owned credit and mortgage credit institutions and holders of capital shares in the relevant credit or mortgage credit institution, when the aforementioned holders are credit or mortgage credit institutions and jointly hold more than 4/5 of the capital shares. The same applies to the exchange of information with the subsidiaries of the jointly owned companies that provide loans or operate leasing business. Subsection 3. Disclosure according to subsections 1 and 2 does not include information as mentioned in Section 119. Subsection 4. The person who receives information according to subsections 1 and 2 is subject to the confidentiality obligation mentioned in Section 117, subsection 1.
Section 120 b. A lending credit institution or mortgage credit institution may disclose information about a borrower to the issuing credit institution or mortgage credit institution, if a loan agreement has been entered into, from which it appears that the loan can be financed by another credit institution's or mortgage credit institution's issuance of special covered bonds or special covered mortgage bonds. Exchange of information between the lending credit institution or mortgage credit institution and the credit institution or mortgage credit institution that issues the special covered bonds or special covered mortgage bonds, with which the loan is financed, may take place, to the extent that it is necessary with regard to risk management and administration of the portfolio in the register or the portfolio in a series or group of series with a series reserve fund.
Section 121. Information about a private customer must not be disclosed for use in marketing or advice, unless the customer has given consent thereto, cf. however Section 118, subsection 3.
Subsection 2. To group companies that are subject to confidentiality as mentioned in Section 117, subsection 1, and to companies where several financial companies or Danish UCITS jointly own a company that carries out business that the financial company must carry out through a subsidiary, or a company that is accessory to the financial company that is subject to a confidentiality obligation as mentioned in Section 117, subsection 1, disclosure according to subsection 1 may take place without consent, if it concerns general customer information that forms the basis for classification into customer categories, and if the disclosure is necessary for the company to which the information is disclosed to pursue a legitimate interest, and the consideration for the private customer does not outweigh this interest. Subsection 3. Usual information about business customer relationships may be disclosed for use in marketing and advice to a financial company that is subject to confidentiality as mentioned in Section 117, subsection 1.
Section 122. The financial company must draw up guidelines on the extent to which information is disclosed from the company. The guidelines must be publicly accessible.
Section 123. (Repealed)
Part V
Capital Conditions of Financial Companies
Chapter 10
Solvency
General rules on solvency
Section 124. The board and management of a credit institution and a mortgage credit institution must ensure that the institution has a sufficient capital base and has internal procedures for risk measurement and risk management for continuous assessment and maintenance of a capital base of a size, type, and distribution that is appropriate to cover the institution's risks. These procedures must be subject to regular internal control to ensure that they continue to be sufficient and stand in reasonable proportion to the nature, scope, and complexity of the institution's business.
Subsection 2. The board and management of a credit institution and a mortgage credit institution must, on the basis of the assessment according to subsection 1, calculate the institution's individual solvency needs. The solvency need is calculated as the sufficient capital base as a percentage of the total risk exposure. The part of the solvency need that concerns the risk of excessive gearing is calculated as a percentage of the total non-risk-weighted exposure. The solvency need cannot be less than the capital base requirement according to Article 92, subsection 1, letter c, and the minimum capital requirement in Article 93 or the leverage ratio requirement according to Article 92, subsection 1, letter d, in Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions. Subsection 3. The Danish Financial Supervisory Authority may individually set a higher requirement for the capital base in the form of a supplement to the capital base requirement, which appears from Article 92, subsection 1, letter c, or to the leverage ratio requirement, which appears from Article 92, subsection 1, letter d, in Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions. This individual solvency requirement is an expression of the Danish Financial Supervisory Authority's assessment of the institution's sufficient capital base as a percentage of the total risk exposure and as a percentage of the non-risk-weighted exposure, if the solvency requirement concerns the risk of excessive gearing. Subsection 4. The Danish Financial Supervisory Authority may set an additional capital base requirement for a group of credit institutions or mortgage credit institutions with similar risk profiles, which takes into account special risks in this group of institutions. Subsection 5. If a credit institution and a mortgage credit institution are bound by the output floor in Article 92, subsection 3, in Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions, the following applies:

The Danish Financial Supervisory Authority shall, as soon as possible and in any case no later than at the end date of the next control and assessment process, review the solvency need supplement according to subsections 2-4 and remove all elements therein that would involve double counting of risks that are already fully covered, by a credit institution and a mortgage credit institution being bound by the output floor.
The nominal value of the solvency need supplement according to subsections 2-4 to counteract other risks than the risk of excessive gearing must not increase, as a result of a credit institution or mortgage credit institution becoming bound by the output floor, before the control according to no. 1 is completed.
Subsection 6. As long as a credit institution and a mortgage credit institution are bound by the output floor according to Article 92, subsection 3, in Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions, the calculation of the solvency need according to subsection 2 and the setting of a higher requirement for the capital base for a credit institution and a mortgage credit institution in accordance with subsections 3 and 4 must not involve double counting of risks that are already fully covered, by the institution being bound by the output floor. Subsection 7. The Danish Financial Supervisory Authority may impose on the credit institution or mortgage credit institution to write down assets etc. for use in calculating the capital base. Subsection 8. For mortgage credit institutions, Article 92, subsection 1, letter c, in Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions must be fulfilled both in the individual series with series reserve funds and in the institution otherwise. Subsection 9. The Danish Financial Supervisory Authority may establish detailed rules on credit institutions' and mortgage credit institutions' publication of their calculation of the individual solvency need, cf. subsection 2, and the individual solvency requirement, cf. subsection 3. Subsection 10. The Minister for Business establishes detailed rules on which type of capital can be used to fulfill the individual solvency supplement, cf. subsection 3.
Section 124 a. The Danish Financial Supervisory Authority annually sets an indicative level of additional capital base for the individual credit institutions and informs the credit institutions about this. The indicative level of additional capital base is based on a supervisory stress test and is calculated as a percentage of the total risk exposure and as a percentage of the total non-risk-weighted exposure.
Subsection 2. The part of the guidance on additional capital base that is set to take into account other risks than the risk of excessive gearing must be fulfilled with own core capital beyond the own core capital, which is maintained to fulfill
the capital base requirement in Article 92, subsection 1, letters a-c, in Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions,
the part of the individual solvency requirement set in accordance with Section 124, subsection 3, or individual solvency needs set in accordance with Section 124, subsection 2, which is set to remedy other risks than the risk of excessive gearing, and
the combined capital buffer requirement in accordance with Section 125 a.
Subsection 3. The part of the indicative level of additional capital base that is set to take into account the risk of excessive gearing must be fulfilled with core capital beyond the core capital, which is maintained to fulfill
the capital base requirement in Article 92, subsection 1, letter d, in Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions,
the part of the individual solvency requirement set in accordance with Section 124, subsection 3, or individual solvency needs set in accordance with Section 124, subsection 2, which is set to remedy the risk of excessive gearing, and
the leverage ratio buffer requirement in Article 92, subsection 1a, in Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions.
Subsection 4. The Danish Financial Supervisory Authority must, in the event of repeated or persistent breaches of the indicative level of additional capital base, assess whether a higher solvency requirement should be set for the institution, cf. Section 124, subsection 3.
Section 124 b. Credit institutions must introduce internal systems and apply the standard method or the simplified standard method to identify, assess, manage, and mitigate the risks that arise as a result of potential changes in interest rates, which affect both the economic value of an institution's capital base and the net interest income from an institution's non-trading activities.
Subsection 2. The Danish Financial Supervisory Authority may require a credit institution to use the standard method mentioned in subsection 1, if the Danish Financial Supervisory Authority assesses that the institution's internal systems are not satisfactory.
Subsection 3. The Danish Financial Supervisory Authority may require a small and non-complex credit institution as defined in Article 4, subsection 1, no. 145, in Regulation No 575/2013/EU of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions to use the standard method mentioned in subsection 1, if the Danish Financial Supervisory Authority finds that the simplified standard method is not sufficient to take into account the interest rate risk that arises as a result of the institution's non-trading activities. Subsection 4. The Danish Financial Supervisory Authority may use supervisory powers according to Section 344, subsection 1, or indicate that a company must use other modeling and parameter assumptions than specified in Commission Delegated Regulation (EU) 2024/856 of 1 December 2023, as a minimum, where the company's economic value falls by more than 15 pct. of its core capital or the company experiences a large drop in its net interest income as a result of a sudden and unexpected change in interest rates.
Section 125. A financial conglomerate, cf. Section 307 b, must fulfill a supplementary capital requirement.
Subsection 2. The supplementary capital requirement and capital to cover this are calculated quarterly, and the result of the calculation is reported to the Danish Financial Supervisory Authority.
Subsection 3. In financial conglomerates, Section 124, subsection 1, applies with the necessary adjustments for the supplementary capital requirement. The top parent company in the conglomerate ensures compliance with this provision.
Subsection 4. If a financial conglomerate does not fulfill the supplementary capital requirement, or there is a probability that the requirement

april 2026. 49 Nr. 432.

If not met, the Financial Supervisory Authority may order the parent company in the conglomerate to limit distributions. Distribution restrictions include the actions mentioned in Section 125 b, paragraph 5.

Paragraph 5. If a financial conglomerate does not meet the supplementary capital requirement, Section 125 c and Section 125 d, paragraph 1, apply with the necessary adjustments. The top parent company in the conglomerate ensures compliance with this provision.

Paragraph 6. The Financial Supervisory Authority establishes detailed rules for the calculation of the supplementary capital requirement, cf. paragraph 1, and capital to cover it.

Section 125 a. A credit institution and a mortgage credit institution must meet a combined capital buffer requirement.

Paragraph 2. The capital conservation buffer in a company as referred to in paragraph 1 must be at least 2.5% of the company's total risk exposure calculated in accordance with Article 92, paragraph 3, of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions.

Paragraph 3. The company-specific countercyclical capital buffer in a company as referred to in paragraph 1 must be at least the company's total risk exposure calculated in accordance with Article 92, paragraph 3, of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions multiplied by the company-specific countercyclical capital buffer rate.

Paragraph 4. The SIFI buffer in a systemically important financial institution (SIFI), cf. Section 308, must on an individual, sub-consolidated and consolidated basis be at least the systemically important financial institution's (SIFI) total risk exposures calculated in accordance with Article 92, paragraph 3, of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions multiplied by the SIFI buffer rate.

Paragraph 5. The G-SIFI buffer in a globally systemically important financial institution (G-SIFI), cf. Section 310, must on a consolidated basis be at least the globally systemically important financial institution's (G-SIFI) total risk exposure calculated in accordance with Article 92, paragraph 3, of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions multiplied by the G-SIFI buffer rate.

Paragraph 6. A systemic buffer in a company as referred to in paragraph 1 must be at least the company's total risk exposure based on the exposures to which the systemic buffer applies pursuant to Section 125 h, calculated in accordance with Article 92, paragraph 3, of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions multiplied by the systemic buffer rate.

Paragraph 7. The combined capital buffer requirement must be met with common equity tier 1 capital in addition to:

Common equity tier 1 capital that must be maintained to meet the capital base requirement in Article 92, paragraph 1, points (a)-(c), of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions.
Common equity tier 1 capital that is maintained to meet the part of the individual solvency requirement established pursuant to Section 124, paragraph 3, or individual solvency needs established pursuant to Section 124, paragraph 2, which is set to address risks other than the risk of excessive leverage.
Common equity tier 1 capital that is maintained to meet the part of the indicative level of additional capital base that is set to address risks other than the risk of excessive leverage.
Common equity tier 1 capital that is maintained to meet the risk-based elements of requirements for write-down eligible liabilities as set out in Section 266.

Paragraph 8. The Financial Supervisory Authority establishes detailed rules on the calculation of the combined capital buffer requirement.

Section 125 b. A credit institution and a mortgage credit institution do not meet the combined capital buffer requirement established pursuant to Section 125 a, paragraph 1, if the institution or company does not simultaneously have a sufficient capital base to meet the requirements in Article 92, paragraph 1, points (a)-(c), of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions, the individual solvency requirement established pursuant to Section 124, paragraph 3, or Section 125, paragraph 3, and the individual solvency need established pursuant to Section 124, paragraph 2, to address risks other than the risk of excessive leverage.

Paragraph 2. A globally systemically important financial institution (G-SIFI) designated pursuant to Section 310 does not meet the leverage ratio buffer requirement, cf. Article 92, paragraph 1a, of the Regulation of the European Parliament and of the Council on prudential requirements for credit institutions and investment firms, if the globally systemically important financial institution (G-SIFI) does not simultaneously have a sufficient capital base to meet the requirements in Article 92, paragraph 1, point (d), of the Regulation on prudential requirements for credit institutions and investment firms as well as the parts of the individual solvency requirement, cf. Section 124, paragraph 3, and the individual solvency need, cf. Section 124, paragraph 2, which are set to address the risk of excessive leverage.

Paragraph 3. A credit institution and a mortgage credit institution that meet the combined capital buffer requirement, cf. Section 125 a, paragraph 1, and the leverage ratio buffer requirement, where the leverage ratio buffer requirement applies, must not make distributions relating to common equity tier 1 capital, cf. paragraph 7, to the extent that this reduces the common equity tier 1 capital to a level where the combined capital buffer requirement or the leverage ratio buffer requirement is no longer met, subject to paragraph 9.

Paragraph 4. A company as referred to in paragraph 3 that does not meet the combined capital buffer requirement, or a globally systemically important financial institution (G-SIFI) as referred to in paragraph 2 that does not meet the leverage ratio buffer requirement, must calculate the relevant maximum distribution amount and immediately notify the Financial Supervisory Authority thereof.

Paragraph 5. A company as referred to in paragraph 3 that does not meet the combined capital buffer requirement, or a globally systemically important financial institution (G-SIFI) as referred to in paragraph 2 that does not meet the leverage ratio buffer requirement, must not carry out the following actions before the company has calculated the maximum distribution amount and notified the Financial Supervisory Authority pursuant to Section 125 d:

Make distributions relating to common equity tier 1 capital, cf. paragraph 7.
Incur an obligation to pay variable remuneration or estimated pension benefits or pay variable remuneration, if the obligation to pay was incurred at a time when the company did not meet the combined capital buffer requirement or the leverage ratio buffer requirement.
Make payments relating to hybrid tier 1 capital instruments.

Paragraph 6. A company as referred to in paragraph 1 and a globally systemically important financial institution (G-SIFI) as referred to in paragraph 2 must not distribute more than the maximum distribution amount through actions covered by paragraph 5, points 1-3, subject to paragraph 9.

Paragraph 7. For the purposes of paragraphs 3 and 5, distribution relating to common equity tier 1 capital means:

Payment of cash dividends.
Distribution of fully or partly paid fund shares or other capital instruments referred to in Article 26, paragraph 1, point (a), of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions.
Redemption or repurchase by a company of its own shares or other capital instruments referred to in Article 26, paragraph 1, point (a), of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions.
Repayment of amounts paid in connection with the capital instruments referred to in Article 26, paragraph 1, point (a), of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions.
Distribution of items referred to in Article 26, paragraph 1, points (b)-(e), of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions.

Paragraph 8. A company as referred to in paragraph 1 and a globally systemically important financial institution (G-SIFI) as referred to in paragraph 2 must take necessary measures to ensure that the size of the profits that can be distributed and the maximum distribution amount are calculated accurately. The company must be able to document this accuracy to the Financial Supervisory Authority upon request.

Paragraph 9. Paragraphs 3 and 6 apply only to payments that result in a reduction of common equity tier 1 capital or a reduction of profits, and where suspension of payment or failure to pay is not equivalent to default or would not lead to the initiation of insolvency proceedings.

Paragraph 10. The Financial Supervisory Authority establishes rules on the calculation and reporting of the maximum distribution amounts.

Section 125 c. A credit institution and a mortgage credit institution that do not meet the combined capital buffer requirement, cf. Section 125 a, paragraph 1, or the leverage ratio buffer requirement, cf. Article 92, paragraph 1a, of the Regulation of the European Parliament and of the Council on prudential requirements for credit institutions and investment firms, must prepare and submit a capital preservation plan to the Financial Supervisory Authority no later than 5 working days after the company should have found that it does not meet the requirement, subject to paragraph 2.

Paragraph 2. The Financial Supervisory Authority may, upon request from the company, extend the deadline in paragraph 1 by up to 5 working days based on the company's individual situation and taking into account the scope and complexity of the company's activities.

Paragraph 3. The Financial Supervisory Authority approves a capital preservation plan if it can reasonably be expected that the company, with the capital preservation plan, can maintain or raise sufficient capital to enable the company to meet the combined capital buffer requirement, cf. Section 125 a, paragraph 1, or the leverage ratio buffer requirement, cf. Article 92, paragraph 1a, of the Regulation of the European Parliament and of the Council on prudential requirements for credit institutions and investment firms, within a deadline set by the Financial Supervisory Authority.

Paragraph 4. If the Financial Supervisory Authority does not approve the capital preservation plan, cf. paragraph 3, the Financial Supervisory Authority orders the company to increase its capital base within a deadline set by the Financial Supervisory Authority. The Financial Supervisory Authority may also impose stricter restrictions on distributions than those following from Section 125 b, if deemed necessary.

Paragraph 5. The Financial Supervisory Authority establishes detailed rules on the content of a capital preservation plan.

Section 125 d. A credit institution and a mortgage credit institution that do not meet the combined capital buffer requirement, cf. Section 125 a, paragraph 1, or the leverage ratio buffer requirement, cf. Article 92, paragraph 1, point (a), of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions, if the leverage ratio buffer requirement applies, and which intend to carry out an action covered by Section 125 b, paragraph 5, points 1-3, must immediately notify the Financial Supervisory Authority thereof and provide:

The size of the capital that the company maintains, distributed into
a) common equity tier 1 capital, b) hybrid tier 1 capital, and c) supplementary capital.
The size of the interim profit and the profit at year-end.
The maximum distribution amount.
The size of the profits that the company intends to distribute into
a) dividend payments, b) purchase of own shares, c) payments relating to hybrid tier 1 capital instruments, and d) payment of variable remuneration or estimated pension benefits either by incurring a new obligation to pay or by paying in accordance with an obligation to pay incurred at a time when the company did not meet the combined capital buffer requirement.

Paragraph 2. In groups in which a credit institution or a mortgage credit institution is included, paragraph 1 applies correspondingly to the Danish group or sub-group. The top credit institution or mortgage credit institution in the group or sub-group ensures compliance with this provision.

Section 125 e. In groups in which a credit institution or a mortgage credit institution is included, Sections 125 a-125 c apply to the Danish group or sub-group. The top credit institution or mortgage credit institution in the group or sub-group ensures compliance with these provisions.

Paragraph 2. In groups in which a globally systemically important financial institution (G-SIFI), cf. Section 310, and a systemically important financial institution (SIFI), cf. Section 308, are included, and where both a G-SIFI buffer and a SIFI buffer apply on a consolidated basis, the higher of the G-SIFI buffer and the SIFI buffer applies.

Section 125 f. The Minister for Business Affairs sets a countercyclical buffer rate regarding credit exposures in Denmark on a quarterly basis, taking into account inter alia the credit cycle, the risks resulting from excessive lending growth, and special conditions in the national economy. The Minister for Business Affairs decides from which date credit institutions and mortgage credit institutions must apply the countercyclical buffer rate to calculate their company-specific countercyclical capital buffer, cf. Section 125 a, paragraph 3. The Minister for Business Affairs publishes a notice about the quarterly setting of the countercyclical buffer rate on the Ministry of Business Affairs' website.

Paragraph 2. A countercyclical buffer rate between 0 and 2.5% set in another country must be used by credit institutions and mortgage credit institutions to calculate their company-specific countercyclical capital buffer, cf. Section 125 a, paragraph 3, in connection with credit exposures located in that country, subject to paragraph 6.

Paragraph 3. The Minister for Business Affairs may decide that a countercyclical buffer rate of over 2.5% set in another country must be used by credit institutions and mortgage credit institutions to calculate their company-specific countercyclical capital buffer, cf. Section 125 a, paragraph 3, in connection with credit exposures located in that country. If the Minister for Business Affairs has decided to apply a buffer rate of over 2.5% pursuant to the first sentence, the Minister for Business Affairs also decides from which date companies must apply the buffer rate to calculate their company-specific countercyclical capital buffer, cf. Section 125 a, paragraph 3. The Minister for Business Affairs publishes a notice about a buffer rate set pursuant to the first sentence on the Ministry of Business Affairs' website. If the Minister for Business Affairs has not made a decision on the application of a countercyclical buffer rate of over 2.5% pursuant to the first sentence, credit institutions and mortgage credit institutions must apply a buffer rate of 2.5% to calculate their company-specific countercyclical capital buffer, cf. Section 125 a, paragraph 3, in connection with credit exposures located in that country.

Paragraph 4. A countercyclical buffer rate between 0 and 2.5% for another country within the European Union or in a country with which the Union has concluded an agreement in the financial area, set pursuant to paragraph 2 or 3, applies from the date indicated on the website of the competent authority for that country, subject to paragraph 9. A countercyclical buffer rate between 0 and 2.5% for a country outside the European Union, with which the Union has not concluded an agreement in the financial area, set pursuant to paragraph 2 or 3, applies 12 months after the date on which a change in the buffer rate has been published by the competent authority for that country in accordance with that country's national rules, subject to paragraph 9.

Paragraph 5. If no countercyclical buffer rate has been set in a country outside the European Union, with which the Union has not concluded an agreement in the financial area, the Minister for Business Affairs may set a countercyclical buffer rate that credit institutions and mortgage credit institutions must use to calculate their company-specific countercyclical capital buffer, cf. Section 125 a, paragraph 3, in connection with credit exposures located in that country. The Minister for Business Affairs may set a buffer rate pursuant to the first sentence if it can reasonably be assumed that a buffer rate should be set to protect companies covered by Section 125 a, paragraph 1, against the risk of excessive lending growth in that country.

Paragraph 6. If a countercyclical buffer rate has been set in a country outside the European Union, with which the Union has not concluded an agreement in the financial area, the Minister for Business Affairs may set a different buffer rate for use by credit institutions and mortgage credit institutions to calculate their company-specific countercyclical capital buffer, cf. Section 125 a, paragraph 3, in connection with credit exposures located in that country. The Minister for Business Affairs may set a buffer rate pursuant to the first sentence if it can reasonably be assumed that the buffer rate set by that country is not sufficient to adequately protect companies covered by Section 125 a, paragraph 1, against the risk of excessive lending growth in that country.

Paragraph 7. If the Minister for Business Affairs sets a buffer rate pursuant to paragraph 5 or 6, which increases the applicable countercyclical buffer rate, the Minister for Business Affairs decides from which date credit institutions and mortgage credit institutions must apply the relevant buffer rate to calculate their company-specific countercyclical capital buffer.

Paragraph 8. The Minister for Business Affairs publishes any setting pursuant to paragraphs 5 and 6 of a countercyclical buffer rate for a country outside the European Union, with which the Union has not concluded an agreement in the financial area, on the Ministry of Business Affairs' website.

Paragraph 9. A credit institution and a mortgage credit institution may apply a reduced countercyclical buffer rate to calculate their company-specific countercyclical capital buffer, cf. Section 125 a, paragraph 3, from the day on which a reduced countercyclical buffer rate has been published.

Section 125 g. The G-SIFI buffer rate depends on which sub-category the globally systemically important financial institution (G-SIFI) is placed in, cf. rules issued pursuant to Section 310, paragraph 3.

Paragraph 2. The Minister for Business Affairs sets G-SIFI buffer rates for the individual sub-categories of globally systemically important financial institutions (G-SIFI).

Paragraph 3. The SIFI buffer rate depends on which category the systemically important financial institution (SIFI) is placed in, cf. Section 308, paragraph 7.

Paragraph 4. The Minister for Business sets a SIFI buffer rate for the individual categories of systemic importance, cf. Section 308, paragraph 7, for a systemically important financial institution (SIFI).

Section 125 h. The Minister for Business may set a systemic buffer rate for the purpose of calculating a systemic buffer, taking into account the prevention and limitation of long-term systemic or macro-prudential risks not covered by Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions. A systemic buffer rate may not be used to mitigate risks covered by the countercyclical buffer rate, cf. Section 125 f, the SIFI buffer rate, or the G-SIFI buffer rate, cf. Section 125 g, or risks that are fully covered by the calculation in Article 92, paragraph 3, of the Regulation of the European Parliament and of the Council on prudential requirements for credit institutions and investment firms. The Minister for Business further determines which exposures the buffer rate shall apply to, which credit institutions and mortgage credit institutions shall be covered by the buffer rate, and from which date the companies shall apply the buffer rate for the calculation of their systemic buffer, cf. Section 125 a, paragraph 6. The Minister for Business may set different rates for different groups of the covered companies. The Minister for Business publishes a notice on the setting of a systemic buffer rate on the Ministry of Business's website.

Paragraph 2. The Minister for Business may decide that a systemic buffer rate set in another country within the European Union or in a country with which the Union has concluded an agreement in the financial area shall be used by credit institutions and mortgage credit institutions for the calculation of their systemic buffer, cf. Section 125 a, paragraph 6, in connection with exposures in the relevant country. The Minister for Business also decides from which date the companies shall apply the buffer rate for the calculation of their systemic buffer, cf. Section 125 a, paragraph 6. The Minister for Business publishes a notice on a buffer rate pursuant to the first sentence on the Ministry of Business's website.

Paragraph 3. If the Minister for Business assesses that a systemic buffer rate recognized by the Minister for Business pursuant to paragraph 2 prevents and limits a risk that can be equated with a risk covered by a systemic buffer rate set pursuant to paragraph 1, the highest of these buffer rates shall apply to the companies in connection with exposures in the relevant country for the purpose of calculating their systemic buffer, cf. Section 125 a, paragraph 6. If the relevant buffer rates are assessed to address different risks, the Minister for Business may decide whether the buffer rates are cumulative in the calculation of their systemic buffer, cf. Section 125 a, paragraph 6.

Paragraph 4. The Minister for Business assesses at least every second year whether a systemic buffer rate set pursuant to paragraph 1 or 2 remains justified and re-establishes the buffer rate if necessary. The Minister for Business publishes a notice on the re-establishment of a systemic buffer rate on the Ministry of Business's website.

Paragraph 5. The Minister for Business sets detailed rules on which subgroups of exposures the systemic buffer may apply to, on the calculation of the systemic buffer, and on the publication of information about the systemic buffer.

Section 125 i. (Repealed)

Section 126. (Repealed)

Section 126 a. The board of directors and management of an investment management company must ensure that the company has a sufficient capital base and has internal procedures for risk measurement and risk management for the ongoing assessment and maintenance of a capital base of a size, type, and distribution that is appropriate to cover the company's risks. Based on the assessment pursuant to the first sentence, the board of directors and management shall calculate the company's individual solvency requirement. The solvency requirement is calculated as the sufficient capital base. The solvency requirement may not be less than the minimum capital requirement in paragraph 2 or the requirements for the capital base in paragraph 5.

Paragraph 2. The capital base in an investment management company must at least amount to

730,000 euros (minimum capital requirement) for investment management companies that are members of a regulated market or have permission to store and manage the instruments mentioned in Annex 2, No. 3, in the Act on Securities Firms and Investment Services and Activities, including to become connected to a securities central or a clearing central, where the company participates in clearing and settlement, cf. however paragraph 3, and
125,000 euros (minimum capital requirement) for other investment management companies, cf. however paragraph 3.

Paragraph 3. An investment management company must regardless of the requirement in paragraph 2 include a supplement to the minimum capital requirement of 0.02 percent of the part of the company's portfolio, cf. paragraph 6, that exceeds 250 million euros. The minimum capital requirement and the supplement must together amount to a maximum of 10 million euros. Investment management companies must annually adjust the supplementary capital based on the audited annual report. The adjustment must be made before June 1 of the following year.

Paragraph 4. The Financial Supervisory Authority may allow up to 50 percent of the supplement pursuant to paragraph 3 to be covered by a guarantee from a credit institution or an insurance company. The credit institution or insurance company must have its statutory seat in a country within the European Union, in a country with which the Union has concluded an agreement in the financial area, or in a country with which the Union has not concluded such an agreement but which has supervisory rules corresponding to the rules in the European Union.

Paragraph 5. An investment management company must regardless of the requirements in paragraphs 2 and 3 have a capital base corresponding to at least one quarter of the previous year's fixed costs. The Financial Supervisory Authority may adjust this requirement if there have been changes in the company's business since the previous year that the Financial Supervisory Authority considers significant. If a company has not been in operation for 1 year, it must have a capital base corresponding to at least one quarter of the fixed costs stated in the business plan for the first year of operation, unless this plan is required to be amended by the Financial Supervisory Authority.

Paragraph 6. The portfolio of the investment management company, cf. paragraph 3, includes the assets of UCITS that the investment management company is approved to manage, and the assets of alternative investment funds that the investment management company has permission to manage. Portfolios that the investment management company has been assigned to manage pursuant to the rules on delegation shall not be included in the company's portfolio, cf. paragraph 3.

Paragraph 7. The Financial Supervisory Authority may set requirements for a higher capital base than the requirements stated in paragraphs 1-3 and 5.

Paragraph 8. The Financial Supervisory Authority may order the investment management company to write down assets etc. for the purpose of calculating the capital base.

Paragraph 9. The capital base for investment management companies is calculated in accordance with Articles 25-88 of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions and rules issued pursuant to Articles 25-88.

Sections 126 b-127. (Repealed)

Section 128. The Financial Supervisory Authority sets rules for the calculation of the capital base, including own core capital, hybrid core capital, and supplementary capital for the top parent company in Denmark and the group, insofar as these are covered by Section 170, paragraphs 1, 3, and 4.

Paragraph 2. The Financial Supervisory Authority may for credit institutions and mortgage credit institutions, and for financial holding companies where consolidation is carried out in accordance with Article 11, paragraphs 1 and 2, of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions, set rules for the calculation of the capital base, including own core capital, hybrid core capital, and supplementary capital, while observing the possibilities thereof in Article 49 of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions.

Section 128 a. The Financial Supervisory Authority may set rules on the issuance of debt instruments with terms for conversion into share, partnership, guarantee, or membership capital by financial companies and financial holding companies, including to what extent Chapter 10 of the Companies Act applies.

Section 128 b. A credit institution's shareholdings acquired for trust funds where customers bear the risk do not enter into the calculation of deductions in the capital base. A credit institution's shareholdings acquired for trust funds where customers do not bear the risk must be deducted in the calculation of the capital base pursuant to rules on deductions for shareholdings in Part 2 of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions.

Sections 129-139. (Repealed)

Section 140. In mortgage credit institutions, the requirement for the capital base in series with repayment obligations, which were opened before January 1, 1973, can be fulfilled with the part of the series reserve funds in mortgage credit institutions in series with repayment obligations that corresponds to the requirement in Section 124, paragraph 8.

Paragraph 2. In series with repayment obligations opened before January 1, 1973, series reserve funds in mortgage credit institutions in series where there is no repayment obligation to borrowers, as well as the part of the series reserve funds in series with repayment obligations, cf. Section 25 in the Act on Mortgage Loans and Mortgage Bonds etc., which cannot be paid out, and which are not used to cover the requirement for the series' capital base, can be included in the fulfillment of the requirement for the capital base for mortgage credit institutions otherwise.

Section 141. (Repealed)

Section 142. The Financial Supervisory Authority may set rules for the calculation of the total risk exposure for the top parent company in Denmark and the group, insofar as these are covered by the requirements in Section 170, paragraphs 1, 3, and 4.

Section 143. The Financial Supervisory Authority sets detailed rules for

calculations pursuant to Section 124, paragraphs 1 and 2, and Section 126 a, paragraph 1,
reporting of the solvency requirement for financial companies and groups covered by Sections 171-174, reporting of the requirement for the minimum basic capital, reporting of the total risk exposure, the capital base requirement, and the capital base for the top parent company in Denmark and the group, insofar as these are covered by Section 170, paragraphs 1, 3, and 4, and reporting of the capital base for investment management companies and for the top parent company in Denmark and the group, insofar as these are covered by Section 170, paragraph 2,
calculation of share purchase and share sale transactions etc.,
calculation of investment management companies' fixed costs and the fixed costs for the top parent company in Denmark and the group, insofar as these are covered by Section 170, paragraphs 2 and 3, as well as the conditions for which the Financial Supervisory Authority may adjust the requirement that a company must have a capital base of at least one quarter of the previous year's fixed costs in case of significant changes in the company's business,
transitional rules for groups where the top parent company in Denmark and the group, insofar as these are covered by Section 170, paragraphs 1, 3, and 4, use an internal method for calculating the total risk exposure to credit risk, cf. Section 143, paragraph 3, and
benchmarking of calculations of expected credit losses for companies using internal methods for calculating risk-weighted exposures for credit risk, and for significant companies using the standard method, and benchmarking for companies with permission to use internal methods for calculating risk-weighted exposures or capital base requirements and companies using the standard method for market risk for calculating risk-weighted exposures or capital base requirements, and where the extent of the company's on-balance sheet and off-balance sheet activities exposed to market risk is equal to or over 500 million euros, cf. Article 325 a, paragraph 1, letter b, of the Regulation of the European Parliament and of the Council on prudential requirements for credit institutions and investment firms.

Paragraph 2. The Financial Supervisory Authority may set detailed rules for the disclosure obligations of credit institutions, mortgage credit institutions, and investment management companies towards customers regarding their rating.

Section 143 a. The Financial Supervisory Authority may decide on more frequent publication of the information in Part 8 of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions than set in Articles 433-433c in the regulation. The Financial Supervisory Authority may set a deadline for when companies covered by Articles 433a and 433c in Regulation (EU) No 575/2013 of the European Parliament and of the Council must send information to the European Banking Authority, and set requirements for the use of another medium for publication than the European Banking Authority's website or the annual report.

Paragraph 2. The Financial Supervisory Authority may require parent companies or institutions in a group to publish a description of the group's legal and organizational structure and management. The publication may be made by reference to already published material.

Special rules on forced redemption for credit institutions

Section 144. In a credit institution that does not meet the capital base requirement in Article 92, paragraph 1, letter c, or the minimum capital requirement in Article 93 of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions, and where the Financial Supervisory Authority has set a deadline pursuant to Section 225, paragraphs 1 and 4, the board of directors may, upon request from a shareholder owning 70 percent or more of the shares in the credit institution, make a decision with an ordinary majority to redeem the other shareholders' shares in the credit institution. The same applies in cases where the request is made by a shareholder who, after a capital injection that is part of a reconstruction plan, comes to own 70 percent or more of the shares in the credit institution, even if the credit institution again meets the capital base requirement in Article 92, paragraph 1, letter c, or the minimum capital requirement in Article 93 of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions as a result of the capital injection. Own shareholdings and subsidiary shareholdings in the parent company are not included in the calculation of votes and ownership shares. The board's decision on forced redemption of shares must be approved by the Financial Supervisory Authority. Redemption of shares must be carried out no later than 30 days after the request pursuant to the first sentence.

Paragraph 2. The board must simultaneously invite the shareholders to an informational meeting regarding the forced redemption. This meeting must be held no later than eight days after the decision, and the necessary costs thereof are borne by the party whose request the forced redemption is made.

Paragraph 3. The minority shareholders covered by a decision on redemption of shares, cf. paragraph 1, must be requested in writing to transfer their shares to the shareholder mentioned in paragraph 1 no later than 3 days after receipt of the request. The request must contain information on the terms of the redemption and the valuation basis for the redemption price. The value of the credit institution's shares is determined from the shares' trading value by the auditor chosen by the credit institution's general meeting.

Paragraph 4. The purchase price must be paid or deposited no later than 3 days after the redemption is claimed against the shareholders. This also applies to the purchase price for shares called in via the Business Authority's IT system, cf. the rules thereon in the Companies Act.

Paragraph 5. The redemption and transfer of shares are considered final at the time of payment or deposit of the purchase price, cf. paragraph 4. In case of disagreement on the price determination of the shares, this is subsequently decided upon request by one of the parties by two auditors appointed by the Association of State Authorized Public Accountants. The decision may be brought before the court no later than 2 weeks after receipt of the auditors' decision.

Chapter 11
Placement of Funds and Liquidity
Rules for credit and mortgage institutions and investment management companies regarding the placement of funds and liquidity

Section 145. A credit institution, a mortgage credit institution, or a financial holding company covered by Section 175 g, which intends directly or indirectly to acquire a shareholding of 15 percent or more of the acquiring company's adjusted capital base, must apply in writing to the Financial Supervisory Authority for permission prior to the acquisition.

Paragraph 2. If the shareholding, cf. paragraph 1, amounts to 15 percent or more of the adjusted capital base based on the parent company's consolidated calculation for the group, and the parent company has its seat in the European Union, the parent company must in addition to paragraph 2 notify the supervisory authority in the parent company's home country.

Paragraph 3. Financial holding companies covered by Section 175 g calculate the shareholding in relation to the capital base, cf. paragraph 1, based on the company's consolidated calculation for the group.

Section 145 a. The Financial Supervisory Authority confirms in writing and no later than after 10 working days the receipt of the application, cf. Section 145, paragraph 1. The same applies upon receipt of material, cf. paragraph 5. Simultaneously with the confirmation of receipt of the application, the Financial Supervisory Authority notifies the company of the date when the assessment period expires.

Paragraph 2. The Financial Supervisory Authority has 60 working days from the time of the written confirmation of receipt of the application, cf. paragraph 1, and receipt of all documents required to be attached to the application, to carry out the assessment mentioned in Section 145 b, cf. however paragraph 3.

Paragraph 3. The assessment period pursuant to paragraph 2 expires, however, no earlier than simultaneously with the assessment period pursuant to Section 61, paragraph 3, if the acquisition is covered by both Section 61, paragraph 1, and Section 145, paragraph 1.

Paragraph 4. The assessment period is suspended until the conclusion of the case handling under Section 175 g or a corresponding conclusion of the handling in another Member State within the European Union, where such handling is a prerequisite for the acquisition.

Paragraph 5. The Financial Supervisory Authority may, until the 50th working day of the assessment period, request further information necessary for the assessment. The request must be made in writing. The first time such a request is made, the assessment period is interrupted for the period between the time of the request and the receipt of the answer thereto. However, the interruption may not exceed 20 working days, cf. however Paragraph 6.

Paragraph 6. The Financial Supervisory Authority may extend the interruption of the assessment period as mentioned in Paragraph 5 by up to 10 working days if

the target company is located in or subject to the regulatory framework in a country outside the European Union, which the Union has not concluded an agreement with in the financial area, or
the Financial Supervisory Authority exercises supervision over the applicant in accordance with the Money Laundering Act.

Paragraph 7. If the Financial Supervisory Authority rejects an application for approval of a contemplated acquisition, this must be justified in writing and communicated to the contemplated acquirer within 2 working days after the decision thereof. The notification must be made within the assessment period, cf. Paragraph 2.

Paragraph 8. If the Financial Supervisory Authority does not issue a written rejection of the application for the contemplated acquisition during the assessment period, the acquisition is deemed approved.

Paragraph 9. The Financial Supervisory Authority may, upon approval of an acquisition, set a deadline for the implementation thereof. The Financial Supervisory Authority may extend such a deadline.

Section 145 b. The Financial Supervisory Authority must, in connection with its assessment of an application received pursuant to Section 145, Paragraph 1, ensure consideration of the need for sound and prudent management of the business, in particular the risks to which the business is or may become exposed after the contemplated acquisition in relation to the following criteria:

The business will be able to comply with and continue to comply with the requirements in this Act, Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions or other relevant regulation.
There is no justified suspicion that the acquisition will involve money laundering or the financing of terrorism, or that the acquisition will increase the risk thereof.

Paragraph 2. The Financial Supervisory Authority shall reject an application if the assessment pursuant to Paragraph 1 indicates this, or if the business has not submitted sufficient information upon request thereof.

Paragraph 3. The Financial Supervisory Authority's assessment pursuant to Paragraph 1 must be made, regardless of whether applications have been submitted from several businesses pursuant to Section 145, Paragraph 1, in relation to the same target business.

Paragraph 4. The Financial Supervisory Authority is not obliged to carry out an assessment pursuant to Paragraph 1 if the acquisition takes place between entities covered by Article 113, Paragraph 6 or 7, of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions. If the Financial Supervisory Authority does not carry out an assessment in such cases, the Financial Supervisory Authority must notify the applicant thereof.

Section 145 c. A credit institution, a mortgage credit institution or a financial holding company, which is covered by Section 175 g, and which contemplates directly or indirectly to dispose of a capital share, cf. Section 145, Paragraph 1, must notify the Financial Supervisory Authority in writing of the disposal before the disposal, stating the size of the contemplated future capital share.

Section 145 d. The Financial Supervisory Authority may revoke the voting rights attached to capital shares acquired without prior application pursuant to Section 145, Paragraph 1. The capital shares are assigned full voting rights again if the Financial Supervisory Authority grants permission for the acquisition.

Paragraph 2. The Financial Supervisory Authority must revoke the voting rights attached to capital shares acquired in violation of the Financial Supervisory Authority's rejection pursuant to Section 145 a, Paragraph 7.

Paragraph 3. The Financial Supervisory Authority must inform the relevant target business when the Financial Supervisory Authority has revoked the voting rights attached to capital shares in the business pursuant to Paragraph 1 or 2.

Paragraph 4. If the Financial Supervisory Authority has revoked the voting rights pursuant to Paragraph 1, the capital share may not be included in the calculation of the voting capital represented at a general meeting.

Section 146. Credit institutions, mortgage credit institutions and investment management companies' capital shares in other businesses must not exceed 100% of the capital base. Capital shares acquired for pooled funds are not included in the calculation according to the first sentence.

Paragraph 2. Share purchase and share sale transactions must be included in the calculation of the limit according to Paragraph 1.

Paragraph 3. Capital shares that must be deducted from the capital base, and capital shares in businesses that are fully included in the consolidation, are not included in the limit according to Paragraph 1.

Paragraph 4. The Financial Supervisory Authority may grant exemption from the limit in Paragraph 1.

Section 145 a. Securities and derivative financial instruments acquired for pooled funds may, in connection with the calculation of the credit institution's capital requirements, be regarded as hedged by the pooled fund deposit contract entered into with the customer, unless the credit institution has assumed an unhedged position in the placement of pooled funds. The risk associated with an unhedged position must be included in the calculation of the capital base requirement in Article 92 of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions according to the rules for positions in the trading book. At the same time, the obligations corresponding to the unhedged position must be included in the calculation of the capital base requirement in Article 92 of the European Parliament and of the Council Regulation (EU) No 575/2013 on prudential requirements for credit institutions according to the rules for items outside the trading book in the European Parliament and of the Council Regulation (EU) No 575/2013 on prudential requirements for credit institutions.

April 16, 2026. 56 No. 432.

Section 147. Credit institutions, mortgage credit institutions and investment management companies may not own real estate or have capital shares in real estate companies for more than 20% of the capital base. For credit institutions and mortgage credit institutions' real estate, loans and guarantees to subsidiary companies that are real estate companies are included. Properties that a credit institution, a mortgage credit institution or an investment management company has acquired to operate business or ancillary business therefrom are, however, not covered by the provision.

Paragraph 2. The Financial Supervisory Authority may grant exemption from the provision in Paragraph 1, first sentence.

Section 147 a. The Minister for Business Affairs may set rules on a liquidity coverage requirement for credit institutions and mortgage credit institutions.

Section 148. (Repealed)

Special rules for credit institutions on the placement of funds and liquidity

Section 149. A credit institution must not have residual risks on leasing agreements, cf. Paragraph 2, if the value together with real estate and capital shares covered by Section 147 amounts to more than 25% of the capital base.

Paragraph 2. The residual risk on a leasing agreement is understood as the difference between the purchase price of the leasing asset and the present value of the leasing tenant's obligation to the credit institution under the leasing agreement.

Paragraph 3. If a third party is liable for part of the residual risk, this part may be deducted when calculating the residual risk. The third party's obligation must be added to the relevant exposure in accordance with Article 395, Paragraph 1, of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions.

Paragraph 4. The Financial Supervisory Authority may grant exemption from Paragraph 1.

Section 150. Loans for subscription of share, partnership or guarantee capital in a credit institution beyond 5% of the total share, partnership or guarantee capital can only be granted if security is provided for the excess amount. The security must be at least of the same character as particularly secure parts, cf. Article 400 in Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions.

Section 151. A savings bank must not acquire or receive as pledge its own guarantee certificates.

Paragraph 2. A cooperative bank must not acquire or receive as pledge its own partnership certificates.

Section 152. The Financial Supervisory Authority may set a specific liquidity requirement for a credit institution or a group of credit institutions with similar risk profiles, which takes into account special liquidity risks in the credit institution or group of credit institutions.

Paragraph 2. The Financial Supervisory Authority may set detailed rules on credit institutions' strategies and systems for measuring and managing liquidity risks as well as credit institutions' preparation of stress tests and contingency plans in relation to liquidity risks.

Section 152 a. Credit institutions that have been permitted to issue covered bonds must establish and maintain a group of assets that must be kept separate from the credit institution's other assets. All payment obligations regarding covered bonds must be covered by payment claims relating to the covering assets in the individual registers. In calculating the payment obligations relating to the issued covered bonds, payment obligations in the form of principal and interest, payment obligations in accordance with financial instruments used to hedge risks between the covering assets and issued covered bonds, and the expected costs associated with maintenance and management upon dissolution of the administration estate, cf. Section 247 a, Paragraph 1, must be included. In calculating the payment claims relating to the covering assets, payment claims in the form of principal and interest on loans, payment claims in accordance with financial instruments used to hedge risks between the covering assets and issued covered bonds, and payment claims in accordance with other assets that lie as security for covered bonds must be included.

Paragraph 2. The nominal value of the total principal on the covering assets must correspond to or exceed the total principal on the issued covered bonds. The nominal value of the total principal on the covering assets must be added with an overcollateralization of at least 2% of the outstanding covered bonds.

Paragraph 3. Financial instruments used to hedge risks between the covering assets and issued covered bonds must be measured according to the same method as the covering assets and the issued covered bonds, if the risks they hedge.

Paragraph 4. If the value of the assets mentioned in Paragraph 1 no longer corresponds to the value of the issued covered bonds or does not comply with the loan limits that were valid at the time the loan was granted, the credit institution must provide supplementary security to meet the requirement and notify the Financial Supervisory Authority thereof. The duty to provide supplementary security and the expenses thereof may not be imposed on the borrowers for loans issued in Denmark, if the falling property values have triggered the requirement for the supplementary security.

Paragraph 5. If the credit institution does not provide supplementary security pursuant to Paragraph 4, all bonds issued in the relevant register, cf. Section 152 g, Paragraph 1, lose the designation of covered bonds. If the bonds subsequently again meet the requirements for covered bonds, the Financial Supervisory Authority may permit the bonds to again be designated covered bonds.

Paragraph 6. Security provided in accordance with Paragraph 4 cannot be set aside pursuant to Section 70 or Section 72 in the Bankruptcy Act. However, set-aside may occur pursuant to the mentioned provisions if the security provision did not specifically appear as ordinary.

Section 152 b. Credit institutions that have been permitted to issue covered bonds may take loans for use to fulfill the duty to provide supplementary security, cf. Section 152 a, Paragraph 4, or to increase the overcollateralization in a register.

April 16, 2026. 57 No. 432.

Paragraph 2. It must appear from the loan agreement which register, cf. Section 152 g, Paragraph 1, the loan funds borrowed pursuant to Paragraph 1 can be attributed to.

Paragraph 3. Loan funds borrowed pursuant to Paragraph 1 must be placed in the asset types mentioned in Article 129, Paragraph 1, of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions. The assets must from the time the loan is taken be placed on a separate account, in a separate depot or otherwise marked as originating from the relevant loan.

Paragraph 4. For loans financed by the issuance of covered bonds, where the maturity of the bonds is shorter than the maturity of the underlying loans, it must appear from the bond terms, the prospectus or other offering material that the administrator in situations covered by Section 247 a and in accordance with the conditions in Section 247 h, Paragraph 4, can extend the bonds by 1 year. The nominal interest rate on the extended bonds is set to a variable reference rate plus up to 5 percentage points. It must also appear from the bond terms, the prospectus or other offering material that the administrator can redeem the bonds at par.

Paragraph 5. For loan agreements entered into after January 1, 2015, it must appear separately from the loan terms that the administrator can raise the interest rate due to changed financing conditions, cf. Paragraph 4.

Paragraph 6. If covered bonds are extended in accordance with Paragraph 4, the maturity of loans taken as extra security in accordance with Paragraph 1 must be extended corresponding to the maturity of the changed bonds.

Paragraph 7. The maturity of covered bonds must at the time of issuance be over 24 months.

Paragraph 8. The Minister for Business Affairs sets detailed rules on the extension of bonds in accordance with Paragraph 4, including on interest rate setting.

Section 152 c. A covered bond must not be issued with security in both real estate and ships.

Section 152 d. For loans secured by registered mortgage in real estate and granted on the basis of the issuance of covered bonds, the maturities and repayment profiles set in Sections 3 and 4 of the Act on Mortgage Loans and Mortgage Bonds etc. apply, cf. however Paragraph 2.

Paragraph 2. For loans secured by registered mortgage in real estate and granted on the basis of the issuance of covered bonds to properties covered by Section 5, Paragraph 1, of the Act on Mortgage Loans and Mortgage Bonds etc., Sections 3 and 4 of the Act on Mortgage Loans and Mortgage Bonds etc. do not apply if the loan limit does not exceed 75%.

Paragraph 3. Loans with mortgage in holiday homes that are not rented out commercially must at the time of registration in the register or at the time the loan is disbursed lie within 75% of the property's value.

Paragraph 4. Accessories covered by Section 38 in the Land Registration Act may be included in the valuation of the real estate.

Paragraph 5. Fittings installed in a commercial property for use in its operation may be included in the valuation. For agricultural properties, the livestock belonging to the property, insofar as the livestock is included in the continuous production, may furthermore be included in the valuation. When mortgaging agricultural properties, the value of livestock that is included in the continuous production may at most be included with 30% of the value of land and buildings.

Paragraph 6. Accessories in the form of pipes, cables, antennas etc., that connect two or more real estates and are a prerequisite for the operation of the properties, cf. Section 37 a in the Land Registration Act, may be included in the valuation of the real estates.

Section 152 e. Loans with mortgage in real estate granted on the basis of the issuance of covered bonds must be secured by a separate mortgage deed and must not be granted against security in the form of owner's mortgage deeds and indemnity deeds, cf. however Paragraph 2 and 3. It must appear from the mortgage deed that it can lie as security for a loan financed by the issuance of covered bonds.

Paragraph 2. Mortgage deeds in real estate that are registered before July 1, 2007, can lie as security for loans financed by the issuance of covered bonds.

Paragraph 3. The Financial Supervisory Authority may grant exemption from Paragraph 1 for loans granted to real estate located outside Denmark, the Faroe Islands and Greenland.

Section 152 f. For loans covered by Article 129, Paragraph 1, first paragraph, letter g, in Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions, the maturity may at most amount to 15 years at the loan's disbursement time.

Section 152 g. In credit institutions, registers must be kept over assets covered by Sections 152 a and 152 b and over financial instruments that meet the conditions in Paragraph 7. A credit institution can keep one or more registers. A register must not contain assets that have security in both real estate and ships.

Paragraph 2. For loans covered by Section 152 e, Paragraph 1, that must be entered in a register, it applies that the loan limit must be met at the time the loan is to be entered in the register or at the time the loan has been disbursed. If the loan limit has been met at the loan's disbursement time and is exceeded at the registration time, security must be provided in relation to the loan limit for the relevant loan upon registration. The security cannot be provided in the form of other loans where the loan limit has been exceeded.

Paragraph 3. Paragraph 2, first sentence, does not apply to

registration or disbursement of a loan in a register where the loan is granted for redemption of a mortgage loan granted by a mortgage credit institution, or where the loan is granted for redemption of a loan that is included in a register in another credit institution with permission to issue covered bonds, or
loans covered by the rules in Sections 16 b-16 g, where the loan is granted for redemption of a mortgage loan granted by a mortgage credit institution, or where the loan is granted for redemption of a loan that is included in a register in a credit institution with permission to issue covered bonds, and where the loan is transferred to the receiving credit institution at the latest 6 months after disbursement.

Paragraph 4. Loans covered by Paragraph 3 must at the time the loan is to be entered in the register or disbursed, at most April 16, 2026. 58 No. 432.

constitute an amount corresponding to the redemption amount and the costs associated with the redemption and provision of loans.

Subsection 5. For loans covered by subsection 3 or Section 7, subsection 2, of the Act on Mortgage Loans and Mortgage Bonds, the issuing institution is obliged to provide the receiving institution with information on whether the loan to be redeemed is included in a register in the issuing credit institution, and information on the already passed interest-only period for the relevant loan, if the borrower has consented to this.

Subsection 6. Supplementary security must be registered separately and individualized in relation to the other assets that serve as security for the issued covered bonds.

Subsection 7. Financial instruments may only be included in a register of assets if they are used to hedge risks between assets in the register on the one hand and the issued covered bonds on the other, and where it is determined in the agreement on the financial instrument that the credit institution's reconstruction proceedings, bankruptcy, or failure to comply with the duty to provide supplementary security under Section 152 a, subsection 4, does not constitute a breach of contract.

Subsection 8. Assets, including financial instruments, in a register serve to satisfy the holders of the covered bonds and the counterparties with whom the financial instruments have been entered into, and subsequently to satisfy loans borrowed under Section 152 b, subsection 1.

Subsection 9. The credit institution reports to the Danish Financial Supervisory Authority which assets etc. are included in the register. The Danish Financial Supervisory Authority or the entity authorized by the Danish Financial Supervisory Authority to do so verifies the presence of these assets.

Subsection 10. Security provided to a register belonging to a credit institution that has permission to issue covered bonds, and which is provided by a financial counterparty to cover financial instruments, belongs to the register. The same applies to security provided by another part of the credit institution as a counterparty to the register, even if the register was part of the credit institution's business at the time the security was provided. Security under the first and second sentences may not be used by the register as a basis for the issuance of covered bonds.

Subsection 11. The register must at all times have a liquidity buffer composed of liquid assets that are available to cover outgoing net cash flows in connection with the register, which covers the total maximum outgoing net cash flows for the next 180 days.

Subsection 12. Liquid assets according to subsection 11 include assets that meet the conditions for Level 1, Level 2A, or Level 2B assets according to Commission Delegated Regulation (EU) No 2015/61 of 10 October 2014 supplementing Regulation (EU) No 575/2013 as regards liquidity coverage requirements for credit institutions, and which are valued in accordance with the aforementioned delegated regulation, and are not issued by the credit institution itself that issues the covered bonds, or by its parent company, unless this is a public entity that is not a credit institution, its subsidiaries, or other subsidiaries of the parent company.

Subsection 13. For bonds covered by the rules in Section 247 h, subsection 4, the calculation of the liquidity buffer requirement may be based on the final maturity date of the relevant bonds.

Section 152 h. The Danish Financial Supervisory Authority sets detailed rules on:

the valuation of the issued covered bonds and the ongoing calculation of the value of the assets in relation to the covered bonds,
the valuation of the assets that serve as security for the issuance of covered bonds,
under what conditions building loans may be granted for the new construction or reconstruction of ships,
the design, registration, and verification of the presence of the assets in the registers, cf. Section 152 g,
credit institutions' provision of loans financed by the issuance of covered bonds with mortgage in real estate in cases where there is no final registered mortgage deed, and to what extent alternative security must be provided, and if the security is provided in the form of a guarantee from a credit institution, to what extent this should not be included in the 15-percent limit or the 10-percent limit, cf. Article 129, subsection 1, point (c), and subsection 1a, of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms,
limiting risks in connection with the issuance of covered bonds, including interest rate risks, currency risks, and option risks, and meeting the requirement for a liquidity buffer,
reporting of supplementary security for covered bonds and compliance with the requirements for coverage and minimum over-coverage, and
credit institutions' publication and submission of information for use by investors in assessing the characteristics and risks of the issued covered bonds.

Sections 152 i-152 y. (Repealed)

Special rules for mortgage credit institutions regarding the placement of funds and liquidity

Section 153. The Danish Financial Supervisory Authority may set a specific liquidity requirement for a mortgage credit institution or a group of mortgage credit institutions with similar risk profiles, taking into account special liquidity risks in the mortgage credit institution or groups of mortgage credit institutions.

Section 154. Funds in series may not be deposited as hybrid core capital or subordinated loan capital in other series or in the mortgage credit institution generally.

Subsection 2. Funds in the mortgage credit institution generally may not be deposited in series as hybrid core capital or subordinated loan capital, unless at least an equivalent amount of hybrid core capital or subordinated loan capital has been raised in the mortgage credit institution generally.

Section 155. (Repealed)

16 April 2026. 59 No. 432.

Special rules for investment management companies regarding the placement of funds and liquidity

Section 156. (Repealed)

Section 157. Investment management companies may place the company's capital base in shares and bonds that are admitted to trading on a regulated market, as well as in units in UCITS, investment funds, and foreign investment institutions that correspond to investment funds, if the articles of association of the investment fund or the foreign investment institution contain the limitations set out in Sections 157 a and 157 b.

Section 157 a. The articles of association of an investment fund or a foreign investment institution covered by Section 157, subsection 1, first sentence, must contain provisions on:

That the investment fund or the foreign investment institution must redeem the investor's share of the assets with funds derived from the assets upon the investor's request.
That the divisions of the investment fund or the foreign investment institution may not provide guarantees for third parties or grant or borrow loans. However, the divisions of the investment fund or the foreign investment institution may borrow short-term loans up to a maximum of 10 percent of the assets, except for loans with investment purposes.
That the investment fund or the foreign investment institution may invest its assets in liquid funds, including currency, or in the financial instruments mentioned in Annex 2 to the Act on Securities Firms and Investment Services and Activities, in accordance with the requirements imposed on instruments and their issuers in Chapter 14 of the Act on Investment Funds etc.
Risk diversification, cf. Section 157 b.

Section 157 b. An investment fund or a foreign investment institution covered by Section 157, subsection 1, first sentence, must specify in its articles of association that the assets may be invested in accordance with the rules in subsection 2, 3, 4, or 5.

Subsection 2. The assets may be invested in accordance with Chapter 14 of the Act on Investment Funds etc.

Subsection 3. The assets may be invested in liquid funds, including currency or the instruments mentioned in Annex 2 to the Act on Securities Firms and Investment Services and Activities. At most 10 percent of the assets may be invested in financial instruments issued by the same issuer or issuers in the same group. The second sentence does not apply in the following cases:

Where the division invests in bonds issued by a country or an international institution of a public character, which one or more countries in the European Union or countries with which the Union has concluded an agreement in the financial field participates in, and which are approved by the Danish Financial Supervisory Authority, cf. Section 147, subsection 1, No. 4, of the Act on Investment Funds etc.
Where the division invests in the following types of bonds, provided that at most 30 percent of the assets are placed in bonds issued by a single issuer or issuers in the same group:
a) Treasury and ship credit bonds issued by Danmarks Skibskredit A/S, mortgage bonds issued by Danish mortgage credit institutions, and similar mortgage bonds issued by credit institutions that are approved by a country within the European Union or a country with which the Union has concluded an agreement in the financial field, when a competent authority has notified the bond issuances and issuers to the Commission. b) Special mortgage bonds (SDRO) and covered bonds (SDO) issued by Danish credit institutions, mortgage credit institutions, or Danmarks Skibskredit A/S, or similar covered bonds issued by similar credit institutions that are approved by a country within the European Union or a country with which the Union has concluded an agreement in the financial field, when a competent authority has notified the bond issuances and issuers to the Commission.

Subsection 4. The assets may be invested exclusively in money market instruments, with at most 30 percent of the assets placed in money market instruments issued by the same issuer or issuers in the same group, provided that the assets may be fully invested in money market instruments issued by a country or an international institution of a public character, which one or more countries in the European Union or countries with which the Union has concluded an agreement in the financial field participates in, and which are approved by the Danish Financial Supervisory Authority, cf. Section 147, subsection 1, No. 4, of the Act on Investment Funds etc.

Subsection 5. The assets may be invested in units in divisions of UCITS, investment funds, or foreign investment institutions, if the articles of association contain the limitations set out in Section 157 a, provided that at most 75 percent of the assets may be placed in units issued by a single division of these UCITS, investment funds, or foreign investment institutions.

Sections 158-169. (Repealed)

Chapter 12
Group Rules, Consolidation etc.
Group Rules

Section 170. In groups where the ultimate parent undertaking in Denmark is a financial holding company, the rules on the size of the capital base in Article 92, subsection 1, point (c), and subsection 2, point (c), of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions apply to both the top financial holding company and the group, subject to subsection 3. The parent undertaking ensures compliance with these provisions. In the calculation of the group's capital base, cf. Section 128, capital paid in by companies in the group that do not participate in the consolidated calculation for the group is deducted.

Subsection 2. The capital requirement rules for investment management companies in Section 126 a, subsections 2-6, in groups where the ultimate parent undertaking in Denmark is an investment management holding company or an investment management company, apply to the top financial holding company and the group. The first sentence applies only to investment management holding companies that do not have a subsidiary that is a credit institution, a mortgage credit institution, or a securities firm I. The parent undertaking ensures compliance with these provisions. In the calculation of the group's capital base, cf. Section 126 a, subsection 9, capital paid in by companies in the group that do not participate in the consolidated calculation for the group is deducted.

Subsection 3. Subsections 1 and 2 do not apply to the ultimate parent undertaking in Denmark that is part of a group where consolidation is carried out in accordance with Article 11, subsections 1 and 2, of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions.

Subsection 4. For groups where the ultimate parent undertaking in Denmark is a credit institution, a mortgage credit institution, an investment management holding company, or another financial holding company, where consolidation is carried out in accordance with Article 11, subsections 1 and 2, of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions, the rule in Article 92, subsection 1, point (c), and subsection 2, point (c), of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions applies to the parent undertaking. The first sentence applies only to investment management holding companies that have a subsidiary that is a credit institution, a mortgage credit institution, or a securities firm, which is covered by Article 4, subsection 1, No. 1, point (b), of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions, including as a result of a decision under Section 230 of the Act on Securities Firms and Investment Services and Activities.

Section 170 a. A credit institution, a mortgage credit institution, and a financial holding company must ensure that the arrangements, processes, and mechanisms required in Chapter 2, Section II, of the Directive of the European Parliament and of the Council on the taking up and pursuit of the business of credit institutions and on the prudential supervision of credit institutions and investment firms, which are implemented by this Act or regulations issued pursuant to this Act, are implemented in a consistent and well-integrated manner in subsidiaries that are not covered by the directive. The company must also ensure that the subsidiary can provide relevant data and information for supervisory purposes. The first sentence does not apply if this conflicts with the legislation of the third country where the subsidiary is established.

Section 170 b. The ultimate parent undertaking in Denmark and the group of a credit institution or a mortgage credit institution may calculate the total risk exposure using internal methods, if the parent undertaking is covered by Section 170, subsections 1, 3, and 4. The use of internal methods requires permission from the Danish Financial Supervisory Authority.

Subsection 2. Credit institutions and mortgage credit institutions calculate their total risk exposure amount without a floor in accordance with Article 92, subsection 4, of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions, when the credit institution's or mortgage credit institution's ultimate parent undertaking in Denmark calculates the total risk exposure using Article 92, subsection 3, of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions.

Section 171. In groups where the parent undertaking is a credit institution or a credit institution holding company, Section 124, subsections 1-4 and 7, and Sections 146, 147, 149, 150, 152, and 182 apply to the group. The calculation of the capital requirements in Section 124, subsections 1-4 and 7, shall be carried out in accordance with Part Two of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions and to the extent and in the manner prescribed in Part One, Title II, Chapter 2, Section 2 and 3, of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions. The parent undertaking ensures compliance with these provisions. In the calculation of the group's capital base, capital paid in by companies in the group that do not participate in the consolidated calculation for the group is deducted.

Section 172. In groups where the parent undertaking is a mortgage credit institution or a mortgage credit institution holding company, Section 124, subsections 1-4 and 7, and Sections 146-147 and 182 additionally apply to the group. The calculation of the capital requirements in Section 124, subsections 1-4 and 7, shall be carried out in accordance with Part Two of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions and to the extent and in the manner prescribed in Part One, Title II, Chapter 2, Section 2 and 3, of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions. The parent undertaking ensures compliance with these provisions. In the calculation of the group's capital base, capital paid in by companies in the group that do not participate in the consolidated calculation for the group is deducted.

Section 173. (Repealed)

Section 174. In groups where the ultimate parent undertaking in Denmark is an investment management holding company or an investment management company, Section 126 a, subsections 1, 7, and 8, Sections 146 and 147, and Article 395 of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions apply to the group. The first sentence applies only to investment management holding companies that do not have a subsidiary that is a credit institution, a mortgage credit institution, or a securities firm I. The parent undertaking ensures compliance with these provisions. In the calculation of the group's capital base, cf. Section 128, capital paid in by companies in the group that do not participate in the consolidated calculation for the group is deducted.

Subsection 2. A consolidated calculation must be carried out in accordance with the rules in subsection 1 and Section 170, subsection 2, between an investment management company that is itself a subsidiary of a credit institution, a mortgage credit institution, an investment management company, or a financial holding company, and the investment management company's subsidiary that is

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an administration company that is not subject to legislation in a country within the European Union or in a country with which the Union has concluded an agreement in the financial area.

Subsection 3. The Financial Supervisory Authority may determine that subsection 1 and Section 170, subsection 2, apply in other cases where investment management companies alone or jointly have such a direct or indirect connection to a company that it is considered necessary to apply the aforementioned rules.

Section 175. The Financial Supervisory Authority may determine that Article 395 of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions applies to groups where the top parent company in Denmark is a financial holding company that is not a securities brokerage or investment management holding company, and which does not form part of a group where consolidation is carried out in accordance with Article 11, subsections 1 and 2, of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions.

Section 175 a. Groups where the top parent company in Denmark is a financial holding company or a financial company shall report once a year all exposures, cf. Section 5, subsection 1, item 14, that amount to more than 10 percent of the group's capital base.

Subsection 2. The Financial Supervisory Authority sets detailed rules for reporting pursuant to subsection 1.

Subsection 3. Subsection 1 and rules issued pursuant to subsection 2 do not apply to the top parent company in Denmark that forms part of a group where consolidation is carried out in accordance with Article 11, subsections 1 and 2, of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions.

Sections 175 b-175 e. (Repealed)

Special rules for groups with parent company in a country outside the European Union

Section 175 f. A credit institution or mortgage credit institution shall appoint a common intermediate parent company within the European Union if

the company is part of a group whose parent company is located outside the European Union and outside a country with which the Union has concluded an agreement in the financial area,
the group has two or more credit institutions, mortgage credit institutions or securities brokerage companies located within the European Union or in a country with which the Union has concluded an agreement in the financial area, and
the group has assets with a total value of 40 billion euros or more in the European Union or in a country with which the Union has concluded an agreement in the financial area.

Subsection 2. The Financial Supervisory Authority may grant permission for the company to appoint two intermediate parent companies within the European Union if

the parent company of the group referred to in subsection 1, item 1, is subject to separation of activities in the third country where the company is located, or
the competent resolution authority for the intermediate parent company has assessed that resolution would be more effective with two intermediate parent companies in the European Union.

Subsection 3. An intermediate parent company must have permission as a credit institution or mortgage credit institution or be an approved financial holding company or mixed financial holding company, cf. however subsection 4.

Subsection 4. A securities brokerage company or an investment firm that has permission to provide or perform investment services and activities covered by Annex I, Section A, items 3 or 6, of the Act on Securities Brokerage Companies and Investment Services and Activities may be appointed as an intermediate parent company if the intermediate parent company is appointed pursuant to subsection 2, item 1.

Section 175 g. A parent company that is a financial holding company and which in the group is the top parent company located in Denmark must be approved by the Financial Supervisory Authority and the consolidating supervisory authority, where the consolidating supervisory authority is different from the Financial Supervisory Authority, cf. subsection 8, cf. however subsection 4. A parent company that is a financial holding company and which in the group is the top parent company located in the Union must be approved by the Financial Supervisory Authority as the consolidating supervisory authority and the competent authority in the member state where the holding company is located, cf. subsection 8. Other financial holding companies must be approved when they are covered by this Act or Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions at the level of subsidiary consolidation, or when they are appointed as responsible for ensuring the group's compliance with supervisory requirements at consolidated level as mentioned in subsection 4, item 3.

Subsection 2. Approval is granted to a financial holding company if the following conditions are met:

The internal arrangements and the distribution of tasks within the group are appropriate with a view to meeting the requirements of this Act and Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions at consolidated or subsidiary consolidated level, and are in particular sufficient to

a) coordinate the financial holding company's subsidiaries, including if necessary through a suitable distribution of tasks among credit institutions that are subsidiaries,

b) prevent or handle conflicts internally in the group and

c) enforce the group's policies set by the financial holding company throughout the group.

The organizational structure of the group in which the financial holding company is included does not prevent effective supervision of credit institutions that are subsidiaries or parent institutions, as regards the individual, consolidated and possibly subsidiary consolidated obligations they are subject to. In this assessment, account is taken in particular of

a) the position of the financial holding company in a group with several levels,

b) the ownership structure and

c) the role the financial holding company has in the group.

The criteria regarding shareholders and company participants in credit institutions in Section 14, subsection 2, and Sections 61 a and 64 are met.

Subsection 3. If the conditions in subsection 2 are not met, the financial holding company is subject to appropriate supervisory measures, which may include:

Suspension of the exercise of voting rights attached to the shares of the financial holding company in credit institutions that are subsidiaries.
Prohibition addressed to the financial holding company or members of the management body.
Issuance of instructions or guidelines addressed to the financial holding company to transfer the capital interests in credit institutions that are subsidiaries to its shareholders.
Appointment on an interim basis of another financial holding company or another institution within the same group as responsible for ensuring compliance with the requirements of this Act and Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions at consolidated level.
Restriction of or prohibition on distributions or interest payments to shareholders.
Requirement that financial holding companies divest or limit capital shares in credit institutions or other entities in the financial sector.
Requirement that financial holding companies submit a plan to immediately comply with the conditions in subsection 2 anew.

Subsection 4. The financial holding company or the mixed financial holding company may apply for exemption from approval pursuant to subsection 1, which is granted if the following conditions are met:

The main activity of the financial holding company consists of acquiring capital shares in subsidiaries.
The financial holding company is not designated as a resolution entity in accordance with the resolution strategy established by the relevant resolution authority.
A credit institution that is a subsidiary, or a financial holding company or a mixed financial holding company that is a subsidiary and approved in accordance with this provision, is designated as responsible for ensuring the group's compliance with supervisory requirements at consolidated level and has all the necessary resources and legal authority to fulfill these obligations in an effective manner.
The financial holding company does not participate in managerial, operational or financial decisions that affect the group or its subsidiaries that are credit institutions or financing institutions.
There are no obstacles to effective supervision of the group at consolidated level.

Subsection 5. If the conditions in subsection 4 are no longer met, the financial holding company must apply for approval.

Subsection 6. As part of the application for approval pursuant to subsection 1, financial holding companies must inform the Financial Supervisory Authority and the consolidating supervisory authority, if it is not the same authority, of the following:

The organizational structure of the group in which the financial holding company is included, with clear indication of its subsidiaries and any parent companies as well as the location and type of activity each entity carries out in the group.
Information about the nomination of at least two persons who carry out the actual management of the financial holding company and compliance with the requirements in Section 64 regarding qualifications for a member of the board or management.
Information about compliance with the criteria in Section 14, subsection 2, and Section 61 a regarding shareholders and company participants, if the financial holding company has a mortgage credit institution or credit institution as a subsidiary.
The internal organization and distribution of tasks within the group.
All other information that the Financial Supervisory Authority or the consolidating supervisory authority finds necessary to carry out assessments in accordance with subsections 2 and 4.

Subsection 7. The Financial Supervisory Authority continuously monitors as the consolidating supervisory authority compliance with the conditions referred to in subsection 2 or 4. The Financial Supervisory Authority shares relevant information connected therewith with the competent authority in the member state where the financial holding company is located.

Subsection 8. If the Financial Supervisory Authority as the consolidating supervisory authority is different from the competent authority in the member state where the financial holding company is located, a joint decision on approval or exemption from approval, cf. subsections 2, 4 and 15, and on the supervisory measures in subsection 3 and 5 is taken. For this purpose, the Financial Supervisory Authority as the consolidating supervisory authority prepares an assessment of relevant matters referred to in subsections 2-4, 7 and 15, and sends this assessment to the competent authority.

Subsection 9. The Financial Supervisory Authority and other supervisory authorities must, within 2 months after the Financial Supervisory Authority has made and sent its assessment mentioned in subsection 8, reach a joint decision, cf. however subsection 13. If a joint decision is reached, the Financial Supervisory Authority as the consolidating supervisory authority notifies the decision to the applicant.

Subsection 10. If no joint decision is reached within 2 months, the Financial Supervisory Authority refers the matter to the European Banking Authority, which makes a decision within 1 month after receipt of the referral. The Financial Supervisory Authority as the consolidating supervisory authority notifies this decision to the applicant.

Subsection 11. After the expiry of the 2-month period, cf. subsection 9, or after a joint decision has been made, the matter can no longer be referred to the European Banking Authority.

Subsection 12. If a financial holding company cannot be approved, or exempted from approval, cf. subsection 4, the Financial Supervisory Authority as the consolidating supervisory authority notifies the applicant of the reasons therefor. The reasons must be communicated to the applicant no later than 4 months after the supervisory authority's receipt of all the information necessary to take a position on the application for approval.

Subsection 13. However, a decision must in all cases be made to grant or refuse approval within a period of 6 months after receipt of the application.

Subsection 14. Subsections 1-13 do not apply to investment management holding companies, cf. Section 5, subsection 1, item 12.

Subsection 15. The Financial Supervisory Authority and the consolidating supervisory authority, where the consolidating supervisory authority is different from the Financial Supervisory Authority, may regardless of subsection 4 grant permission for financial holding companies or mixed financial holding companies, which are exempted from approval, cf. subsection 4, to be excluded from consolidation if the following conditions are met:

The exclusion does not affect the effectiveness of supervision of the credit institution that is a subsidiary or of the group.
The financial holding company or the mixed financial holding company has no share exposure other than the share exposure in the credit institution that is a subsidiary or in the intermediate financial parent holding company or the intermediate mixed financial holding company that controls the credit institution that is a subsidiary.
The financial holding company or the mixed financial holding company does not use gearing to a significant extent and has no exposures that do not relate to its ownership of the credit institution that is a subsidiary, or of the intermediate financial parent holding company or the intermediate mixed financial holding company that controls the credit institution that is a subsidiary.

Consolidation

Section 176. If an investment management company or a financial holding company alone or together with other companies in the group holds capital interests in a credit or financing institution that is not a subsidiary, and the credit or financing institution is operated jointly with other companies that do not form part of the group, a pro rata consolidation of the company must be carried out in accordance with Sections 170 and 174 in relation to the group companies' share of equity and profit in the company in which the capital interest is held.

Subsection 2. If the investment management company's or the financial holding company's responsibility for the company is not limited to the shareholding or voting rights, full consolidation must be carried out in accordance with Sections 170 and 174.

Subsection 3. Subsections 1 and 2 do not apply to the top parent company in Denmark that forms part of a group where consolidation is carried out in accordance with Article 11, subsections 1 and 2, of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions.

Section 177. Insurance companies and insurance companies' subsidiaries and companies temporarily operated by financial companies shall not be included in the consolidation in accordance with Sections 170 and 174. The Financial Supervisory Authority may, however, determine that these companies must be included.

Subsection 2. Credit institutions, mortgage credit institutions or financing institutions that are subsidiaries of insurance companies must be included in the consolidation in accordance with Section 170 if the top parent company in Denmark is an investment management holding company.

Section 177 a. In groups where the top parent company is located in Denmark, and where the parent company is a credit institution, a mortgage credit institution, a mixed holding company or a financial holding company that has at least one subsidiary that is a credit institution or a mortgage credit institution, Sections 243 a and 243 c apply.

Subsection 2. If a parent company as mentioned in subsection 1 meets the conditions for the Financial Supervisory Authority to apply one or more of the prohibitions mentioned in Sections 243 a or 243 c, the Financial Supervisory Authority must consult the other competent authorities in the supervisory college and notify the European Banking Authority before a prohibition pursuant to Sections 243 a or 243 c is imposed on the parent company.

Subsection 3. If the Financial Supervisory Authority as the consolidating authority receives a consultation as mentioned in Section 177 b, subsection 1, pursuant to subsection 1, the Financial Supervisory Authority must give its assessment of the intended prohibition's impact on the group within 3 working days after receipt.

Subsection 4. If more than one competent authority in the supervisory college wishes to impose one or more prohibitions pursuant to Sections 243 a or 243 c on a group covered by subsection 1, the Financial Supervisory Authority assesses in cooperation with the other competent authorities in the supervisory college whether it is most appropriate to appoint the same interim administrator, cf. Section 243 c, for all affected companies or to coordinate the application of one or more prohibitions in Section 243 a on more than one company. The Financial Supervisory Authority and the other competent authorities in the supervisory college must strive to reach a joint decision no later than 5 working days after the consultation mentioned in subsection 2. If a joint decision is reached, the Financial Supervisory Authority sends this to the parent company.

Subsection 5. If no joint decision is reached no later than 5 working days after the consultation mentioned in subsection 2, cf. subsection 4, the Financial Supervisory Authority makes a decision on the application of one or more prohibitions, cf. Sections 243 a or 243 c, against the parent company. The Financial Supervisory Authority notifies the parent company and the other relevant competent authorities in the supervisory college of this decision. The Financial Supervisory Authority must postpone the decision and decisions pursuant to subsection 2, if one of the competent authorities in the supervisory college has brought the matter before the European Banking Authority, and must thereafter make a

april 2026. 62 Nr. 432.

viduelle, konsoliderede og eventuelt delkonsoliderede forpligtelser, de er underlagt. I denne vurdering tages der navnlig hensyn til a) positionen af den finansielle holdingvirksomhed i en koncern med flere niveauer, b) ejerstrukturen og c) den rolle, den finansielle holdingvirksomhed har i koncernen.
3) Kriterierne vedrørende aktionærer og selskabsdeltagere i kreditinstitutter i § 14, stk. 2, og §§ 61 a og 64 er opfyldt.
Stk. 3. Er betingelserne i stk. 2 ikke opfyldt, underlægges den finansielle holdingvirksomhed passende tilsynsforanstaltninger, som kan omfatte:

Suspension af udøvelsen af de stemmerettigheder, der er knyttet til den finansielle holdingvirksomheds aktier i kreditinstitutter, der er dattervirksomheder.
Påbud mod den finansielle holdingvirksomhed eller medlemmerne af ledelsesorganet.
Afgivelse af instrukser eller udstedelse af retningslinjer rettet mod den finansielle holdingvirksomhed om at overføre kapitalinteresserne i kreditinstitutter, der er dattervirksomheder, til sine aktionærer.
Udpegning på foreløbigt grundlag af en anden finansiel holdingvirksomhed eller et andet institut inden for samme koncern som ansvarlig for at sikre overholdelse af kravene i denne lov og Europa-Parlamentets og Rådets forordning (EU) nr. 575/2013 om tilsynsmæssige krav til kreditinstitutter på konsolideret niveau.
Begrænsning af eller forbud mod udlodninger eller rentebetalinger til aktionærer.
Krav om, at finansielle holdingvirksomheder afhænder eller begrænser kapitalandele i kreditinstitutter eller andre enheder i den finansielle sektor.
Krav om, at finansielle holdingvirksomheder forelægger en plan for straks at overholde betingelserne i stk. 2 på ny.
Stk. 4. Den finansielle holdingvirksomhed eller den blandede finansielle holdingvirksomhed kan anmode om fritagelse for godkendelse efter stk. 1, som tildeles, hvis følgende betingelser er opfyldt:
Den finansielle holdingvirksomheds hovedaktivitet består i at erhverve kapitalandele i dattervirksomheder.
Den finansielle holdingvirksomhed er ikke udpeget som afviklingsenhed i overensstemmelse med afviklingsstrategien fastsat af den relevante afviklingsmyndighed.
Et kreditinstitut, der er dattervirksomhed, eller en finansiel holdingvirksomhed eller en blandet finansiel holdingvirksomhed, der er datterselskab og godkendt i overensstemmelse med denne bestemmelse, er udpeget som ansvarlig for at sikre koncernens overholdelse af tilsynskrav på konsolideret niveau og har alle de fornødne midler og den retlige beføjelse til at indfri disse forpligtelser på en effektiv måde.
Den finansielle holdingvirksomhed tager ikke del i ledelsesmæssige, operationelle eller finansielle beslutninger, der påvirker koncernen eller dens dattervirksomheder, der er kreditinstitutter eller finansieringsinstitutter.
Der er ikke nogen hindringer for et effektivt tilsyn med koncernen på konsolideret niveau.
Stk. 5. Er betingelserne i stk. 4 ikke længere opfyldt, skal den finansielle holdingvirksomhed søge om godkendelse.
Stk. 6. Som led i ansøgning om godkendelse efter stk. 1 skal finansielle holdingvirksomheder oplyse Finanstilsynet og den konsoliderende tilsynsmyndighed, hvis den ikke er den samme myndighed, om følgende:
Organisationsstrukturen for den koncern, hvori den finansielle holdingvirksomhed indgår, med klar angivelse af dens dattervirksomheder og eventuelle modervirksomheder samt placeringen og den type aktivitet, de enkelte enheder udøver i koncernen.
Oplysninger om nomineringen af mindst to personer, der varetager den faktiske ledelse af den finansielle holdingvirksomhed, og overholdelse af kravene i § 64 til kvalifikationer for et medlem af bestyrelsen eller direktionen.
Oplysninger om overholdelse af kriterierne i § 14, stk. 2, og § 61 a vedrørende aktionærer og selskabsdeltagere, hvis den finansielle holdingvirksomhed har et realkreditinstitut eller pengeinstitut som dattervirksomhed.
Den interne organisation og fordelingen af opgaver inden for koncernen.
Alle andre oplysninger, som Finanstilsynet eller den konsoliderende tilsynsmyndighed finder nødvendige for at udføre vurderinger i overensstemmelse med stk. 2 og 4.
Stk. 7. Finanstilsynet overvåger løbende som den konsoliderende tilsynsmyndighed overholdelsen af betingelserne omhandlet i stk. 2 eller 4. Finanstilsynet deler relevante oplysninger forbundet hermed med den kompetente myndighed i den medlemsstat, den finansielle holdingvirksomhed er beliggende i.
Stk. 8. Er Finanstilsynet som konsoliderende tilsynsmyndighed forskellig fra den kompetente myndighed i den medlemsstat, den finansielle holdingvirksomhed er beliggende i, tages en fælles beslutning om godkendelse eller fritagelse for godkendelse, jf. stk. 2, 4 og 15, og om tilsynsforanstaltningerne i stk. 3 og 5. Til brug herfor udarbejder Finanstilsynet som den konsoliderende tilsynsmyndighed en vurdering af relevante forhold omhandlet i stk. 2-4, 7 og 15, og sender denne vurdering til den kompetente myndighed. Stk. 9. Finanstilsynet og andre tilsynsmyndigheder skal, inden for 2 måneder efter at Finanstilsynet har foretaget og sendt sin vurdering nævnt i stk. 8, nå frem til en fælles beslutning, jf. dog stk. 13. Opnås en fælles beslutning, meddeler Finanstilsynet som den konsoliderende tilsynsmyndighed beslutningen til ansøgeren. Stk. 10. Foreligger der ikke inden for 2 måneder en fælles beslutning, henviser Finanstilsynet sagen til Den Europæiske Banktilsynsmyndighed, som træffer beslutning inden for 1 måned efter modtagelsen af henvisningen. Finanstilsynet meddeler som den konsoliderende tilsynsmyndighed denne beslutning til ansøgeren.

april 2026. 63 Nr. 432.

Stk. 11. Efter udløbet af perioden på 2 måneder, jf. stk. 9, eller efter at der er truffet en fælles beslutning, kan sagen ikke længere henvises til Den Europæiske Banktilsynsmyndighed.
Stk. 12. Kan en finansiel holdingvirksomhed ikke godkendes, eller fritages for godkendelse, jf. stk. 4, underretter Finanstilsynet som den konsoliderende tilsynsmyndighed ansøgeren om begrundelsen herfor. Begrundelsen skal meddeles til ansøgeren senest 4 måneder efter tilsynsmyndighedens modtagelse af alle de oplysninger, der er nødvendige for at tage stilling til ansøgningen om godkendelse. Stk. 13. Der skal dog i alle tilfælde træffes beslutning om at meddele eller afvise godkendelse inden for en frist på 6 måneder efter ansøgningens modtagelse. Stk. 14. Stk. 1-13 finder ikke anvendelse for investeringsforvaltningsholdingvirksomhed, jf. § 5, stk. 1, nr. 12. Stk. 15. Finanstilsynet og den konsoliderende tilsynsmyndighed, hvor den konsoliderende tilsynsmyndighed er forskellig fra Finanstilsynet, kan uanset stk. 4 give tilladelse til, at finansielle holdingvirksomheder eller blandede finansielle holdingvirksomheder, som er fritaget for godkendelse, jf. stk. 4, udelukkes fra konsolideringen, hvis følgende betingelser er opfyldt:

Udelukkelsen påvirker ikke effektiviteten af tilsynet med kreditinstituttet, der er datterselskab, eller med koncernen.
Den finansielle holdingvirksomhed eller den blandede finansielle holdingvirksomhed har ingen aktieeksponering ud over aktieeksponeringen i kreditinstituttet, der er datterselskab, eller i det mellemliggende finansielle moderholdingvirksomhed eller det mellemliggende blandede finansielle holdingvirksomhed, som kontrollerer kreditinstituttet, der er datterselskab.
Den finansielle holdingvirksomhed eller den blandede finansielle holdingvirksomhed benytter sig ikke i væsentlig grad af gearing og har ingen eksponeringer, der ikke vedrører dens ejerskab af kreditinstituttet, der er datterselskab, eller af den mellemliggende finansielle moderholdingvirksomhed eller den mellemliggende blandede finansielle holdingvirksomhed, som kontrollerer kreditinstituttet, der er datterselskab.
Konsolidering
§ 176. Besidder et investeringsforvaltningsselskab eller en finansiel holdingvirksomhed alene eller sammen med andre virksomheder i koncernen kapitalinteresser i et kredit- eller finansieringsinstitut, der ikke er en dattervirksomhed, og drives kredit- eller finansieringsinstituttet i fællesskab med andre virksomheder, der ikke indgår i koncernen, skal der foretages en pro rata-konsolidering af virksomheden i henhold til §§ 170 og 174 i forhold til koncernvirksomhedernes andel af egenkapital og resultat i den virksomhed, hvori kapitalinteressen besiddes. Stk. 2. Hvis investeringsforvaltningsselskabets eller den finansielle holdingvirksomheds ansvar for virksomheden ikke er begrænset til ejerandelen eller stemmerettighederne, skal der foretages en fuld konsolidering i henhold til §§ 170 og 174. Stk. 3. Stk. 1 og 2 finder ikke anvendelse for den øverste modervirksomhed i Danmark, som indgår i en koncern, hvor der foretages konsolidering i henhold til artikel 11, stk. 1 og 2, i Europa-Parlamentets og Rådets forordning (EU) nr. 575/2013 om tilsynsmæssige krav til kreditinstitutter. § 177. Forsikringsselskaber og forsikringsselskabers dattervirksomheder og virksomheder, der midlertidigt drives af finansielle virksomheder, skal ikke medtages ved konsolideringen i henhold til §§ 170 og 174. Finanstilsynet kan dog bestemme, at disse virksomheder skal medtages. Stk. 2. Pengeinstitutter, realkreditinstitutter eller finansieringsinstitutter, der er dattervirksomheder af forsikringsselskaber, skal medtages i konsolideringen i henhold til § 170, hvis den øverste modervirksomhed i Danmark er en investeringsforvaltningsholdingvirksomhed. § 177 a. I koncerner, hvor den øverste modervirksomhed er beliggende i Danmark, og hvor modervirksomheden er et pengeinstitut, et realkreditinstitut, en blandet holdingvirksomhed eller en finansiel holdingvirksomhed, som mindst har én dattervirksomhed, som er et pengeinstitut eller et realkreditinstitut, finder §§ 243 a og 243 c anvendelse. Stk. 2. Opfylder en modervirksomhed som nævnt i stk. 1 betingelserne for, at Finanstilsynet kan anvende et eller flere af de i §§ 243 a eller 243 c nævnte påbud, skal Finanstilsynet høre de øvrige kompetente myndigheder i tilsynskollegiet og underrette Den Europæiske Banktilsynsmyndighed, inden et påbud efter §§ 243 a eller 243 c påbydes modervirksomheden. Stk. 3. Modtager Finanstilsynet som konsoliderende myndighed efter stk. 1 en høring som nævnt i § 177 b, stk. 1, skal Finanstilsynet give sin vurdering af det påtænkte påbuds indvirkning på koncernen inden for 3 arbejdsdage efter modtagelsen. Stk. 4. Ønsker mere end én kompetent myndighed i tilsynskollegiet at give et eller flere påbud efter §§ 243 a eller 243 c til en koncern, som er omfattet af stk. 1, vurderer Finanstilsynet i samarbejde med de øvrige kompetente myndigheder i tilsynskollegiet, om det er mest hensigtsmæssigt at udpege den samme midlertidige administrator, jf. § 243 c, for alle berørte virksomheder eller at koordinere
anvendelsen af et eller flere påbud i § 243 a på mere end én virksomhed. Finanstilsynet og de øvrige kompetente myndigheder i tilsynskollegiet skal tilstræbe at nå en fælles beslutning senest 5 arbejdsdage efter den i stk. 2 nævnte høring. Opnås en fælles beslutning, fremsender Finanstilsynet denne til modervirksomheden. Stk. 5. Foreligger der ikke senest 5 arbejdsdage efter den i stk. 2 nævnte høring en fælles beslutning, jf. stk. 4, træffer Finanstilsynet beslutning om anvendelse af et eller flere påbud, jf. §§ 243 a eller 243 c, over for modervirksomheden. Finanstilsynet underretter modervirksomheden og de øvrige relevante kompetente myndigheder i tilsynskollegiet om denne beslutning. Finanstilsynet skal udskyde beslutningen og beslutninger efter stk. 2, såfremt en af de kompetente myndigheder i tilsynskollegiet har indbragt sagen for Den Europæiske Banktilsynsmyndighed, og skal herefter træffe

april 2026. 64 Nr. 432.

decision in accordance with the decision of the European Banking Authority.

§ 177 b. In cases where one or more subsidiaries, which are credit institutions or mortgage credit institutions, are subject to supervision by the Financial Supervisory Authority, but another authority within the European Union or in countries with which the Union has concluded agreements in the financial field is the consolidating authority for the group in question, the Financial Supervisory Authority shall, when the conditions for applying §§ 243 a or 243 c are met in relation to one or more subsidiaries, consult the consolidating authority before the Financial Supervisory Authority issues one or more orders to the subsidiary pursuant to §§ 243 a or 243 c. The Financial Supervisory Authority shall notify the consolidating authority and the other competent authorities in the supervisory college of the decision.

Subsection 2. In a group where consolidated supervision is not with the Financial Supervisory Authority, pursuant to subsection 1, the Financial Supervisory Authority may decide to apply one or more orders, pursuant to §§ 243 a or 243 c, to a credit institution or a mortgage credit institution subject to supervision by the Financial Supervisory Authority, if a joint decision as referred to in § 177 a, subsection 4, second sentence, is not available within the deadline set in § 177 a, subsection 4, second sentence. The Financial Supervisory Authority shall notify the credit institution or mortgage credit institution of this decision. The Financial Supervisory Authority shall defer the decision if the matter has been referred to the European Banking Authority, and shall thereafter make a decision in accordance with the decision of the European Banking Authority.

Exceptions

§ 178. The Financial Supervisory Authority may, in special cases, exempt from the requirements in §§ 170 and 174.

Separation, Divestment and Intra-Group Transactions

§ 179. The Financial Supervisory Authority may order a parent company owning capital shares in financial companies to separate the financial companies and financing undertakings in a sub-group under a financial holding company, if

the group is structured in such a way that the parent company is not required to meet the solvency requirement in § 170, Article 92(1), in conjunction with Article 11(1) and (2) of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions,
a member of the parent company's board of directors or management is subject to one of the circumstances in § 64(1), No. 3-5, or
the structure otherwise complicates the performance of supervisory tasks.

§ 180. The Financial Supervisory Authority may order a financial holding company or an insurance holding company to divest capital shares in a financial company, if

the parent company or the group does not meet the solvency requirement in § 170 or Article 92(1), in conjunction with Article 11(1) and (2) of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions,
a member of the holding company's board of directors or management does not have sufficient experience to perform the role or position or is subject to one of the circumstances in § 64(1), No. 3-5, or
the parent company hinders sound and prudent management of the financial company.

§ 181. The Financial Supervisory Authority lays down detailed rules for transactions entered into between a financial company and

companies directly or indirectly connected to the financial company as subsidiaries, associated undertakings or parent companies or as the parent company's associated undertakings and other subsidiaries,
companies or persons connected to the financial company through close links, pursuant to § 5(1), No. 15, or
companies not covered by No. 1 and 2, where the persons in the management of the majority of the companies are the same, or where the companies are subject to joint management pursuant to an agreement or articles of association.

Subsection 2. Intra-group transactions carried out in breach of the rules laid down pursuant to subsection 1 shall be revoked, such that services are returned if possible, including that any security provided ceases. Payments from the financial company made in connection with intra-group transactions in breach of the rules laid down pursuant to subsection 1 shall be refunded together with an annual interest on the amount corresponding to the interest rate set pursuant to § 5(1) and (2) of the Act on Interest and Other Matters Regarding Delayed Payment.

§ 182. A credit institution or a mortgage credit institution may not, without permission from the Financial Supervisory Authority, have exposures to other companies within the same group, except for exposures to subsidiaries, subject to §§ 182 b-182 f.

Subsection 2. A credit institution or a mortgage credit institution may not otherwise have an exposure to companies or persons who directly or indirectly have decisive influence on the credit institution or mortgage credit institution, or who are dominated by companies or persons with such influence.

Subsection 3. The Financial Supervisory Authority may exempt from subsection 2.

Subsection 4. For companies with state capital injection pursuant to the Act on State Capital Injection in Credit Institutions, permission in accordance with subsection 1 presupposes that the company can demonstrate that the exposure is not a consequence of the state capital injection and is not in conflict with § 8(2), No. 7, of the Act on State Capital Injection in Credit Institutions.

§ 182 a. For credit institutions meeting the criteria in Article 10 of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions, § 124 applies only on a consolidated basis.

§ 182 b. Companies within a group, which are either credit institutions, mortgage credit institutions, financing undertakings, mixed holding companies or financial holding companies with at least one subsidiary which is a credit institution, a mortgage credit institution or a financing undertaking, may, with the permission of the Financial Supervisory Authority, pursuant to subsection 3, enter into an agreement on intra-group financial support for one or more of the parties to the agreement, if one of the parties subsequently comes into a situation where the conditions for early intervention in Chapter 15 a are met. An agreement on intra-group financial support must be compatible with the conditions set out in § 182 d.

Subsection 2. When entering into an agreement on intra-group financial support, pursuant to subsection 1, the companies which are parties to the agreement shall act in their own interest. The agreement on intra-group financial support shall establish principles for the calculation of the remuneration to be paid for transactions in accordance with the agreement.

Subsection 3. An application for permission to enter into an agreement on intra-group financial support, pursuant to subsection 1, shall be submitted to the Financial Supervisory Authority by the parent company in the group, when the ultimate parent company within the European Union is under consolidated supervision by the Financial Supervisory Authority. The application shall contain a draft of the intended agreement, information on which companies intend to participate in the agreement, and other information necessary for the Financial Supervisory Authority's assessment of whether the agreement is compatible with the conditions set out in § 182 d.

Subsection 4. The Financial Supervisory Authority shall immediately forward the application for permission to enter into an agreement on intra-group financial support submitted pursuant to subsection 3 to the competent authorities for each of the subsidiaries wishing to participate in the agreement, in order to reach a joint decision.

Subsection 5. The Financial Supervisory Authority grants permission for the intended agreement in accordance with the procedures in subsections 7 and 8, if the agreement is assessed to be compatible with the conditions set out in § 182 d for providing intra-group financial support.

Subsection 6. The Financial Supervisory Authority may, in accordance with the procedures in subsections 7 and 8, prohibit the entry into the intended agreement on intra-group financial support, if the agreement is considered incompatible with the conditions set out in § 182 d for providing intra-group financial support.

Subsection 7. The Financial Supervisory Authority shall, together with the authorities mentioned in subsection 4, within 4 months of receiving the application mentioned in subsection 3, reach a joint decision on the application. If a joint decision is reached, the Financial Supervisory Authority shall forward this to the company.

Subsection 8. If no joint decision is reached within the deadline of 4 months, pursuant to subsection 7, the Financial Supervisory Authority shall make its own decision on the application. The Financial Supervisory Authority shall notify the company and the authorities, pursuant to subsection 4, of the decision.

Subsection 9. The Financial Supervisory Authority shall defer the decision if any of the authorities mentioned in subsection 4 has referred the matter to the European Banking Authority, and shall thereafter make a decision in accordance with the decision of the European Banking Authority.

§ 182 c. If the Financial Supervisory Authority has granted permission for an agreement on intra-group financial support pursuant to § 182 b(1), the agreement shall be approved by the shareholders in each of the companies wishing to participate in the agreement.

Subsection 2. The board of directors for each of the companies participating in the agreement on intra-group financial support shall annually report to the shareholders on the implementation of the decisions made pursuant to the agreement.

§ 182 d. A company, pursuant to § 182 b, may only provide intra-group financial support in accordance with the agreement entered into, pursuant to § 182 b(1), to another company meeting the conditions in Chapter 15 a on early intervention, when the following conditions are met:

It can reasonably be expected that the intra-group financial support will remedy the significant financial problems in the recipient company.
The intra-group financial support aims to preserve or restore financial stability in the group as a whole or in one of the companies and is in the interest of the providing company.
The intra-group financial support is provided on market-based terms, including against remuneration, pursuant to § 182 b(2).
There is a reasonable prospect that the remuneration for the intra-group financial support will be paid, including that the loan will be repaid by the recipient company, if the support is provided in the form of a loan.
The provision of the intra-group financial support will not threaten the liquidity or solvency of the providing company.
The provision of the intra-group financial support will not pose a threat to financial stability, in particular in countries within the European Union or in countries with which the Union has concluded agreements in the financial field, where the providing company is established.
The providing company meets the capital and liquidity requirements at the time of providing the intra-group financial support, and the provision of the support does not result in the requirements no longer being met, unless the Financial Supervisory Authority or the competent authority in countries within the European Union or in countries with which the Union has concluded agreements in the financial field, responsible for supervising the providing company, has granted specific permission for this.
The providing company meets the requirements for large exposures set out in Part Four of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions at the time of providing the intra-group financial support, unless the competent authority in countries within the European Union or in countries with which the Union has concluded agreements in the financial field, responsible for supervising the providing company, has granted specific permission for the non-compliance.
The provision of the intra-group financial support does not change the possibilities for resolution of the providing company.

§ 182 e. The board of directors of the providing company shall decide to provide intra-group financial support in accordance with the agreement thereon, if the conditions in § 182 d are met. The board of directors of the recipient company shall decide to accept intra-group financial support in accordance with the agreement.

Subsection 2. The board of directors of the providing company shall, prior to providing intra-group financial support in accordance with an approved agreement thereon, pursuant to § 182 b(5), notify

the Financial Supervisory Authority,
the consolidating supervisory authority, if this is not the Financial Supervisory Authority,
the competent authority for the recipient company, if this is not covered by No. 1 or 2, and
the European Banking Authority.

Subsection 3. Notification pursuant to subsection 2 shall contain the board's reasoned decision, pursuant to subsection 1, and detailed information on the intended intra-group financial support, including a copy of the agreement on intra-group financial support.

Subsection 4. The Financial Supervisory Authority has 5 working days from the time of receipt of the notification, pursuant to subsection 2, and receipt of the required information, pursuant to subsection 3, to prohibit or limit the intra-group financial support, if the Financial Supervisory Authority assesses that the conditions in § 182 d are not met.

Subsection 5. The Financial Supervisory Authority's decision to accept, prohibit or limit the intra-group financial support shall be communicated immediately to

the consolidating supervisory authority, if this is not the Financial Supervisory Authority,
the competent authority for the recipient company, and
the European Banking Authority.

Subsection 6. If the Financial Supervisory Authority does not prohibit or limit the intra-group financial support within the deadline stated in subsection 4, intra-group financial support may be provided in accordance with the notification.

Subsection 7. The board's decision to provide intra-group financial support shall be sent to the authorities mentioned in subsection 2. The Financial Supervisory Authority shall immediately notify the other members of the supervisory college and the members of the resolution college, if the Financial Supervisory Authority has consolidated supervision of the group.

§ 182 f. A company which is a party to an agreement on intra-group financial support, pursuant to § 182 b, shall publish on its website a description of the general conditions of the agreement as well as names and identification numbers in the form of CVR numbers for Danish companies which are parties to the agreement.

Subsection 2. Publication pursuant to subsection 1 shall take place at least once a year simultaneously with the publication of the annual report. Publication pursuant to subsection 1 shall also take place if there are significant changes in the agreement on intra-group financial support or in the company during the year. Articles 431-434 of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions shall apply correspondingly.

Section VI
Annual Report, Audit and Use of Year's Surplus
Chapter 13
Annual Report, Audit and Use of Year's Surplus General Rules on Annual Report and Audit

§ 183. Financial companies and financial holding companies shall prepare an annual report consisting of a management report, a management statement and an annual accounts statement consisting of a balance sheet, an income statement, other comprehensive income, notes, including a statement of accounting policies, and a summary of movements in equity. When an annual accounts statement has been audited, the auditor's report forms part of the annual report. If a statement on sustainability reporting has been issued, pursuant to § 193 a(1), this shall form part of the annual report.

Subsection 2. The annual report shall be prepared in accordance with the rules in this chapter and rules laid down pursuant to § 196, subject to subsections 3-6.

Subsection 3. Where provisions in this chapter or rules issued pursuant thereto regulate the same matters as the Council Regulation on the application of international accounting standards regulates, pursuant to Article 4 of the Regulation, the provisions in this chapter or the rules issued pursuant thereto shall not have validity for the consolidated accounts of the companies covered by Article 4 of the Regulation.

Subsection 4. Financial companies and financial holding companies which do not issue transferable securities admitted to trading on a regulated market in this country, in another country within the European Union or in a country with which the Union has concluded agreements in the financial field, may, regardless of subsection 2, choose to apply the standards mentioned in subsection 3 to their consolidated accounts.

Subsection 5. Financial companies which, pursuant to subsection 4, follow the standards mentioned in subsection 3, shall apply all approved standards in their consolidated accounts. Where provisions in this Act or provisions issued pursuant to § 196 regulate the same matters as the standards, companies which, pursuant to subsection 4, apply the standards, shall apply the standards instead of the relevant provisions.

Subsection 6. The Financial Supervisory Authority may lay down disclosure requirements for companies following the standards mentioned in subsection 3.

§ 184. The board of directors and management shall prepare the annual report for the company.

Subsection 2. Each individual member of management is responsible for ensuring that the annual report is prepared in accordance with legislation and any additional requirements for accounts in the articles of association or agreement. Furthermore, each individual member is responsible for ensuring that the annual accounts and any consolidated accounts can be audited in good time, and for ensuring that the annual report can be approved in good time. Finally, each individual member of the board of directors is responsible for ensuring that the annual report is submitted to the Financial Supervisory Authority, pursuant to § 194.

1, and the Danish Business Authority, pursuant to Section 195, subsection 1, within the time limits set by legislation.

Subsection 3. Furthermore, each individual member of the governing management bodies is responsible for:

ensuring that the annual report can be audited and approved in good time, and
ensuring that any declaration on sustainability reporting can be issued, so that the annual report can be approved in good time.

Subsection 4. Each individual member of the highest management body is responsible for ensuring that the annual report is submitted to the Financial Supervisory Authority, pursuant to Section 194, subsection 1, and the Danish Business Authority, pursuant to Section 195, subsection 1, within the time limits set by the law.

Section 185. When the annual report has been prepared, all members of the board of directors and the executive management must sign it and date the signature. They must give their signature in connection with a management statement, in which the name and function of each individual member in relation to the company are clearly indicated, and in which they declare whether:

the annual report is drawn up in accordance with the requirements of the legislation and any requirements in the articles of association or agreement,
the annual accounts and any group accounts give a true and fair view of the company's and, if group accounts have been prepared, the group's assets and liabilities, financial position as well as the result, and
the management report contains a true and fair account of the development in the company's and, if group accounts have been prepared, the group's activities and economic affairs as well as a description of the most significant risks and uncertainties that the company or group may be affected by, and that any sustainability reporting has been drawn up in accordance with the rules in this chapter and the rules issued pursuant to Section 193 a, subsection 6, and Section 196.

Subsection 2. If the annual report is signed digitally, pursuant to Section 6 b, the requirement in subsection 1 that the signature and the dating of the signature must be given in connection with the management statement is waived. The signer's name must, however, appear clearly in connection with the management statement.

Subsection 3. If the management has added supplementary reports to the annual report, the members of the board of directors and the executive management must declare in the management statement whether the report gives a true and fair account within the framework of generally accepted guidelines for such reports.

Subsection 4. Even if a management member disagrees completely or partially with the annual report or has objections to its approval with the content that has been decided, the member cannot refrain from signing. The management member may, however, indicate their objections with a concrete and comprehensive justification in connection with their signature and the management statement.

Section 186. The annual accounts and any group accounts must give a true and fair view of the company's and group's assets and liabilities, financial position as well as the result. The management report must contain a true and fair account of the matters dealt with in the report.

Subsection 2. If the application of the provisions of this law or the rules issued pursuant to Section 196 is not sufficient to give a true and fair view as mentioned in subsection 1, additional information must be given in the annual accounts or group accounts.

Subsection 3. If the application of the provisions of this chapter or rules issued pursuant to Section 196 in special cases would conflict with the requirement in subsection 1, first sentence, they must be departed from so that this requirement is met. Such a departure must be disclosed in the notes every year and always justified concretely and comprehensively with information about the impact, including as far as possible the monetary impact, the departure has on the company's or group's assets and liabilities, financial position as well as the result.

Section 187. In order for the annual accounts and group accounts to give a true and fair view, and for the management report to contain a true and fair account, pursuant to Section 186, the requirements in subsections 2 and 3 must be met.

Subsection 2. The annual report must be prepared in such a way that it supports the users of the accounts in their economic decisions. The users of the accounts mentioned are persons, companies, organizations and public authorities etc., whose economic decisions are normally expected to be affected by an annual report, including current or future business participants, creditors, employees, customers, alliance partners, the local community as well as grant-giving and tax authorities. The decisions mentioned must at least concern:

the allocation of the user's own resources,
the management of the company's resources by the management, and
the distribution of the company's resources.

Subsection 3. The annual report must be prepared in such a way that it provides information on matters that are normally relevant to the users of the accounts, pursuant to subsection 2. The information must also be reliable in relation to what the users of the accounts normally expect.

Section 188. The annual report must be prepared according to the following basic assumptions:

It must be prepared in a clear and understandable manner (clarity).
Account must be taken of the actual circumstances and not of formalities without real content (substance).
All relevant matters must be included in the annual report, unless they are insignificant (materiality). If several insignificant matters are considered together to be significant, they must, however, be included.
The operation of an activity is assumed to continue (going concern), unless it is not to or is not assumed to be able to continue. If an activity is discontinued, the classification and presentation as well as recognition and measurement must be adapted to this discontinuation.
Any change in value must be shown, regardless of the impact on equity and profit and loss account (neutrality).
Transactions, events and changes in value must be recognized when they occur, regardless of the time of payment (accrual basis).
Recognition methods and measurement bases must be applied consistently to the same category of matters (consistency).
Each transaction, event and change in value must be recognized and measured separately, and the individual matters must not be offset against each other (gross value).
The opening balance for the financial year must correspond to the closing balance for the preceding financial year (formal continuity).

Subsection 2. Presentation and classification, consolidation method, recognition method and measurement basis as well as the monetary unit used must not be changed from year to year (real continuity). Change may, however, be made if this thereby better achieves a true and fair view, or if the change is necessary as a result of a change in law or new rules issued pursuant to Section 196.

Subsection 3. The Financial Supervisory Authority may, regardless of subsection 1, item 8, set rules on the obligation to offset.

Subsection 4. The provisions in subsection 1, items 6-9, and subsection 2 may be departed from in special cases. In that case, Section 186, subsection 3, second sentence, applies correspondingly.

Section 189. Assets and liabilities of financial businesses must, unless otherwise provided pursuant to Section 196, be measured at fair value. Assets and liabilities are written up and down in accordance herewith, and write-ups and write-downs are recognized in the profit and loss account, unless otherwise provided pursuant to Section 196.

Section 190. Supplementary reports, e.g. reports on knowledge and employees' matters (knowledge accounts), on environmental matters (green accounts), on the company's social responsibility (social accounts) and on the company's ethical objectives and follow-up thereof (ethical accounts), must give a true and fair account within the framework of generally accepted guidelines for such reports. They must meet the quality requirements in Section 187, subsection 3, and with the relaxations that follow from the nature of the matter, the basic assumptions in Section 188, subsections 1 and 2.

Subsection 2. The methods and measurement bases according to which the reports are drawn up must appear in the supplementary reports.

Section 191. The financial year must follow the calendar year.

Subsection 2. The first financial period may cover a shorter or longer period than 12 months, but at most 18 months.

Subsection 3. Parent companies and subsidiary companies must ensure that the subsidiary company has the same financial year as the parent company, unless this is not possible due to circumstances beyond the control of the parent company and the subsidiary company.

Subsection 4. The Financial Supervisory Authority may in special cases grant exemption from the requirement in subsection 1.

Section 192. Recognition, measurement and information in monetary units must be carried out in Danish kroner or in euros. The Financial Supervisory Authority may in rules issued pursuant to Section 196 determine that the amounts are stated in other foreign currencies that are relevant to the company or the company's group.

Section 193. The annual report must be audited by the company's external auditors, pursuant to Section 199. The audit does not cover the management report and the supplementary reports included in the annual report, pursuant to Section 190. The auditor must, however, issue an opinion on the management report.

Section 193 a. A company that is obliged to draw up sustainability reporting must have the sustainability reporting accompanied by a declaration on sustainability reporting.

Subsection 2. The declaration pursuant to subsection 1 must be issued by an auditor who is approved to issue declarations on sustainability reporting in accordance with the Auditor Act, or through an independent assurance provider who is registered in accordance with the Act on Independent Assurance Providers regarding Sustainability Reporting.

Subsection 3. Section 199, subsections 6-8 and 11, apply with the necessary adaptations correspondingly to the sustainability reporting.

Subsection 4. Sections 118 a, 144 and 145-149 b of the Companies Act apply with the necessary adaptations to the sustainability reporting.

Subsection 5. The board of directors may allow internal audit and deputy audit chiefs to perform audit actions as the basis for the declaration on sustainability reporting, pursuant to subsection 1. The provisions in Section 199, subsection 10, apply with the necessary adaptations correspondingly to the audit actions of internal audit and deputy audit chiefs in connection with the issuance of a declaration on sustainability reporting.

Subsection 6. The Financial Supervisory Authority sets rules on the implementation of the auditor's or the independent assurance provider's issuance of declarations on sustainability reporting. The Financial Supervisory Authority may also set rules on internal audit, insofar as it concerns sustainability reporting.

Section 193 b. For companies covered by Section 193 a, subsection 1, which before December 31, 2025, have chosen one or more auditors or independent assurance providers, pursuant to Section 149 a, subsection 1, of the Companies Act, to issue a declaration on sustainability reporting, deregistration of the chosen auditor(s) or independent assurance provider(s) does not require separate resolution.

Subsection 2. In the case of deregistration pursuant to subsection 1, Section 149 a, subsections 2 and 3, of the Companies Act do not apply.

Subsection 3. Deregistration pursuant to subsection 1 cannot be carried out after the next ordinary general meeting or similar meeting in a corresponding approval body held on December 31, 2025, or later.

Section 194. The annual report must, in the form in which it is presented and approved by the board of directors, be submitted to the Financial Supervisory Authority by digital communication without undue delay after the board meeting where the annual report is finally approved.

Subsection 2. The external auditor's audit protocol regarding the annual report as well as, for companies with an internal auditor, the internal audit chief's audit protocol regarding the annual report, must be submitted to the Financial Supervisory Authority by digital communication simultaneously with the submission of the annual report pursuant to subsection 1. If the external auditor does not keep an audit protocol regarding the annual report, other corresponding documentation is submitted.

Section 195. The approved annual report must be submitted to the Danish Business Authority without undue delay after final approval and at the latest 4 months after the end of the financial year. Companies that are obliged to draw up interim reports must also submit the drawn-up interim report to the Danish Business Authority at the latest 3 months after the end of the interim period.

Subsection 2. The submitted annual report must at least contain the mandatory components and the full audit opinion or other declaration from the auditor or an independent assurance provider, pursuant to Section 193 a. If the company wishes to publish supplementary reports as mentioned in Section 190, these must be submitted together with the mandatory components of the annual report, so that the mandatory components and the supplementary reports together appear as one document designated "annual report".

Subsection 3. A company that is obliged to draw up sustainability reporting, and which according to other legislation is obliged to have parts of its sustainability reporting verified by an accredited independent third party, must make the report from the independent third party available on the company's website.

Subsection 4. The Financial Supervisory Authority may, after consultation with the Danish Business Authority, set detailed rules on the submission of annual reports and interim reports to the Danish Business Authority and rules on the publication of annual reports and interim reports. Detailed rules may be set hereunder that annual reports and interim reports must be submitted digitally to the Danish Business Authority, and that communication in connection with this must take place digitally.

Section 195 a. Subsidiary companies and branches that must draw up a sustainability report on behalf of the highest parent company or a foreign company that is not subject to the legislation of the European Union or a country with which the Union has concluded an agreement in the financial area, must submit the sustainability report and a declaration on sustainability reporting, issued by a legal or natural person authorized to issue such a declaration according to the legislation of the country in question, to the Danish Business Authority at the latest 12 months after the end of the financial year to which the sustainability report relates.

Subsection 2. The companies mentioned in subsection 1 must submit a declaration that the sustainability report is drawn up on the basis of the information that the subsidiary company or branch possesses, if the highest parent company or the foreign company has not made the necessary information available for the use in drawing up the sustainability report. Any declaration must be submitted to the Danish Business Authority at the latest 12 months after the end of the financial year to which the sustainability report relates.

Subsection 3. Subsidiary companies and branches that are exempt from drawing up a sustainability report themselves, because the highest parent company, or the foreign company, has drawn up a sustainability report, must submit to the Danish Business Authority at the latest 12 months after the end of the financial year to which the report relates, the sustainability report drawn up by the highest parent company or the foreign company, together with a declaration on sustainability reporting, issued by a legal or natural person authorized to issue such a declaration according to the legislation of the country in question, or any declaration that the highest parent company or the foreign company has not issued a declaration on sustainability reporting.

Subsection 4. The Financial Supervisory Authority may, after consultation with the Danish Business Authority, set detailed rules on the submission of the sustainability report, the declaration on sustainability reporting and any declarations pursuant to subsections 2 and 3 to the Danish Business Authority.

Section 196. The Financial Supervisory Authority sets detailed rules for the annual report, including rules on the recognition and measurement of assets, liabilities, income and expenses, the presentation of the profit and loss account and balance sheet as well as requirements for notes and the management report.

Subsection 2. The Financial Supervisory Authority also sets rules for group accounts, including rules on when an annual report must include group accounts, and which companies this must cover.

Subsection 3. The Financial Supervisory Authority may set rules for the preparation and publication of accounting reports covering periods shorter than the annual report.

Subsection 4. The Financial Supervisory Authority sets rules on sustainability reporting, including rules on content and form.

Section 197. With the aim of ensuring that the annual reports and sustainability reports of financial businesses and financial holding companies drawn up by subsidiary companies and branches on behalf of the highest parent company or a foreign company that is not subject to the legislation of the European Union or a country with which the Union has concluded an agreement in the financial area, are in accordance with the rules in this chapter and the rules issued pursuant to Section 196, and that the group accounts of financial businesses covered by Article 4 of the Council Regulation on the application of international accounting standards are in accordance with the international accounting standards, the Financial Supervisory Authority may:

provide guidance,
point out violations, and
order that errors be corrected and violations be brought to an end.

Section 198. Financial businesses and financial holding companies must make regular accounting reports to the Financial Supervisory Authority in accordance with forms and guidelines thereto drawn up by the Financial Supervisory Authority. The reports must be submitted to the Financial Supervisory Authority in electronic form.

Subsection 2. The Financial Supervisory Authority may grant exemption from Section 198, subsection 1, second sentence.

Section 199. Financial businesses and financial holding companies must have at least one state-authorised auditor, and this auditor must, if it concerns the audit of credit institutions or mortgage credit institutions, also be certified by the Financial Supervisory Authority. If more than one auditor is chosen or an auditor is appointed after the third sentence, the additional chosen or appointed auditors must...

auditors must be state-certified and, in the case of audits of credit institutions or mortgage credit institutions, the signing auditor(s) must also be certified by the Financial Supervisory Authority. The Financial Supervisory Authority may in special cases appoint an additional auditor. This auditor functions under the same terms and according to the same rules as the auditors elected by the general meeting.

Subsection 2. The auditors of a financial undertaking or a financial holding company must also be auditors of the undertaking's subsidiaries. If a financial undertaking or a financial holding company has a subsidiary that is a credit institution or a mortgage credit institution, the elected signing auditors must be certified by the Financial Supervisory Authority to audit these types of financial undertakings, cf. subsection 1. However, it is sufficient that they are jointly certified to audit the individual types of financial undertakings in the group.

Subsection 3. Subsection 2 does not apply to parent and subsidiary undertakings that are not established in Denmark.

Subsection 4. The Financial Supervisory Authority may deprive an auditor of their certification, cf. subsection 1, first sentence, and thereby the right to audit the specific type of financial undertaking, and instead appoint another auditor, cf. subsection 1, third sentence, until a new election has been made, if

the auditor cannot within a deadline set by the Financial Supervisory Authority document that they meet the requirements for certification, or
the Financial Supervisory Authority finds that the auditor has not functioned satisfactorily, wholly or partially, and where there is reason to assume that the person in question will not perform the audit in a proper manner.

Subsection 5. Auditors who, in accordance with subsection 4, are deprived of their certification may demand that the Financial Supervisory Authority's decision be brought before the courts. A request to this effect must be submitted to the Financial Supervisory Authority within 4 weeks after the decision has been communicated to the person concerned. The request does not have suspensive effect, but the court may by order determine that the auditor in question may maintain their position as auditor for the specific type of financial undertaking during the proceedings. The Financial Supervisory Authority brings the case before the courts within 4 weeks. The case is instituted in the form of civil procedure.

Subsection 6. In the event of a change of auditor, the undertaking and the outgoing auditor must each provide a statement to the Financial Supervisory Authority no later than 1 month after leaving office, if the change is due to special circumstances.

Subsection 7. The Financial Supervisory Authority may require the auditor and, for undertakings with an internal auditor, the head of internal audit, to provide information regarding the circumstances in a financial undertaking, a financial holding company, or such undertakings' subsidiaries.

Subsection 8. The Financial Supervisory Authority may arrange an extraordinary audit in a financial undertaking, a financial holding company, or such undertakings' subsidiaries. The financial undertaking may be ordered to pay for the execution of the audit. The Financial Supervisory Authority approves the size of the remuneration.

Subsection 9. Sections 144-149 of the Companies Act on auditing apply with the necessary adjustments correspondingly to financial undertakings and financial holding companies that are not limited liability companies.

Subsection 10. The board of directors may not permit, cf. Section 80, subsection 1, that internal audit and deputy internal audit heads perform audit tasks in undertakings outside the group. The board of directors may not also permit that internal audit and deputy internal audit heads perform other work than audit tasks in undertakings within the group or in undertakings within the same administrative community. The Financial Supervisory Authority may in special cases grant a dispensation from the first sentence.

Subsection 11. The board of directors may not permit, cf. Section 80, subsection 1, that internal audit and deputy internal audit heads take on positions that cause them to conflict with impartiality rules corresponding to those that apply to external auditors of public interest undertakings pursuant to the Auditors Act and Regulation (EU) No 537/2014 of the European Parliament and of the Council of 16 April 2014 on specific requirements regarding statutory audit of undertakings of public interest.

Subsection 12. The Financial Supervisory Authority lays down rules on the implementation of auditing in financial undertakings, financial holding companies, and such undertakings' subsidiaries, including rules on internal auditing.

Subsection 13. The Financial Supervisory Authority lays down detailed rules on the certification of auditors, cf. subsection 1 and 4.

Section 200. An external auditor and a head of internal audit must immediately notify the Financial Supervisory Authority of any matter and any decision concerning the financial undertaking of which the auditor becomes aware in the exercise of their duties as auditor, and which may

constitute a significant breach of statutory provisions or regulations that set the conditions for the grant of authorization, or that specifically concern the undertaking's activities,
affect the undertaking's continued operation, or
lead to a refusal to sign the accounts or to the conclusion being modified.

Subsection 2. The duty to notify also covers any matter and any decision covered by subsection 1, which the external auditor and a head of internal audit become aware of as auditor for an undertaking that has close connections with the financial undertaking.

Section 200 a. (Repealed)

Special rules on the use of the year's profit in credit institutions

Section 201. A credit institution must make the provisions that are necessary according to the institution's economic position. The articles of association may prescribe a duty to make provisions.

Section 202. A savings bank's profit must be allocated to equity capital, except for amounts that are added to the savings bank's employees as part of agreements on profit sharing, amounts that the savings bank's board of representatives decides to use for the interest on the savings bank's guarantee capital, and amounts that are distributed to holders of hybrid core capital issued by the savings bank, if the guarantee capital or the hybrid core capital meets the conditions for being equity capital. The board of representatives may not set a higher interest on the guarantee capital than proposed or approved by the board of directors.

Subsection 2. The board of representatives may, however, determine that amounts from the savings bank's annual profit are to be used for public or charitable purposes. Such amounts may eventually be allocated to a special fund for later payment.

Subsection 3. Transfers to the guarantee capital from the savings bank's other equity capital are prohibited.

Section 203. A decision on the distribution of the profit amount that a cooperative has at its disposal after the annual accounts is made by the general meeting. The general meeting may not decide on the distribution of a higher dividend than proposed or approved by the board of directors.

Subsection 2. The general meeting may decide that gifts are to be made from the cooperative's funds for public or similar purposes, insofar as this is considered reasonable with regard to the intention of the gift, the cooperative's economic position, and the circumstances in general. The board of directors may use amounts for the purposes mentioned in the first sentence, which are of minor significance in relation to the cooperative's economic position.

Part VII
Intervention in or termination of the financial undertaking
Chapter 14
Merger and conversion
Merger

Section 204. The Financial Supervisory Authority must approve mergers, cf. subsection 6, and divisions, cf. subsection 7, for credit institutions, mortgage credit institutions, and financial holding companies covered by Section 175 g, where the surviving undertaking is subject to the supervision of the Financial Supervisory Authority. The Financial Supervisory Authority must also approve mergers and divisions when the surviving undertaking is located in a country outside the European Union with which the Union has not concluded an agreement in the financial area.

Subsection 2. A credit institution, a mortgage credit institution, or a financial holding company covered by Section 175 g must submit an application in accordance with subsection 1 prior to the implementation of the agreement. Several undertakings covered may submit a joint application.

Subsection 3. Where the surviving undertaking simultaneously must apply for authorization in accordance with Section 14 or approval in accordance with Section 175 g, this is not covered by subsection 1, cf. however Sections 207 and 211, cf. Section 208, subsection 4.

Subsection 4. Mergers and divisions covered by the Act on Restructuring and Winding Up of Certain Financial Undertakings are not covered by the approval requirement in subsection 1.

Subsection 5. Section 238, subsection 2, Section 239, subsection 2, Section 242, second sentence, Section 256, subsection 2, Section 257, subsection 2, Section 260, second sentence, Section 277, second sentence, and Section 297, second sentence, of the Companies Act do not apply to mergers covered by subsection 1.

Subsection 6. A merger in accordance with subsection 1 is understood as,

one or more companies transferring all assets and liabilities to another existing company in connection with dissolution without liquidation, in exchange for their company participants being allocated consideration,
one or more companies transferring all assets and liabilities to another existing company in connection with dissolution without liquidation without the issuing of new capital shares by the surviving company, provided that one person directly or indirectly holds all the capital shares in the merged companies, or that the participants in the merged companies hold their capital shares in the same proportion in all the merged companies,
two or more companies transferring all assets and liabilities to a new company in connection with their dissolution without liquidation, in exchange for their company participants being allocated consideration, or
a company transferring all assets and liabilities to the company that holds all the capital shares in the company in connection with the company's dissolution without liquidation.

Subsection 7. A division in accordance with subsection 1 is understood as,

a company transferring all its assets and liabilities to several companies after dissolution without liquidation, in exchange for the company participants in the divided company being allocated consideration,
a company transferring all its assets and liabilities to several newly established companies after dissolution without liquidation, in exchange for the company participants in the divided company being allocated consideration,
a combination of no. 1 and 2,
a divided company transferring part of its assets and liabilities to one or more receiving companies, in exchange for the participants in the divided company being allocated consideration, or
a divided company transferring part of its assets and liabilities to one or more receiving companies in exchange for consideration.

Section 204 a. A decision pursuant to Section 204, subsection 1, must be communicated to the applicant no later than 2 months after the receipt of the application. If the application is incomplete, a decision must be communicated no later than 2 months after the applicant has submitted the information necessary to make the decision. A decision must in any case be made no later than 6 months after the receipt of the application. If the merger or division concerns exclusively financial interests from the same group, subsections 2-5 apply.

Subsection 2. If the merger or division concerns exclusively financial interests from the same group, the Financial Supervisory Authority confirms in writing and no later than after 10 working days the receipt of the application, cf. Section 204, subsection 1. The same applies to the receipt of material, cf. subsection 4.

Subsection 3. The Financial Supervisory Authority has 60 working days from the time of the written confirmation of the receipt of the application, cf. subsection 2, first sentence, and the receipt of all documents required to be attached to the application, to make the assessment mentioned in Section 204 b. Simultaneously with the confirmation of the receipt of the application, cf. subsection 2, first sentence, the Financial Supervisory Authority notifies the intended acquirer of the date when the assessment period expires.

Subsection 4. The Financial Supervisory Authority may, until the 50th working day in the assessment period, cf. subsection 3, request additional information that is necessary for the assessment. The request must be in writing. The first time such a request is made, the assessment period is interrupted in the period between the time of the request and the receipt of the answer thereto. The interruption may, however, not exceed 20 working days, cf. however subsection 5.

Subsection 5. The Financial Supervisory Authority may extend the interruption of the assessment period as mentioned in subsection 4 by up to 10 working days, if

the intended acquirer is established or subject to the legislation in a country outside the European Union with which the Union has not concluded an agreement in the financial area, or
an exchange of information with the authorities responsible for the supervision of the undertaking pursuant to the Money Laundering Act is necessary to make the assessment mentioned in Section 204 b, subsection 1.

Subsection 6. The Financial Supervisory Authority's decision must be reasoned and communicated in writing to the financial undertaking no later than 2 working days after the conclusion of the assessment pursuant to Section 204 b.

Subsection 7. If the merger or division concerns exclusively financial interests from the same group, and the Financial Supervisory Authority does not reject the application for the intended merger or division in writing during the assessment period, the merger or division is deemed to be approved.

Subsection 8. The Financial Supervisory Authority may, upon approval pursuant to Section 204, subsection 1, set a deadline for the implementation of the merger or division. The Financial Supervisory Authority may extend such a deadline.

Section 204 b. The Financial Supervisory Authority assesses an application received pursuant to Section 204, subsection 1, in relation to the following criteria, cf. however subsection 3:

The reputation of the financial interests involved in the intended merger or division.
The financial solidity of the financial interests involved in the intended merger or division.
Whether the entity resulting from the intended merger or division will be able to comply with and continue to comply with supervisory requirements.
Whether the plan for the implementation of the intended merger or division is realistic and prudent from a supervisory perspective.
Whether there are reasonable grounds in connection with the intended merger or division to suspect that money laundering or financing of terrorism has occurred or is occurring or has been attempted, or that the intended merger or division may increase the risk thereof.

Subsection 2. The Financial Supervisory Authority must refuse approval pursuant to Section 204, subsection 1, if the criteria in subsection 1 are not met, or if the Financial Supervisory Authority has not received sufficient information despite a request for this.

Subsection 3. The Financial Supervisory Authority may refrain from assessing one or more of the criteria in subsection 1 in mergers or divisions that concern exclusively financial interests from the same group. If the Financial Supervisory Authority does not make an assessment in such cases, the Financial Supervisory Authority must notify the applicant thereof.

Section 204 c. A credit institution, a mortgage credit institution, or a financial holding company covered by Section 175 g that transfers assets or liabilities corresponding to at least 10 percent of the undertaking's total assets or liabilities must notify the Financial Supervisory Authority in writing prior to the transfer, cf. however Section 204 d. The percentage in the first sentence is increased to 15 percent if the transfer is made between entities in the same group.

Subsection 2. Undertakings covered by Section 175 g calculate the percentage in subsection 1 based on their consolidated situation.

Subsection 3. In the calculation of the percentage in subsection 1, the following are disregarded:

Transfers of non-performing assets.
Transfers of assets that are to form part of a cover pool as defined in Article 3, no. 3, of Directive (EU) 2019/2162 of the European Parliament and of the Council.
Transfers of assets that are to be securitized.
Transfers of assets or liabilities covered by the Act on Restructuring and Winding Up of Certain Financial Undertakings.

Subsection 4. The undertaking must notify the Financial Supervisory Authority no later than 30 days before the implementation of the transfer. The Financial Supervisory Authority confirms in writing and no later than after 10 working days the receipt of the notification in accordance with subsection 1.

Subsection 5. All credit institutions, mortgage credit institutions, and financial holding companies involved in the transfer must notify the Financial Supervisory Authority. The undertakings may submit a joint notification to the Financial Supervisory Authority.

Section 204 d. The Financial Supervisory Authority must approve a transfer in accordance with Section 204 c, subsection 1, if the receiving undertaking is located in a country outside the European Union with which the Union has not concluded an agreement in the financial area.

Subsection 2. A decision pursuant to subsection 1 must be communicated to the applicant no later than 2 months after the receipt of the application. If the application is incomplete, a decision must be communicated no later than 2 months after the applicant has submitted the information necessary to make the decision. A decision must in any case be made no later than 6 months after the receipt of the application.

Section 205. The Minister for Industry, Business and Financial Affairs may lay down rules that the provisions regarding merger in chapters 15 and 16 of the Companies Act apply with the necessary adjustments to

merger of cooperative and savings banks, and
merger of savings and cooperative banks with a limited liability company.

Section 206. No later than 1 month before the merger of a credit institution or a mortgage credit institution or a specific business part of these, cf. Section 204, the credit institution or mortgage credit institution must...

the institute shall inform depositors or investors thereof, if this has significance for the coverage of depositors and investors under Sections 9 and 10 of the Act on a Depositor and Investor Guarantee Scheme.

Subsection 2. The Danish Financial Supervisory Authority may grant permission for a shorter period than that mentioned in subsection 1, if the Danish Financial Supervisory Authority assesses that the interest in protecting business secrets or financial stability so requires.

Subsection 3. Subsections 1 and 2 apply with the necessary adjustments correspondingly to branches located in Denmark of credit institutions established in another country.

Conversion of Savings Banks and Cooperative Banks into Joint-Stock Companies

Section 207. In savings banks that have conducted business since January 1, 1989, and in cooperative banks that have conducted business since January 1, 1995, the representative body or the general meeting may, in accordance with the rules in this chapter, decide that the savings bank or cooperative bank is dissolved without liquidation by transferring the assets and liabilities of the savings bank or cooperative bank as a whole to a joint-stock company owned or established by the savings bank or cooperative bank, which has permission to conduct banking business (savings bank joint-stock company/cooperative bank joint-stock company). Shares in the joint-stock company corresponding to the value of the contributed assets after deduction of the savings bank's or the individual cooperative bank's liabilities, subject to Section 208, subsection 2, are transferred in savings banks to a foundation, in cooperative banks to a foundation or an association. The foundations are considered commercial foundations. The associations are covered by the Act on Certain Commercial Enterprises, and the members of the associations must be shareholders in the joint-stock company.

Subsection 2. A decision in accordance with subsection 1 is made with the majority required for the dissolution of the savings bank or cooperative bank.

Subsection 3. In the event of the dissolution of an association established pursuant to subsection 1 that owns shares in a cooperative bank joint-stock company, the equity capital may not be distributed to the association's members.

Section 208. Sections 236-251 and 271-290 of the Companies Act apply with the necessary modifications to the merger, pursuant to Section 207, subsection 1, between the joint-stock company as the continuing company and the savings bank or cooperative bank as the dissolved company. Section 238, subsection 2, Section 239, subsection 4, and Section 242, second sentence, of the Companies Act do not apply.

Subsection 2. The guarantors in the savings bank and the members in the cooperative bank must be offered either a conversion at market price of their guarantee certificates and membership certificates into shares in the joint-stock company, cash redemption, or a combination thereof. If cash redemption is offered, this must take place before the merger plan is signed. Cash redemption of guarantee capital or membership capital is conditional on the conversion being carried out.

Subsection 3. The merger plan mentioned in Section 237, subsection 1, items 3 and 4, of the Companies Act must contain information and provisions regarding the rights granted to the guarantors and members.

Subsection 4. The Minister for Business Affairs must approve the merger pursuant to Section 204, subsection 1.

Section 209. The foundations or associations established pursuant to Section 207, subsection 1, which own shares in a savings bank joint-stock company or a cooperative bank joint-stock company, are managed by a board of at least 3 members. The boards of the foundations and associations mentioned in the first sentence must safeguard the interests of the foundation or association.

Subsection 2. The following persons may not together or individually appoint or constitute a majority of the board of the foundation or association mentioned in subsection 1:

Members of the board, the representative body or similar representative organs, and employees of the savings bank joint-stock company or cooperative bank joint-stock company, pursuant to Section 207, subsection 1.
Members of the board, the representative body or similar representative organs, and employees of the foundation's or association's subsidiaries or associated undertakings.
Shareholders in the savings bank joint-stock company or cooperative bank joint-stock company, if their voting rights directly or indirectly constitute at least 5 percent of the voting rights of the share capital, or if the nominal value directly or indirectly constitutes at least 5 percent of the share capital.

Subsection 3. The chairman of the board of the savings bank joint-stock company or cooperative bank joint-stock company may not simultaneously be a member of the board of the foundations or associations mentioned in subsection 1.

Subsection 4. One member of and among the employee representatives of the savings bank joint-stock company or cooperative bank joint-stock company is appointed to the board of the foundations or associations mentioned in subsection 1, unless the rules on group representation in the Act on Commercial Foundations apply. The rules in the Companies Act on group representation apply correspondingly to the relevant member.

Subsection 5. Foundations and associations covered by subsection 1 must provide the Danish Financial Supervisory Authority with the information necessary for the authority's operations. Section 347, subsection 3, applies correspondingly.

Subsection 6. The provisions in subsections 1-5 do not apply if the savings bank joint-stock company or cooperative bank joint-stock company is wound up pursuant to Sections 226 and 227 and the savings bank joint-stock company or cooperative bank joint-stock company is not considered to be continued. When the savings bank joint-stock company or cooperative bank joint-stock company is wound up and cannot be considered continued, the foundation is still considered a commercial foundation, pursuant to Section 207, subsection 1. The Danish Business Authority must, as the foundation authority, permit the changes to the foundation's articles of association that are necessary pursuant to the Act on Commercial Foundations. The same applies to associations, pursuant to Section 207, subsection 1, where the Danish Business Authority must permit the changes to the association's articles of association that are necessary pursuant to the Act on Certain Commercial Enterprises.

Section 210. (Repealed)

Section 211. In savings banks that have conducted business since January 1, 1989, the representative body may decide that the savings bank is dissolved without liquidation by transferring the savings bank's assets and liabilities as a whole to a joint-stock company owned or established by the savings bank, which has permission to conduct banking business, and that a restricted savings bank reserve corresponding to the value of the contributed assets after deduction of the savings bank's liabilities is created in the joint-stock company.

Subsection 2. Section 7, subsection 7, Sections 207 and 208 apply correspondingly.

Section 212. The restricted savings bank reserve, pursuant to Section 211, may be used to cover deficits that are not covered by amounts that can be used for dividends in the joint-stock company.

Subsection 2. In the event of the termination of the credit institution, distribution to shareholders may only take place when the obligations pursuant to subsection 4 are fulfilled.

Subsection 3. In the event of a merger with another credit institution, the continuing company assumes the savings bank reserve on the same terms that were valid until the merger.

Subsection 4. In the event of the termination of the credit institution, the savings bank reserve is used for public or charitable purposes in accordance with detailed rules established in the decision pursuant to Section 211.

Section 213. In addition to the provisions set forth in Section 201, 10 percent of the part of the year's profit that is not used to cover deficits from previous years must be allocated annually to the restricted savings bank reserve, pursuant to Section 211. If the allocation would exceed a return on the savings bank reserve corresponding to the interest rate set in subsection 2, less a proportional share of the year's corporate tax, only an amount corresponding to this return is allocated.

Subsection 2. The Danish Financial Supervisory Authority establishes rules for the calculation of the interest rate that applies pursuant to subsection 1.

Mortgage Funds and Mortgage Associations that have been Mortgage Institutions

Section 214. Funds that have been mortgage institutions, and funds that are established in connection with the conversion of mortgage institutions into joint-stock companies, are covered by the Act on Commercial Foundations.

Subsection 2. Despite the fact that a mortgage joint-stock company is wound up pursuant to Sections 226 and 227 and is not considered to be continued, the fund, pursuant to subsection 1, is still considered to be a commercial foundation. Changes to the fund's articles of association that are necessary pursuant to the Act on Commercial Foundations must be approved by the Danish Business Authority, which is the foundation authority.

Section 214a. Associations that have been mortgage institutions are covered by the Act on Certain Commercial Enterprises, pursuant to Section 1a of the Act.

Section 215. (Repealed)

Section 216. A fund or association that has been a mortgage institution, and a fund that is established in connection with the conversion of a mortgage institution into a joint-stock company, must be managed by a board of at least 5 members if the fund or association owns the mortgage joint-stock company.

Subsection 2. The members of the association or the borrowers in the mortgage joint-stock company, respectively, the holders of mortgage bonds and other financial instruments issued by the mortgage joint-stock company, each elect one or more members of the board of the fund or association covered by subsection 1. These members must together constitute more than half of the board. Members elected by the holders of mortgage bonds and other financial instruments may not constitute more than half of the board.

Subsection 3. The following groups of persons may not together or individually appoint or constitute a majority of the board of the fund or association mentioned in subsection 1:

Members of the board, representative bodies or similar representative organs, and employees of the mortgage joint-stock company.
Members of the board, the representative body or similar representative organs, and employees of the fund's or association's subsidiaries or associated undertakings.
Shareholders in the mortgage joint-stock company, if their voting rights directly or indirectly constitute at least 5 percent of the voting rights of the share capital, or if their shareholding in the mortgage joint-stock company has a nominal value that directly or indirectly constitutes at least 5 percent of the share capital.

Subsection 4. The chairman of the board of the mortgage joint-stock company may not simultaneously be a member of the board of the fund or association mentioned in subsection 1.

Subsection 5. If the fund or association mentioned in subsection 1 does not own other assets than mortgage bonds and similar items or capital instruments issued by financial enterprises or financial holding companies in the group, which at the time of acquisition formed part of the relevant company's equity capital or core capital, subsections 3 and 4 do not apply. In such cases, at least 1 member of the board of the fund or association may not simultaneously be a member of the board of or employed by the mortgage joint-stock company or in other companies in the group.

Section 217. (Repealed)

Section 218. (Repealed)

Section 219. In the event of the winding up of an association that has been a mortgage institution, the equity capital may not be distributed to the association's members.

Section 220. Mortgage institutions that have been converted into joint-stock companies under the encapsulation model may use the restricted fund reserve to cover deficits that are not covered by amounts that can be used for dividends in the joint-stock company.

Subsection 2. Upon the merger of the mortgage institution pursuant to Section 204, the continuing company assumes the fund reserve on the same terms that were valid until the merger.

Subsection 3. In the event of the termination of the mortgage institution, the fund reserve is used for public or charitable purposes in accordance with detailed rules established in the conversion decision. Distribution to shareholders may only take place when the obligations in the first sentence are fulfilled.

Section 221. Mortgage institutions that have been converted into joint-stock companies under the encapsulation model must allocate 10 percent of the year's profit, which is not used to cover deficits from previous years, to the fund reserve. If the allocation would exceed the return on the fund reserve corresponding to the interest rate established by the Danish Financial Supervisory Authority pursuant to Section 213, subsection 2, less a proportional share of the year's corporate tax, only an amount corresponding to this return is allocated.

Section 222. (Repealed)

Chapter 15
Termination
Withdrawal of Permission

Section 223. The Danish Financial Supervisory Authority may withdraw permission to conduct business as a credit institution, mortgage institution, and investment management company, as well as securities dealer, if the business so requests.

Section 224. The Danish Financial Supervisory Authority may further withdraw permission to conduct business as a credit institution, mortgage institution, and investment management company,

if the financial business is guilty of serious or repeated violations of this Act, the Money Laundering Act, the Capital Markets Act, or the Act on Mortgage Loans and Mortgage Bonds and similar items, regulations issued pursuant to these Acts, Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions, regulations and rules issued pursuant to Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions, regulations issued pursuant to Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, or Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments, or Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on markets in crypto-assets,
if the financial business does not meet the requirements for obtaining permission, including the requirements in Chapter 3, subject to Section 126a, subsection 2, items 1 and 2, and Article 93, subsections 1 and 2, of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions,
if business as financial business is not commenced within 12 months after the Danish Financial Supervisory Authority has granted the business permission,
if financial business is not conducted for a period of more than 6 months,
if the credit institution exclusively uses its permission to perform activities covered by Section 5, subsection 1, item 2, letter b, and for a period of 5 consecutive years has average total assets that lie below the thresholds set in Section 5, subsection 1, item 2, letter b, items i-iii, or
if the conditions in Section 4, subsection 1, items 1 and 2, of the Act on Restructuring and Winding Up of Certain Financial Businesses are met, but the condition in Section 4, subsection 1, item 3, of the same Act is not met.

Subsection 2. If an investment management company has permission as a securities dealer pursuant to the Act on Securities Brokerage Companies and Investment Services and Activities, the permission as a securities dealer may be withdrawn if the conditions in subsection 1, items 1-4, are met.

Subsection 3. If a credit institution or mortgage institution has permission to issue covered bonds, the permission may be withdrawn if

the credit institution is guilty of serious or repeated violations of Sections 152a-152g or regulations established pursuant to Section 16a, subsection 4, or Section 152h,
the mortgage institution is guilty of serious or repeated violations of Sections 33a-33e of the Act on Mortgage Loans and Mortgage Bonds and similar items, or regulations established pursuant to Section 16a, subsection 4, of this Act or Section 33f of the Act on Mortgage Loans and Mortgage Bonds and similar items, or
the issuance of covered bonds has not commenced within 12 months after the Danish Financial Supervisory Authority has granted the institution permission.

Subsection 4. If a credit institution or a mortgage institution does not meet the liquidity coverage requirement in Article 412, subsection 1, or the net stable funding ratio in Article 413, subsection 1, of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions, and has not provided the prescribed liquidity or funding within a deadline set by the Danish Financial Supervisory Authority, the Danish Financial Supervisory Authority may withdraw the permission. The Danish Financial Supervisory Authority may extend the deadline if the Danish Financial Supervisory Authority deems this necessary.

Subsection 5. The Danish Financial Supervisory Authority may suspend an investment management company's permission to conduct business if the conditions in subsection 1, items 1-4, are met.

Section 224a. A credit institution or a mortgage institution is considered non-performing or likely non-performing if

the business violates, or if there are objective indicators to support that the business in the near future will violate, the requirements to maintain its permission in a manner that makes it possible for the Danish Financial Supervisory Authority to withdraw the permission pursuant to Section 224, subsection 1, item 1 or item 2, or Section 225, subsection 1, or Section 350, subsection 2,
there are objective indicators to support a finding that the business in the near future will be unable to pay its debts or other obligations as they fall due, and the Danish Financial Supervisory Authority can therefore withdraw the permission pursuant to Section 224, subsection 4, or
the business receives extraordinary financial support from the public, unless the support is given to avoid or remedy a serious disturbance to the Danish economy and to maintain financial stability and takes one of the following forms:
a) State guarantee to cover liquidity facilities provided by Danmarks Nationalbank. b) State guarantee for recently issued obligations. c) Injection of capital base or purchase of capital instruments to handle a capital shortage that has been identified in national stress tests or stress tests conducted at the EU level.

Subsection 2. A group is considered non-performing or likely non-performing when the group at consolidated level is in one of the situations mentioned in subsection 1.

Subsection 3. The Financial Supervisory Authority makes a decision that a credit institution, a mortgage credit institution, or a group is distressed or expected to become distressed, after hearing Financial Stability.

Section 225. If a credit institution, a mortgage credit institution, or an investment management company does not meet the capital requirements in Article 92(1) and Articles 93, 97, and 500 of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions, Section 124(3) and (8), and Section 126a(2)-(7), and has not raised the required capital within a deadline set by the Financial Supervisory Authority, the Financial Supervisory Authority shall withdraw the authorization, subject to Subsections 2, 5, and 6.

Subsection 2. A credit institution or a mortgage credit institution that meets the capital base requirement under Article 92(1) and the minimum capital requirement in Article 93 of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions, but does not meet the individual solvency requirement established pursuant to Section 124(3) or Article 500 of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions, must take the necessary measures to comply with this solvency requirement. The Financial Supervisory Authority may order the institution to take the necessary measures within a deadline set by the Financial Supervisory Authority, which may be extended. The Financial Supervisory Authority may continuously set additional measures if deemed necessary. The Financial Supervisory Authority may set a deadline pursuant to Subsection 1 for compliance with the individual solvency requirement established pursuant to Section 124(3) or Article 500 of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions, after which the authorization shall be withdrawn pursuant to Subsection 1 if the institution does not take the necessary measures after the second and third sentences.

Subsection 3. If the raising of capital requires the convening of the highest authority of the credit institution, mortgage credit institution, or investment management company, the Financial Supervisory Authority may determine that the convening may take place with a shorter deadline than that specified in the articles of association.

Subsection 4. If a group covered by Sections 171-174 does not meet the solvency requirement in the relevant provisions and has not raised the required capital within a deadline set by the Financial Supervisory Authority, the Financial Supervisory Authority may withdraw the authorization of the credit institution, mortgage credit institution, or investment management company, subject to Subsections 5 and 6.

Subsection 5. The Financial Supervisory Authority sets the deadline in Subsections 1, 2, and 4 taking into account the nature of the case and the specific circumstances. The deadline may be extended if the Financial Supervisory Authority deems it necessary.

Subsection 6. The Financial Supervisory Authority may refrain from withdrawing the authorization pursuant to Subsections 1, 2, and 4 when considerations of appropriate crisis management or resolution speak in favor of this.

Resolution

Section 226. When the Financial Supervisory Authority withdraws the authorization of a credit institution, mortgage credit institution, or investment management company pursuant to Section 223, Section 224(1) and (2), and Section 225, the business shall be wound up, and no other business may be commenced until the winding up is completed.

Subsection 2. When the Financial Supervisory Authority withdraws the authorization pursuant to Section 224(2), the business that the investment management company no longer has authorization for shall be wound up. The Financial Supervisory Authority may set a deadline within which the winding up must be carried out.

Section 227. Winding up, pursuant to Section 226, takes place through liquidation or bankruptcy or through merger pursuant to Section 204. If the winding up takes place in another manner, the Financial Supervisory Authority must approve the form, content, and implementation of the winding up.

Section 227a. In the event of the winding up of a credit institution that issues covered bonds, the Financial Supervisory Authority must cooperate with Financial Stability to ensure the preservation of the rights and interests of investors in covered bonds, including by at least supervising the ongoing and prudent management of the covered bond program during the resolution process.

Section 228. The Financial Supervisory Authority may set a deadline for the adoption of a decision on liquidation pursuant to Section 217 of the Companies Act. If the deadline is exceeded, the Financial Supervisory Authority may decide that the financial business shall enter liquidation.

Subsection 2. A decision on the winding up of a financial business must be communicated immediately to the Financial Supervisory Authority.

Sections 229-230a. (Repealed)

Special rules on liquidation and bankruptcy

Section 231. A credit institution, a mortgage credit institution, or an investment management company is liquidated by one or more liquidators appointed by the Minister of Industry and Business. One of the liquidators must be a lawyer.

Section 232. The Financial Supervisory Authority may suspend the articles of association of a financial business during the liquidation.

Subsection 2. Accounts prepared in connection with liquidation must be submitted to the Financial Supervisory Authority.

Section 233. A petition for bankruptcy of a financial business that is under liquidation may only be submitted by the liquidators or the Financial Supervisory Authority.

Section 234. The Financial Supervisory Authority may submit a petition for bankruptcy when a financial business becomes insolvent. The Financial Supervisory Authority's decision to submit a petition for bankruptcy cannot be appealed pursuant to Section 372.

Subsection 2. Notwithstanding Section 17(2) of the Bankruptcy Act, credit institutions or mortgage credit institutions that do not fulfill their obligations with regard to subordinated capital raised as hybrid core capital or as supplementary capital instruments are not considered insolvent. The same applies to other financial businesses covered by this Act, if they do not fulfill their obligations with regard to subordinated capital raised as hybrid core capital or as liable loan capital.

Subsection 3. After the pronouncement of the bankruptcy decree, the bankruptcy court appoints one or more trustees after consultation with the Financial Supervisory Authority. One of the trustees must be a lawyer.

Section 234a. (Repealed)

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Section 235. The Financial Supervisory Authority has the right to participate in meetings of the creditors' committee and in the creditors' meeting. The draft final account and final distribution in the bankruptcy estate must be submitted by the trustee to the Financial Supervisory Authority for comment before the trustee submits it to the bankruptcy court.

Section 236. If a savings bank or a cooperative bank is declared bankrupt, the trustee gives notice to the Danish Business Authority and the Financial Supervisory Authority of the beginning and end of the bankruptcy.

Section 237. (Repealed)

Reconstruction proceedings

Section 238. The Financial Supervisory Authority may submit a petition for reconstruction proceedings for financial businesses when the interests of depositors, bondholders, investors, or policyholders so require.

Subsection 2. A petition for reconstruction proceedings pursuant to Subsection 1 is accompanied by the Financial Supervisory Authority's proposal for who should be appointed as the reconstruction administrator and the trustee during the reconstruction proceedings, as well as a declaration from the relevant parties stating that they are willing to do so and meet the conditions in Section 238 of the Bankruptcy Act.

Section 239. (Repealed)

Section 240. The provisions of this Act or of regulations issued pursuant to this Act regarding the powers of the Minister of Industry and Business and the Financial Supervisory Authority and the obligations of financial businesses towards the Minister of Industry and Business and the Financial Supervisory Authority apply with the necessary adjustments to such businesses that are under reconstruction proceedings or dissolution.

Section 241. Chapter 14 of the Companies Act applies with the necessary adaptations to savings banks and cooperative banks.

Section 242. The Minister of Industry and Business sets rules with a view to fulfilling EU legal rules on the rehabilitation and liquidation of credit institutions and insurance companies.

Section 242a. (Repealed)

Section 243. The Financial Supervisory Authority may, according to the procedures established in EU legal rules on this matter, prohibit a foreign credit institution, finance company, or investment management company covered by Section 30(1) and Section 31(1), with its home country in another country within the European Union or in a country with which the Union has concluded an agreement in the financial sector, from conducting business in this country through a branch or by providing services in this country. The Financial Supervisory Authority may prohibit the businesses mentioned in the first sentence from conducting business as mentioned in the first sentence if the business has grossly or repeatedly violated provisions in this Act, regulations issued pursuant to the Act, or other legislation directed at the credit institution, finance company, or investment management company, and it has not been possible to bring the violation to an end through orders or sanctions under this Act.

Chapter 15a
Early Intervention

Special rules for credit institutions and mortgage credit institutions

Section 243a. If a credit institution or a mortgage credit institution violates or it is predominantly likely that it will violate in the near future due to a significant or rapid deterioration of the business's financial situation, the requirements set out in this Act, regulations issued pursuant to the Act, or Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions, Title II of Directive 2014/65/EU on markets for financial instruments, or Articles 3-7, 14-17, and 24-26 of Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets for financial instruments, the Financial Supervisory Authority may order the business to take one or more of the measures in Subsections 2 and 3 within a deadline set by the Financial Supervisory Authority. The Financial Supervisory Authority may extend the deadline if deemed necessary.

Subsection 2. The Financial Supervisory Authority may, pursuant to Subsection 1, order the business to:

initiate or update its recovery plan, which is prepared in accordance with Sections 71a and 71b,
prepare and submit an action plan to the Financial Supervisory Authority,
convene the business's highest authority,
one or more members of the board of directors or management shall resign from their positions, pursuant to Section 64,
prepare and submit a plan for negotiations on the restructuring of the business's debt,
change its business strategy,
change its legal or operational structure, and
contact potential buyers with a view to preparing a winding up of the business.

Subsection 3. When convening the business's highest authority, pursuant to Subsection 2, item 3, the Financial Supervisory Authority sets the agenda. Sections 90 and 91 of the Companies Act do not apply to convenings pursuant to the first sentence. If a business does not comply with an order pursuant to Subsection 2, item 3, the Financial Supervisory Authority may, on behalf of the business, convene the business's highest authority and set the agenda for this. Sections 89-91 and 93 of the Companies Act do not apply to convenings pursuant to the third sentence.

Section 243b. The Financial Supervisory Authority may order one or more members of the board of directors or management of a credit institution or a mortgage credit institution to resign from their positions if the business's financial situation deteriorates significantly or if there are one or more serious violations of financial legislation.

Subsection 2. The Financial Supervisory Authority may use Subsection 1 if the orders in Section 243a are not assessed as sufficient to restore the business's financial situation.

Subsection 3. The appointment of a new management, board of directors, or members thereof must take place in accordance with this Act, regulations issued pursuant to the Act, the Companies Act, regulations issued pursuant to the Companies Act, and the business's articles of association.

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Temporary Administrator

Section 243c. The Financial Supervisory Authority may order a credit institution or a mortgage credit institution to appoint one or more temporary administrators, pursuant to Subsection 2 or 3, if the credit institution's or mortgage credit institution's financial situation deteriorates significantly or if there are one or more serious violations of financial legislation and it is assessed that an order pursuant to Section 243b is not sufficient to restore the business's financial situation.

Subsection 2. The Financial Supervisory Authority may, pursuant to Subsection 1, order the business to:

the temporary administrator takes the place of the entire board of directors, or
the temporary administrator assists the board of directors in its work.

Subsection 3. The provisions of this Act and the Companies Act regarding a business's board of directors apply with the necessary adaptations to a temporary administrator who takes the place of the board of directors, pursuant to Subsection 2, item 1.

Subsection 4. At the time of the appointment of a temporary administrator who takes the place of the entire board of directors, the board of directors resigns, and the temporary administrator is granted signing and representation rights in accordance with Section 135 of the Companies Act and the business's articles of association.

Subsection 5. No later than at the time of the order, pursuant to Subsection 1, the Financial Supervisory Authority must have established the detailed framework for the temporary administrator's work, including which decisions the temporary administrator must submit to the Financial Supervisory Authority for approval. Convening the business's highest authority always requires the Financial Supervisory Authority's prior approval. The Financial Supervisory Authority may continuously change the framework for the temporary administrator's work if the Financial Supervisory Authority deems it necessary to restore the business's financial situation. The Financial Supervisory Authority may decide that the temporary administrator must report to the Financial Supervisory Authority.

Subsection 6. A temporary administrator is appointed for a period of up to 1 year. This period may be extended by the Financial Supervisory Authority in special cases. The Financial Supervisory Authority must justify an extension to the business's shareholders. A temporary administrator, pursuant to Subsections 2 and 3, may be dismissed by the Financial Supervisory Authority at any time. Section 82 of this Act and Section 120 of the Companies Act do not apply to a temporary administrator who takes the place of the entire board of directors, and the business's highest authority cannot dismiss a temporary administrator. Section 121(1) of the Companies Act does not apply to the temporary administrator, who must give the Financial Supervisory Authority a warning of at least 2 months before a planned withdrawal.

Subsection 7. The Financial Supervisory Authority ensures that the temporary administrator is independent and possesses the necessary competencies to perform the task.

Subsection 8. A temporary administrator who, in the performance of their duties, intentionally or with gross negligence causes loss to the business, must compensate for this loss. The same applies when the damage is caused to shareholders or third parties. The Financial Supervisory Authority cannot be held liable for the temporary administrator's actions and omissions under the general rules of Danish law on compensation.

Subsection 9. The provision in Section 117 applies correspondingly to a temporary administrator.

Subsection 10. The Financial Supervisory Authority may set detailed rules regarding the temporary administrator.

Section 243d. An order from the Financial Supervisory Authority pursuant to Sections 243a-243c does not in itself constitute a ground for satisfaction or insolvency proceedings as defined in Section 5, item 7, of the Capital Markets Act, provided that the affected business continues to fulfill the contract's essential material obligations, including payment and delivery obligations and requirements for collateral.

Subsection 2. If the affected business continues to fulfill the contract's essential obligations, including payment and delivery obligations and requirements for collateral, an order pursuant to Sections 243a-243c or measures directly connected thereto will not in itself entitle the business's contractual partner to:

terminate, suspend, modify, net, or set off against the contract,
take possession of, exercise control over, or seek satisfaction in any asset belonging to the business, or
exercise influence on the business's contractual rights otherwise.

Subsection 3. Subsections 1 and 2 apply correspondingly to contracts entered into by a subsidiary, provided that the parent company or another company in the group guarantees or supports the subsidiary's obligations, and to contracts entered into by a group-affiliated company that contains provisions on cross-default.

Subsection 4. Subsections 1-3 apply correspondingly where an order corresponding to an order pursuant to Sections 243a-243c has been initiated in a country outside the European Union, with which the Union has not concluded an agreement in the financial sector.

Chapter 16
Crisis Management

Section 244. The Minister of Industry and Business must establish a valuation board, pursuant to Section 245, which in connection with a tax-free merger or transfer of assets between credit institutions as a result of a credit institution no longer meeting the requirements in Article 92(1) and Articles 93 and 500 of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions or being in close risk thereof, may set the tax value on the merger date of the loans and guarantees etc. in the distressed credit institution. Similarly, the board may make a decision on the tax value of loans and guarantees etc. at the time of transfer in connection with a taxable transfer, where the transfer takes place as part of the winding up of a distressed credit institution. The board may only make a decision upon request from one of the involved credit institutions.

Section 245. The valuation board must consist of 3 members. The Minister of Industry and Business appoints, after agreement with the Minister of Tax,

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The Minister appoints the members and substitutes of the Board. The members and substitutes are appointed for a period of 4 years.

Subsection 2. The Chairman of the Board must represent legal, economic, or accounting expertise, and the other members must have special expertise in the valuation of assets and liabilities.

Subsection 3. The Minister for Business Affairs sets detailed rules regarding payment for the Board's decisions.

Subsection 4. The Board must make a decision no later than 5 days after the Board has received a sufficient basis for a decision.

Subsection 5. The Board's decisions cannot be brought before a higher administrative authority and must be taken into account by the tax authorities in their assessment.

Subsection 6. The Minister for Business Affairs may, in agreement with the Minister of Taxation, set rules for the Board's operations.

§ 245 a. A credit institution and a mortgage credit institution, as well as subsidiaries thereof, shall, upon request from the Financial Supervisory Authority or Financial Stability, submit the necessary statements and information to the Financial Supervisory Authority and Financial Stability:

for use in an assessment of whether the business is non-performing or expected to become non-performing, cf. § 224 a,
for use in the exercise of the powers in §§ 243 a-243 c, or
for use in the exercise of the write-down and conversion power, cf. § 272.

Subsection 2. The statements and information mentioned in subsection 1 shall be submitted no later than 12 hours after the close of business. Balance sheets for mortgage credit institutions, however, shall be submitted no later than 24 hours after the close of business.

Subsection 3. A credit institution and a mortgage credit institution must have effective procedures and systems that ensure that the submission of information according to subsection 1 can take place within the set deadlines in subsection 2, and that restructuring and resolution, cf. the Act on Restructuring and Resolution of Certain Financial Undertakings, can be carried out effectively.

Subsection 4. The Financial Supervisory Authority may order a credit institution and a mortgage credit institution to prepare a register of financial contracts that the business has entered into.

Subsection 5. Subsections 1-3 apply with the necessary adaptations to mixed holding companies, financial holding companies, and finance companies, if the finance company is one subsidiary of a credit institution, a mortgage credit institution, a financial holding company, a mixed holding company, or a credit institution that has been granted permission in a country within the European Union or in a country with which the Union has concluded an agreement in the financial area, and the finance company is included in the supervision of the parent company on a consolidated basis. The first sentence applies only to financial holding companies that have at least one subsidiary that is a credit institution or a mortgage credit institution.

Subsection 6. The Financial Supervisory Authority may, after hearing Financial Stability, set detailed rules on which statements and information the business must provide, including requirements for the register of financial contracts, and which measures and systems are necessary to ensure this, rules on measures and systems necessary to ensure the effective implementation of restructuring and resolution, cf. the Act on Restructuring and Resolution of Certain Financial Undertakings, and derogations from subsections 1-3.

§ 245 b. Credit institutions, mortgage credit institutions, mixed holding companies, and financial holding companies shall notify the Financial Supervisory Authority of the names and identification numbers (CVR numbers) of Danish businesses in the form of CVR numbers for the finance companies that are subsidiaries of the respective businesses and are included in the Financial Supervisory Authority's consolidated supervision of the group. The first sentence applies only to financial holding companies that have at least one subsidiary that is a credit institution or a mortgage credit institution.

Subsection 2. Subsection 1 applies correspondingly to finance companies located in Denmark that are subsidiaries of the businesses referred to in subsection 1, but where the consolidated supervision of the group is located in another country within the European Union or countries with which the Union has concluded an agreement in the financial area.

§ 245 c. The Financial Supervisory Authority shall assess whether a credit institution is able to repay a deposit, if the Financial Supervisory Authority is satisfied that the credit institution has not paid out a deposit that is directly connected to the credit institution's financial situation and which has become due for payment.

Subsection 2. The assessment shall be made as soon as possible and no later than 5 working days after it has been proven to the Financial Supervisory Authority that a deposit covered by subsection 1 has not been repaid.

Subsection 3. The Financial Supervisory Authority shall immediately notify the Deposit Guarantee Fund if the Financial Supervisory Authority finds that a credit institution cannot repay a deposit for reasons directly connected to the credit institution's financial situation, and the credit institution has no immediate prospect of being able to repay the deposit.

§ 246. If a credit institution does not meet the capital requirement in § 124, subsections 3 and 8, and Article 92(1), Article 93, and Article 500 of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions, and a deadline has been set by the Financial Supervisory Authority for the restoration of capital, cf. § 225, subsection 1, the board of directors may summon the credit institution's highest authority with 3 days' notice to decide on necessary measures to meet the requirements of this Act in accordance with § 124, subsections 3 and 8, and Article 92(1), Article 93, and Article 500 of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions. For credit institutions that are limited liability companies and whose shares are admitted to trading on a regulated market, the summons must, regardless of the provisions of the articles of association, be given with a notice of at least 3 weeks.

Subsection 2. The board of directors of the credit institution may, in the situation mentioned in subsection 1, transfer the credit institution's business wholly or partially to another credit institution, cf. however § 204, subsection 1, regarding the Minister for Business Affairs' approval. The agreement on the transfer must be conditional on this approval. The board of directors must simultaneously summon the credit institution's highest authority, cf. subsection 1. The board of directors must at the general meeting or in the savings bank's representative body account for the credit institution's situation and the agreement entered into. If a decision is made at the general meeting or in the savings bank's representative body on other measures that imply that the credit institution meets the capital requirement in § 124, subsections 3 and 8, and Article 92(1), Article 93, and Article 500 of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions, or on liquidation on terms that the Financial Supervisory Authority can approve, the agreement on transfer mentioned in the second sentence is annulled.

Subsection 3. The summons is sent to all known shareholders, partners, or in savings banks, members of the representative body. At the same time, there must be a public summons in accordance with § 67.

Subsection 4. No later than 24 hours before the holding of the general meeting or the savings bank's representative body meeting, the agenda and the complete proposals must be presented for review by the shareholders, partners, or in savings banks, members of the representative body at the credit institution's head office. For summons to a general meeting in credit institutions that are limited liability companies and whose shares are admitted to trading on a regulated market, cf. subsection 1, second sentence, §§ 95-98 of the Companies Act apply.

Subsection 5. A decision on measures in accordance with subsection 1 can, regardless of §§ 106 and 107 of the Companies Act, always be made with two-thirds of the represented capital. If half of the share capital is represented at the general meeting, a decision on measures can be made with a simple majority. In savings banks and cooperative banks, where the cooperative bank has statutory restrictions on voting rights or corresponding restrictions in the articles of association, a decision on measures in accordance with subsection 1 can always be made with two-thirds of the members present in the savings bank's representative body and in cooperative banks, the partners.

Subsection 6. The procedures mentioned in subsections 1-5 apply regardless of the provisions of the articles of association.

§ 247. If the credit institution has lost its equity capital, or is insolvent, or is expected to become insolvent, the board of directors may transfer the credit institution's business wholly or partially to another credit institution, cf. however § 204, subsection 1, regarding the Minister for Business Affairs' approval.

Subsection 2. The board of directors must simultaneously invite the shareholders, partners, or in savings banks, members of the representative body to an informative meeting regarding the disposition. This meeting must be held no later than 8 days after the decision, and the necessary costs thereof are borne by the taking-over credit institution, which has the right to participate in the meeting.

Subsection 3. The procedures mentioned in subsections 1 and 2 apply regardless of the provisions of the articles of association.

§ 247 a. If the Financial Supervisory Authority withdraws a credit institution's permission pursuant to § 224, subsection 1, no. 1 or 2, submits a petition for bankruptcy pursuant to § 234, subsection 1, or the credit institution is declared bankrupt upon petition by others, the Financial Supervisory Authority shall make a decision that the credit institution's repayment to holders of special covered bonds issued by the credit institution is taken under administration. The Financial Supervisory Authority may also, in situations covered by § 224, subsection 3, no. 1, make a decision that the credit institution's repayment to holders of special covered bonds issued by the credit institution is taken under administration. The Financial Supervisory Authority simultaneously appoints an administrator to jointly with any co-administrators manage the administration of the repayment to holders of special covered bonds.

Subsection 2. When a credit institution's repayment to holders of special covered bonds issued by the credit institution is taken under administration, the Financial Supervisory Authority shall ensure that the decisions on the initiation of the administration and the appointment of the administrator are registered or otherwise published in the Danish Business Authority. The administration estate must furthermore notify the borrowers that future payments regarding the individual borrower's services on the loan can only be made to the administration estate with releasing effect.

Subsection 3. The administration estate is an independent legal person.

Subsection 4. The administrator must meet the eligibility requirements corresponding to the requirements for trustees etc. in § 238, subsections 1 and 2 of the Bankruptcy Act. The administrator and any co-administrators must not be the same person as a trustee in a bankruptcy estate after the credit institution. The administrator and any co-administrators must not be employed in the same business as the trustee.

Subsection 5. The administrator may appoint one or more co-administrators with insight into matters that are relevant for the administration.

Subsection 6. Remuneration for the administrators and other expenses in connection with the administration are paid by the administration estate. The size of the remuneration is determined after negotiation with the Financial Supervisory Authority.

Subsection 7. The administration estate is subject to the supervision of the Financial Supervisory Authority. § 152 h, no. 4 and 6, apply to the administration estate.

Subsection 8. The provisions of this Act on the powers of the Minister for Business Affairs and the Financial Supervisory Authority and the duties of financial businesses towards the Minister for Business Affairs and the Financial Supervisory Authority apply with the necessary adaptations to the administration estate.

Subsection 9. If the administrator and any co-administrators do not already have a liability insurance that can be considered sufficient to cover the administration estate's liability for errors and omissions during the administration of the estate, the administrator must immediately after appointment take out such insurance.

Subsection 10. The administrator must immediately after appointment by taking out a usual surety insurance or in another similar manner secure the estate against loss. The size of the security must at all times correspond to 1 pct. of the value of the assets, however maximum 100 mio. DKK. In the period until an assessment of the value of the registered assets has been made according to § 247 b, subsection 3, the security must be calculated based on a value estimated by the administrator. The expense for the surety insurance is borne as an estate expense.

§ 247 b. At the beginning of the administration, the registered assets, cf. § 152 g, subsection 1, must immediately be handed over to the administration estate. The administration estate, through the administrator, must be entitled to dispose of these assets. As far as fund assets are concerned, this must be registered in a securities central, as far as rights to real estate are concerned, this must be registered in the land register, and as far as ships are concerned, this must be registered in a ship register.

Subsection 2. If a credit institution is declared bankrupt, the trustee immediately hands over the assets mentioned in subsection 1 to the administrator.

Subsection 3. The administrator must have the registered assets valued in accordance with rules set in accordance with § 152 h, no. 2.

Subsection 4. The credit institution continues to be liable for there being the necessary assets in the register, despite this being placed under administration. If it is found during the assessment according to subsection 3 that the value of the registered assets does not correspond to the value of the bonds, financial instruments, and loans according to § 152 b, subsection 1, for which the assets lie as security, the administrator must bring a claim against the credit institution for fulfillment of the register, so that the value of the assets corresponds to the value of bonds, financial instruments, and loans. Correspondingly, the administrator must bring a claim against the credit institution for fulfillment of the register if it is found at a time during the administration that there is under-coverage in the register. If the administrator transfers the whole or part of the register, the buyer cannot bring new claims against the credit institution if further under-coverage arises after the transfer. If only parts of the register are transferred, the credit institution continues to be liable for any under-coverage in the remaining part of the register. If the credit institution is declared bankrupt, the provisions of § 247 d apply.

Subsection 5. If it is found during the assessment of the registered assets that the administration estate is insolvent, the administrator must submit a petition for bankruptcy. The administrator must also submit a petition for bankruptcy if the administrator subsequently finds that the administration estate is insolvent. The administration estate is insolvent if it cannot fulfill its obligations as they fall due, unless the illiquidity is assumed to be only temporary.

Subsection 6. The administration estate cannot be concluded before the estate's obligations according to § 247 a and the registered assets covered by this paragraph are transferred, cf. § 247 g, a petition for bankruptcy has been submitted and the bankruptcy proceedings are concluded, or all the bonds for which the assets in the register lie as security are redeemed, and the financial instruments are terminated. If there are surplus funds in the estate at the conclusion, these must be returned to the credit institution or the credit institution under bankruptcy, cf. § 247 d, subsection 4.

Subsection 7. If a credit institution is declared bankrupt after the administration has begun, the bankruptcy has no effect on the administration estate.

Subsection 8. The administrator must manage the assets received from the credit institution and may demand at the credit institution, possibly with the help of the bailiff, all material necessary for the administration to be handed over.

§ 247 c. If a credit institution is declared bankrupt, or if a credit institution does not fulfill the obligation to provide supplementary security according to § 152 a, subsection 2, this cannot be claimed by the holders of the special covered bonds or by lenders according to § 152 b, subsection 1, as a reason for early fulfillment of payment obligations. It also does not deprive the borrowers, if loans have been granted on the basis of the special covered bonds, of their possible right to make full or partial fulfillment of the loan in accordance with the fulfillment terms that apply to the loan.

§ 247 d. If a credit institution is declared bankrupt, the assets in the register, including financial instruments, calculated after deduction of expenses for the administrator, are used to pay claims from the holders of the special covered bonds and counterparties on the financial instruments, for which the registered assets and agreements lie as a basis. Thereafter, loans that the credit institution has taken up according to § 152 b, subsection 1, are covered. Surplus funds enter the bankruptcy estate, cf. § 32 in the Bankruptcy Act.

Subsection 2. The individual holders of special covered bonds, counterparties on the financial instruments, and lenders according to § 152 b, subsection 1, cannot make claims against the estate. On the other hand, the administrator on behalf of the administration estate can register claims against the estate for what, after assessment, is missing to satisfy the holders of the special covered bonds, counterparties on the financial instruments, and lenders according to § 152 b, and claims on the interest that has accrued on the mentioned claims from the pronouncement of the bankruptcy decree, so that the bondholders, counterparties on the financial instruments, and lenders according to § 152 b can be satisfied.

Subsection 3. If the funds in the register are insufficient to satisfy the holders of the special covered bonds and counterparties on the registered financial instruments, as well as to cover debt that the credit institution has taken up according to § 152 b, subsection 1, the administrator may at the conclusion of the administration estate register uncovered remaining claims in the credit institution's bankruptcy estate as simple claims.

Subsection 4. Any surplus funds in a register cannot be transferred to other registers, but must be transferred to the bankruptcy estate.

Subsection 5. Set-off from a creditor as referred to in § 42 of the Bankruptcy Act cannot take place to fulfill a claim that belongs to the credit institution and concerns loans taken up on the basis of special covered bonds issued by the credit institution.

§ 247 e. The proceeds from loans that credit institutions have taken up according to § 152 b, subsection 1, and which do not enter a register, must in the event of the credit institution's bankruptcy serve to cover holders of the special covered bonds and counterparties on the financial instruments in the register to which the loans were taken up. Any surplus funds must be paid out to the lender.

§ 247 f. Holders of bonds that have lost the designation of special covered bonds, cf. § 152 a, subsection 5, first sentence, and counterparties on the registered agreements on financial instruments, for which the registered assets and agreements lie as a basis, retain the bankruptcy legal position that is assigned to holders of special covered bonds and financial

april 2026. 82 Nr. 432.

counterparties, cf. Section 247 d, subsection 1, first sentence. The same applies to loans taken by the credit institution in accordance with Section 152 b, subsection 1.

Subsection 2. Any remaining claims shall be reported by the administrator in the bankruptcy estate of the credit institution as simple claims.

Subsection 3. The provisions in Section 152 a, subsection 1, first sentence, Sections 152 b-152 h and Sections 247 a-247 e apply mutatis mutandis to bonds that have lost the designation of special covered bonds, cf. Section 152 a, subsection 5, as well as financial instruments linked thereto.

Section 247 g. The administrator shall, after the registered assets have been assessed, cf. Section 247 b, subsection 3, work towards the transfer of the estate's obligations in accordance with Section 247 a and registered assets covered by Section 247 b to a credit institution that has been granted permission in a country within the European Union or in a country with which the Union has concluded an agreement in the financial sector, and which has permission to issue special covered bonds as defined in Annex VI, Part 1, points 68-71, of the Directive on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms.

Subsection 2. If the administrator cannot transfer the estate's obligations in accordance with Section 247 a and the registered assets covered by Section 247 b, the administrator shall continue to administer the estate in accordance with the terms of Section 247 h, unless the conditions for filing a petition for bankruptcy are met, cf. Section 247 b, subsection 5. The administrator shall, however, continue to work towards transfer in accordance with subsection 1.

Subsection 3. The transfer of the entire or part of the estate's obligations in accordance with Section 247 a and registered assets covered by Section 247 b to another credit institution, cf. subsection 1, shall be approved by the Minister for Business Affairs. This does not apply, however, if only individual assets are sold in accordance with Section 247 h, subsection 3.

Subsection 4. Unless the Minister for Business Affairs, on the basis of the available grounds, finds that the transfer should not be approved, the Financial Supervisory Authority shall publish a statement regarding the intended transfer in the Official Gazette and in nationwide newspapers. The statement shall contain a call for the affected bondholders to notify the Financial Supervisory Authority in writing within a deadline set by the Financial Supervisory Authority, which must not be shorter than 1 month, that they have objections to the transfer. The administrator shall simultaneously send notice of the intended transfer and the statement to the bondholders whose addresses are known to the administrator.

Subsection 5. After the expiry of the deadline in subsection 4, the Minister for Business Affairs shall, taking into account the objections raised, make a decision on whether the register can be transferred in accordance with the proposal submitted.

Subsection 6. The transfer cannot be invoked by the owners of the special covered bonds as a reason for early repayment of payment obligations.

Section 247 h. The administrator may issue bonds for refinancing of special covered bonds that are maturing. The bonds are named refinancing bonds and must not be named special covered bonds. The refinancing bonds obtain security in the asset mass in the administration estate in the same way as the special covered bonds they replace. The administrator may not issue refinancing bonds if, after the issuance, it is not expected that there will be sufficient funds in the estate to pay interest and principal to holders of special covered bonds, any refinancing bonds, and counterparties on financial instruments. The administrator may also enter into agreements on financial instruments for hedging purposes.

Subsection 2. The administrator may take out short-term loans to cover temporary liquidity deficits in the administration estate arising from a lack of temporal coincidence between payments to the estate from borrowers and payments from the estate to bondholders. The proceeds from such loans may only be used to pay interest and principal to the owners of the special covered bonds and any refinancing bonds.

Subsection 3. The administrator may sell assets from the estate for use in covering temporary liquidity deficits in the administration estate arising from a lack of temporal coincidence between payments to the estate from borrowers and payments from the estate to bondholders. The sale of assets may only take place to a limited extent and at a minimum price set in advance.

Subsection 4. If the administrator finds that the possibilities in subsections 1-3 are not sufficient and that full timely repayment to the holders of special covered bonds cannot take place, the administrator shall postpone the maturity date of the special covered bonds in accordance with Section 152 b, subsections 4-6.

Section 247 i. If the administration estate is subject to bankruptcy proceedings, the estate shall be handled in accordance with the rules of the Bankruptcy Act, cf. however subsection 2.

Subsection 2. The assets in the administration estate, including financial instruments, calculated after deduction of expenses for the administrator, shall be used in equal proportion to pay claims from the holders of the special covered bonds, counterparties on the financial instruments on which the registered assets and agreements are based, holders of any refinancing bonds issued by the administrator in accordance with Section 247 h, subsection 1, and to cover loans that the administration estate has taken out in accordance with Section 247 h, subsection 2. Excess funds shall form part of the bankruptcy estate, cf. Section 32 of the Bankruptcy Act.

Sections 248-258. (Repealed)

Chapter 17
Resolution Planning
Resolution Plans

Section 259. The Financial Supervisory Authority shall prepare, adopt and maintain a resolution plan for a credit institution and a mortgage credit institution, cf. however Section 260. The resolution plan is adopted by the Financial Supervisory Authority upon recommendation from the Danish Financial Stability Council. The resolution plan shall

contain the resolution measures that are assessed to be applicable in the event of the undertaking's resolution, cf. Section 12 in the Act on Restructuring and Resolution of Certain Financial Undertakings,
take into account relevant scenarios, including that the failure of an undertaking may be due to specific conditions in the undertaking or be a consequence of a period of
16 April 2026. 83 No. 432.

general financial instability, including events affecting the entire financial system,
3) contain an analysis of how and when an undertaking on the conditions set out in the plan may request the use of central bank facilities and identify the assets that are expected to be regarded as collateral, and
4) contain models for how the resolution tools and powers referred to in the Act on Restructuring and Resolution of Certain Financial Undertakings may be applied to the undertaking.

Subsection 2. The resolution plan for mortgage credit institutions must not assume the use of bail-in, cf. Section 2, no. 4, in the Act on Restructuring and Resolution of Certain Financial Undertakings.

Subsection 3. The Financial Supervisory Authority may prepare, adopt and maintain a simplified resolution plan. The simplified resolution plan is adopted by the Financial Supervisory Authority upon recommendation from the Danish Financial Stability Council.

Subsection 4. The Financial Supervisory Authority shall maintain the resolution plan, cf. subsections 1 and 3, at least once a year. The resolution plan is adopted by the Financial Supervisory Authority upon recommendation from the Danish Financial Stability Council. The Financial Supervisory Authority may decide to deviate from the requirement to maintain the resolution plan at least once a year.

Subsection 5. The Financial Supervisory Authority shall, regardless of subsection 4, maintain the resolution plan when changes have occurred in the undertaking in question, including changes in the undertaking's legal or organizational structure, business activities or economic conditions, which necessitate a change in the undertaking's resolution plan. The resolution plan is adopted by the Financial Supervisory Authority upon recommendation from the Danish Financial Stability Council.

Subsection 6. The Financial Supervisory Authority may, after consulting the Danish Financial Stability Council, grant a derogation to a credit institution affiliated with a central institution, which is wholly or partially exempt from the supervisory requirements in accordance with Article 10 of the Regulation of the European Parliament and of the Council on supervisory requirements for credit institutions and investment firms. The Financial Supervisory Authority shall in such cases apply Section 260, subsection 1, on a consolidated basis to a central institution and its affiliated institutions as defined in Article 10 of the Regulation of the European Parliament and of the Council on supervisory requirements for credit institutions and investment firms. For the purpose of applying the second sentence, a group shall be understood as a central institution and its affiliated institutions in accordance with Article 10 of the Regulation of the European Parliament and of the Council on supervisory requirements for credit institutions and investment firms and their subsidiaries, and a parent undertaking or an undertaking subject to supervision on a consolidated basis shall be understood as the central institution.

Subsection 7. In preparing and maintaining a resolution plan in accordance with subsection 1 for a systemically important financial institution and a global systemically important financial institution, cf. Sections 308 and 310, the Financial Supervisory Authority shall consult Danmarks Nationalbank on the content of the resolution plan.

Subsection 8. The Financial Supervisory Authority and the Danish Financial Stability Council shall consult any resolution authorities in other countries within the European Union or in countries with which the Union has concluded an agreement in the financial sector, where significant branches are located, on the resolution plan.

Subsection 9. The Financial Supervisory Authority shall forward the final resolution plan to the Danish Financial Stability Council after adoption in accordance with subsection 1. For institutions covered by subsection 7, the resolution plan shall also be forwarded to Danmarks Nationalbank.

Subsection 10. The Minister for Business Affairs may lay down detailed rules on the preparation, content and maintenance of resolution plans as well as the division of work between the Financial Supervisory Authority and the Danish Financial Stability Council.

Section 259 a. A credit institution, a mortgage credit institution or a fund brokerage company I, for which a resolution plan has been prepared in accordance with Section 259, subsection 1, shall immediately inform the Financial Supervisory Authority of significant changes in the undertaking in question, including changes in the undertaking's legal or organizational structure, business activities or economic conditions.

Section 260. The Financial Supervisory Authority shall prepare, adopt and maintain a group resolution plan for groups where the ultimate parent undertaking is in Denmark, and where the parent undertaking is a credit institution, a mortgage credit institution, a mixed holding company or a financial holding company. The group resolution plans are adopted by the Financial Supervisory Authority upon recommendation from the Danish Financial Stability Council and in cooperation with the resolution authorities for the subsidiaries and after consulting any resolution authorities and competent authorities in other countries within the European Union or in countries with which the Union has concluded an agreement in the financial sector, where significant branches are located. The first sentence only applies to financial holding companies that have at least one subsidiary that is a credit institution or a mortgage credit institution.

Subsection 2. A group resolution plan shall contain concrete measures for the resolution of the group as a whole and the resolution of the undertakings and branches included in the group. The group resolution plan shall specify the resolution units and resolution groups in the relevant group. An intermediate financial holding company that directly or indirectly owns subsidiaries of a mixed holding company is a resolution unit.

Subsection 3. The group resolution plan shall be prepared in such a way that it does not result in a negative and disproportionately large impact on a country within the European Union or on a country with which the Union has concluded an agreement in the financial sector upon its implementation.

Subsection 4. Section 259 applies mutatis mutandis to group resolution plans.

Subsection 5. The Financial Supervisory Authority shall forward information received for use in the preparation of the group resolution plan to

the European Banking Authority,
the Danish Financial Stability Council,
the resolution authorities for the subsidiaries,
the resolution authorities in the countries where significant branches are located,
the relevant competent authorities, cf. Articles 115 and 116 of Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and on the prudential supervision of credit institutions and investment firms, and
16 April 2026. 84 No. 432.
the resolution authorities in the other countries within the European Union or in countries with which the Union has concluded an agreement in the financial sector, where a financial holding company or a mixed holding company is established.

Subsection 6. The Financial Supervisory Authority and the Danish Financial Stability Council shall assess together with the resolution authorities for the subsidiaries whether the group resolution plan meets the requirements set out in subsections 2-4 with a view to reaching a joint decision on the group resolution plan within 4 months after the Financial Supervisory Authority has forwarded the information as mentioned in subsection 5.

Subsection 7. The Financial Supervisory Authority shall make a decision on the group resolution plan, no later than 4 months after the Financial Supervisory Authority has forwarded information in accordance with subsection 5, if the Financial Supervisory Authority and the resolution authorities for the subsidiaries have not reached a joint decision, cf. subsection 6. The Financial Supervisory Authority shall notify the parent undertaking and the resolution authorities for the subsidiaries of the decision. If the resolution authority for a subsidiary has referred the matter to the European Banking Authority before the expiry of the 4-month period, the Financial Supervisory Authority shall postpone its decision until the decision from the European Banking Authority is available. The Financial Supervisory Authority shall thereafter make a decision in accordance with the decision from the European Banking Authority. If the European Banking Authority has not made a decision, no later than 1 month after the matter was referred, the Financial Supervisory Authority shall make a decision on the group resolution plan.

Subsection 8. The Minister for Business Affairs may lay down detailed rules on the preparation, content and maintenance of group resolution plans as well as the division of work between the Financial Supervisory Authority and the Danish Financial Stability Council.

Section 260 a. The Financial Supervisory Authority shall prepare, adopt and maintain a resolution plan, cf. Section 259, subsection 1, if the Financial Supervisory Authority and the Danish Financial Stability Council disagree on the proposal for a group resolution plan from the group resolution authority, and if the group resolution authority and the resolution authorities for the subsidiaries have not reached a joint decision on the group resolution plan, no later than 4 months after the group resolution authority has forwarded information received for use in the preparation of the group resolution plan. The first sentence applies when the Financial Supervisory Authority and the Danish Financial Stability Council are the resolution authority for a subsidiary in a group where the ultimate parent undertaking is in another country within the European Union or in a country with which the Union has concluded an agreement in the financial sector.

Subsection 2. The Financial Supervisory Authority shall inform the other members of the resolution college that the Financial Supervisory Authority has adopted a resolution plan in accordance with subsection 1.

Subsection 3. If a resolution authority has referred the matter to the European Banking Authority before the expiry of the 4-month period, the Financial Supervisory Authority shall postpone its decision in accordance with subsection 1 until the decision from the European Banking Authority is available. The Financial Supervisory Authority shall thereafter make a decision in accordance with the decision from the European Banking Authority. If the European Banking Authority has not made a decision, no later than 1 month after the matter was referred, the Financial Supervisory Authority shall make a decision on the resolution plan.

Section 261. The Financial Supervisory Authority may order an undertaking or a parent undertaking to assist in the preparation and maintenance of the undertaking's or group's resolution plan, cf. Sections 259 and 260, including ordering the undertaking or parent undertaking to submit all relevant information.

Section 261 a. The Financial Supervisory Authority may lay down detailed rules on the requirement for a credit institution and a mortgage credit institution to prepare a register of financial contracts entered into by the undertaking.

Assessment of Resolution Options

Section 262. The Financial Supervisory Authority and the Danish Financial Stability Council shall assess, in connection with the preparation of the resolution plan, cf. Section 259, whether there are significant obstacles to the resolution of an undertaking.

Subsection 2. For a systemically important financial institution and a global systemically important financial institution, cf. Sections 308 and 310, the Financial Supervisory Authority shall consult Danmarks Nationalbank on the assessment made by the Financial Supervisory Authority and the Danish Financial Stability Council in accordance with subsection 1.

Subsection 3. The Financial Supervisory Authority and the Danish Financial Stability Council shall consult any resolution authorities in other countries within the European Union or countries with which the Union has concluded an agreement in the financial sector, where significant branches are located, on the resolution plan.

Section 263. The Financial Supervisory Authority and the Danish Financial Stability Council shall assess, in connection with the preparation of the group resolution plan, cf. Section 260, whether there are significant obstacles to the resolution of a group.

Subsection 2. If the group includes a systemically important financial institution or a global systemically important financial institution, cf. Sections 308 or 310, Danmarks Nationalbank shall be consulted on the assessment in accordance with subsection 1.

Subsection 3. The assessment in accordance with subsection 1 shall be carried out in cooperation with the resolution authorities for the subsidiaries and after consulting the competent authorities for the subsidiaries and the resolution authorities in the countries where significant branches are located, if relevant for the relevant branch.

Power to Remedy and Remove Obstacles to Resolution

Section 264. If the Financial Supervisory Authority and the Danish Financial Stability Council, in the assessment of the resolution options for an undertaking, cf. Section 262, find that there are significant obstacles to the resolution of the relevant undertaking, the Financial Supervisory Authority shall notify the undertaking in writing and any resolution authorities in other countries within the European Union or countries with which the Union has concluded an agreement in the financial sector, where significant branches are located, thereof.

Subsection 2. The undertaking shall, no later than 4 months after it has received a notification in accordance with subsection 1, cf. however subsection 3, submit to the Financial Supervisory Authority proposals for possible measures with 16 April 2026. 85 No. 432.

with a view to remedying or removing the significant resolution obstacles that follow from the notification.

Subsection 3. The undertaking shall submit to the Financial Supervisory Authority proposals for possible measures and a timetable for the implementation of these measures, no later than 2 weeks after the undertaking has received a notification in accordance with subsection 1, with a view to remedying or removing the significant resolution obstacle in cases where the resolution obstacle is due to:

the undertaking being in a situation covered by Section 269 a, subsection 1,
the undertaking not meeting the requirement for write-down eligible liabilities, cf. Section 266, or
the undertaking, if it is a Global Systemically Important Financial Institution (G-SIFI) or part of a G-SIFI, not meeting the requirement for write-down eligible liabilities, cf. Article 92 a, cf. Article 494 of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions.

Subsection 4. The Financial Supervisory Authority and Financial Stability shall assess whether the undertaking's proposals for possible measures in accordance with subsections 2 and 3 effectively remedy or remove the significant resolution obstacles. If the Financial Supervisory Authority and Financial Stability assess that the undertaking's proposals effectively remedy or remove the significant resolution obstacles, the proposals shall be binding on the undertaking.

Subsection 5. If the Financial Supervisory Authority and Financial Stability assess that the measures proposed by an undertaking in accordance with subsection 2 or 3 do not effectively remedy or remove the significant resolution obstacles, the Financial Supervisory Authority may:

order the undertaking to review agreements on intra-group financial support or to reconsider the absence of such agreements and to draw up intra-group service agreements or service agreements with third parties to cover critical functions,
order the undertaking to limit its maximum individual and aggregate exposures,
in specific cases or on a regular basis by order require additional information relevant to resolution,
order the undertaking to divest certain assets,
order the undertaking to limit or discontinue existing or planned activities,
limit or prevent the development of new or existing business lines or the sale of new or existing products,
order that the undertaking or a subsidiary controlled by the undertaking either directly or indirectly be simplified through changes to its legal or operational structure to ensure that critical functions can be separated legally and operationally from other functions through the use of resolution tools,
order the undertaking to establish a financial holding company,
order the undertaking to submit a plan for meeting the requirement for write-down eligible liabilities and the combined capital buffer requirement,
order the undertaking to issue write-down eligible liabilities to meet the requirements in Section 266,
order the undertaking to take other measures to comply with the requirement for write-down eligible liabilities in accordance with Section 266,
order the undertaking to change the maturity profile of
a) capital instruments and b) write-down eligible liabilities, or
order the mixed holding company to establish a separate financial holding company to take over the management of the undertaking, if this is necessary to facilitate resolution and to avoid negative consequences for the non-financial part of the group from the use of the resolution tools and powers that follow from Chapter 4 of the Act on Restructuring and Resolution of Certain Financial Undertakings.

Subsection 6. The undertaking shall, within 1 month after notification of an order in accordance with subsection 5, submit to the Financial Supervisory Authority a plan for compliance therewith.

Subsection 7. The requirement for the Financial Supervisory Authority and Financial Stability to draw up resolution plans is suspended as a result of the notification referred to in subsection 1, until the measures, cf. subsections 2 and 3, or the orders, cf. subsection 5, have been implemented.

Subsection 8. The Minister of Business Affairs may lay down detailed rules on the orders listed in subsection 5 and the use thereof.

Section 264 a. If the Financial Supervisory Authority, after hearing Financial Stability, finds that there are obstacles to the resolution of an undertaking because other credit institutions or mortgage credit institutions hold write-down eligible liabilities in the undertaking, the Financial Supervisory Authority shall order the credit institution or mortgage credit institution to limit its maximum individual and aggregate exposures in the undertaking.

Subsection 2. Subsection 1 shall not apply in cases where the credit institution or mortgage credit institution is part of the same resolution group as the undertaking.

Section 265. If the Financial Supervisory Authority and Financial Stability, in an assessment of the resolution options for a group, cf. Section 263, find that there are significant obstacles to the resolution of the group in question, the Financial Supervisory Authority shall, following a proposal from Financial Stability, in cooperation with the European Banking Authority and after hearing the competent authorities, draw up and submit a report to:

the parent undertaking,
Financial Stability,
the resolution authorities of the subsidiaries, and
the resolution authorities in the countries where significant branches are located, if relevant for the branch in question.

Subsection 2. Section 264 shall apply mutatis mutandis to groups.

Subsection 3. The report in accordance with subsection 1 shall:

analyze significant obstacles to the effective use of resolution tools and the exercise of resolution powers in relation to the group and its resolution groups, cf. Chapter 4 of the Act on Restructuring and Resolution of Certain Financial Undertakings,
contain considerations regarding the consequences for the undertaking's business model, and
recommend proportionate and targeted orders, which in the opinion of the Financial Supervisory Authority are necessary or appropriate to remedy or remove the obstacles in question.

Subsection 4. The parent undertaking may, no later than 4 months after receiving the report drawn up in accordance with subsection 1, submit comments and proposals for alternative changes or orders to the Financial Supervisory Authority to remedy or remove the obstacles identified in the report from the Financial Supervisory Authority. The Financial Supervisory Authority shall communicate the parent undertaking's comments and proposals to Financial Stability, the European Banking Authority, and the authorities mentioned in subsection 1, items 3 and 4.

Subsection 5. The Financial Supervisory Authority shall, together with Financial Stability, review the parent undertaking's comments and proposals submitted in accordance with subsection 4, first sentence, with the resolution authorities of the subsidiaries to reach a joint decision on the use of orders under Section 264, subsection 5. The joint decision shall be available no later than 4 months after the Financial Supervisory Authority has received comments from the parent undertaking. If the Financial Supervisory Authority has not received comments from the parent undertaking, the joint decision shall be available no later than 1 month after the expiry of the deadline in subsection 4, first sentence.

Subsection 6. The Financial Supervisory Authority shall make a decision on the use of orders if the Financial Supervisory Authority and the resolution authorities of the subsidiaries have not reached a joint decision within the deadlines in subsection 5. The Financial Supervisory Authority shall notify the parent undertaking and the resolution authorities of the subsidiaries of this decision. If a resolution authority of a subsidiary has referred the case to the European Banking Authority before the expiry of the deadlines, the Financial Supervisory Authority shall postpone its decision until the decision from the European Banking Authority is available. The Financial Supervisory Authority shall thereafter make a decision in accordance with the decision from the European Banking Authority. If the European Banking Authority has not made a decision no later than 1 month after the case was referred, the Financial Supervisory Authority shall decide which orders shall apply.

Subsection 7. The parent undertaking shall, within 1 month after receiving a decision, cf. subsection 5 or 6, submit a plan for compliance with the orders.

Subsection 8. The Minister of Business Affairs may lay down detailed rules on the use of the orders listed in Section 264, subsection 5, for groups.

Section 265 a. If the Financial Supervisory Authority and Financial Stability find that there is a significant resolution obstacle for a group, cf. Section 265, because a group entity is in one of the situations covered by Section 264, subsection 3, items 1-3, the Financial Supervisory Authority shall notify the parent undertaking of its assessment after hearing the resolution authority of the resolution entity and the resolution authorities of the subsidiaries.

Subsection 2. The parent undertaking shall submit to the Financial Supervisory Authority proposals for possible measures and a timetable for the implementation of these measures no later than 2 weeks after receiving a notification in accordance with subsection 1, with a view to ensuring that the group entity complies with the requirement for write-down eligible liabilities, cf. Section 266, and, where applicable, the combined capital buffer requirement, cf. Section 125 a. The Financial Supervisory Authority shall communicate the parent undertaking's proposals to the European Banking Authority and the authorities mentioned in Section 265, subsection 1, items 3 and 4.

Subsection 3. The Financial Supervisory Authority and Financial Stability shall assess whether the parent undertaking's proposals in accordance with subsection 2 effectively remedy or remove the resolution obstacle in question.

Subsection 4. The Financial Supervisory Authority shall, together with Financial Stability, review the parent undertaking's proposals in accordance with subsection 2 with the resolution authorities of the subsidiaries to reach a joint decision on the use of orders, cf. Section 264, subsection 5. This shall be done no later than 2 weeks after the Financial Supervisory Authority has received the parent undertaking's proposals and timetable.

Subsection 5. The Financial Supervisory Authority shall make a decision on the use of orders, cf. Section 264, subsection 5, if the Financial Supervisory Authority and the resolution authorities of the subsidiaries have not reached a joint decision within the deadline, cf. subsection 4. The Financial Supervisory Authority shall notify the group's parent undertaking and the resolution authorities of the subsidiaries of this decision. If a resolution authority of a subsidiary has referred the case to the European Banking Authority before the expiry of the deadline in subsection 4, the Financial Supervisory Authority shall postpone its decision until the decision from the European Banking Authority is available, and thereafter make a decision in accordance with the decision from the European Banking Authority. If the European Banking Authority has not made a decision no later than 1 month after the case was referred, the Financial Supervisory Authority shall decide which orders shall apply.

Section 265 b. The Financial Supervisory Authority shall make a decision on the use of orders, cf. Section 264, subsection 5, when the Financial Supervisory Authority and Financial Stability are the resolution authority for a resolution entity in a group, where the top parent undertaking is in another country within the European Union or in a country with which the Union has concluded an agreement in the financial sector, and if the group resolution authority and the resolution authorities of the subsidiaries have not reached a joint decision within the deadline mentioned in Section 265, subsection 5, or the deadline mentioned in Section 265 a, subsection 4, if the obstacle to resolution is due to one of the situations covered by Section 264, subsection 3, items 1-3. The Financial Supervisory Authority shall notify the resolution entity and the group resolution authority of the decision.

Subsection 2. If a resolution authority has referred a case covered by subsection 1 to the European Banking Authority, the Financial Supervisory Authority shall postpone its decision until the decision from the European Banking Authority is available. The Financial Supervisory Authority shall thereafter make a decision in accordance with the decision from the European Banking Authority. If the European Banking Authority has not made a decision no later than 1 month after the case was referred, the Financial Supervisory Authority shall decide which orders shall apply.

Section 265 c. The Financial Supervisory Authority shall decide which measures shall be ordered, cf. Section 264, subsection 5, when the Financial Supervisory Authority and Financial Stability are the resolution authority for a subsidiary that is not a resolution entity, in a group where the top parent undertaking is in another country within the European Union or in a country with which the Union has concluded an agreement in the financial sector, and if the group resolution authority and the resolution authorities of the subsidiaries have not reached a joint decision within the deadline mentioned in Section 265, subsection 5, or the deadline mentioned in Section 265 a, subsection 4, if the obstacle to resolution is due to one of the situations covered by Section 264, subsection 3, items 1-3. The Financial Supervisory Authority shall notify the subsidiary, the resolution entity, the resolution authority for the resolution entity in question, and the group resolution authority.

Requirement for write-down eligible liabilities

Section 266. Credit institutions shall at all times meet a minimum requirement for write-down eligible liabilities, which the Financial Supervisory Authority sets after hearing Financial Stability. Financial holding companies and mixed holding companies shall meet a minimum requirement for write-down eligible liabilities if the Financial Supervisory Authority, after hearing Financial Stability, sets a minimum requirement for write-down eligible liabilities for these undertakings. The same applies to financing institutions when the financing institution is a subsidiary of a credit institution, a financial holding company, or a mixed holding company, and the financing institution is included in the supervision of the parent undertaking on a consolidated basis.

Subsection 2. The Financial Supervisory Authority may, after hearing Financial Stability, refrain from setting a requirement for write-down eligible liabilities for a subsidiary in the following cases:

The subsidiary is part of a resolution group where both the resolution entity and the subsidiary are established in Denmark, and the following conditions are met:
a) The resolution entity meets the requirement for write-down eligible liabilities on a consolidated basis at the resolution group level. b) There are no current or expected significant practical or legal obstacles to the rapid transfer of capital instruments or repayment of liabilities from the resolution entity to the subsidiary in the event that a decision has been taken regarding the exercise of write-down or conversion powers in relation to the subsidiary under Sections 272 or 273 or under Sections 17 or 18 a of the Act on Restructuring and Resolution of Certain Financial Undertakings. c) The resolution entity demonstrates to the Financial Supervisory Authority that the subsidiary is managed prudently, and declares that the resolution entity, with the permission of the Financial Supervisory Authority, has provided a guarantee for the subsidiary's liabilities, or that the risks in the subsidiary are insignificant. d) The resolution entity's procedures for risk assessment, measurement, and control include the subsidiary. e) The resolution entity holds more than 50 percent of the voting rights attached to the share capital in the subsidiary, or has the right to appoint or dismiss a majority of the members of the subsidiary's management.
The subsidiary is part of a resolution group where both the parent undertaking and the subsidiary are established in Denmark, and the following conditions are met:
a) The parent undertaking meets the requirement for write-down eligible liabilities on a consolidated basis in Denmark. b) There are no current or expected significant practical or legal obstacles to the rapid transfer of capital instruments or repayment of liabilities from the parent undertaking to the subsidiary in the event that a decision has been taken regarding the exercise of write-down or conversion powers in relation to the subsidiary under Sections 272 or 273 or under Sections 17 or 18 a of the Act on Restructuring and Resolution of Certain Financial Undertakings. c) The parent undertaking demonstrates to the Financial Supervisory Authority that the subsidiary is managed prudently, and declares that the parent undertaking, with the permission of the Financial Supervisory Authority, has provided a guarantee for the subsidiary's liabilities, or that the risks in the subsidiary are insignificant. d) The parent undertaking's procedures for risk assessment, measurement, and control include the subsidiary. e) The parent undertaking holds more than 50 percent of the voting rights attached to the share capital in the subsidiary, or has the right to appoint or dismiss a majority of the members of the subsidiary's management.

Subsection 3. The Financial Supervisory Authority may, after hearing Financial Stability, refrain from setting a minimum requirement for write-down eligible liabilities for a bridge institution and for an undertaking under resolution.

Subsection 4. Liquidation entities shall not meet a minimum requirement for write-down eligible liabilities, unless the Financial Supervisory Authority, after hearing Financial Stability, decides otherwise. The Financial Supervisory Authority may make a decision under the first sentence if, after hearing Financial Stability, it finds it justified, particularly considering whether the fact that the undertaking is becoming distressed is expected to have a negative impact on financial stability and on the risk of contagion to the financial system, including with regard to the financing capacity of the Guarantee Fund. The Financial Supervisory Authority sets the minimum requirement for write-down eligible liabilities for liquidation entities, cf. the first sentence, to an amount that exceeds the liquidation entity's loss-absorbing amount.

Paragraph 5. When setting the requirement for eligible liabilities, cf. paragraphs 1 and 2, the Financial Supervisory Authority shall specify whether the requirement must be met on a consolidated basis, cf. Section 267, or at an individual level, cf. Section 267 d.

Paragraph 6. The Financial Supervisory Authority shall set the minimum requirement for eligible liabilities, cf. paragraph 1, as a percentage of

the total risk exposure of the undertaking calculated in accordance with Article 92(3) of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions and
the total exposure measure of the undertaking calculated in accordance with Articles 429 and 429a of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions.

Section 266 a. The Financial Supervisory Authority sets the requirement for eligible liabilities, cf. Section 266, based on the following considerations:

The resolution group must be able to be resolved by using resolution tools at the resolution entity in a manner that fulfils the resolution objectives.
The resolution entity and its subsidiaries, which are not resolution entities, must have sufficient eligible liabilities to ensure that losses can be absorbed and the capital ratio and leverage ratio in the relevant undertakings can be restored to a level where the resolution entity and its subsidiaries, which are not resolution entities, continue to meet the requirements for authorization and carry out the activities for which authorization has been granted, and where sufficient market confidence is maintained.
The resolution entity must have sufficient eligible liabilities to absorb losses and restore the resolution entity's capital ratio and leverage ratio to a level where the resolution entity continues to meet the requirements for authorization and carry out the activities for which authorization has been granted, and where sufficient market confidence is maintained, when the resolution plan foresees the possibility that certain categories of eligible liabilities are excluded from bail-in or transferred in their entirety to a recipient in a partial transfer.
The size, business model, funding model and risk profile of the undertaking.
The extent to which the fact that the undertaking becomes distressed will have a negative impact on financial stability, including through contagion to other undertakings.

Paragraph 2. The Financial Supervisory Authority sets the requirement for eligible liabilities for a resolution entity based on whether it follows from the resolution plan that the resolution entity's subsidiaries, which are established in a country outside the European Union, with which the Union has not concluded an agreement in the financial sector, are part of the same resolution group as the resolution entity.

Section 266 b. The requirement for eligible liabilities may be met with own funds and eligible liabilities, cf. Sections 267 a-267 c and Section 267 e.

Requirements for eligible liabilities for resolution entities

Section 267. A resolution entity must meet the requirement for eligible liabilities, cf. Section 266, on a consolidated basis at the resolution group level, cf. however paragraph 2.

Paragraph 2. The consolidation covers only undertakings that are subject to a requirement for eligible liabilities. Eligible liabilities used to meet a set requirement for eligible liabilities that must be met at a consolidated level may not simultaneously be used to meet or finance liabilities that are included in the fulfilment of the requirements in Section 268, paragraphs 1-4, or the requirements that follow from Section 268 d.

Paragraph 3. After consulting Financial Stability, the Financial Supervisory Authority sets a deadline for resolution entities that have been subject to write-down or conversion pursuant to Sections 272 or 273 or pursuant to Sections 17 or 18 a of the Act on Restructuring and Resolution of Certain Financial Undertakings, and resolution entities for which Financial Stability has used resolution tools, to meet the requirement for eligible liabilities anew. After consulting Financial Stability, the Financial Supervisory Authority sets interim targets for the resolution entity's fulfilment of the requirement for eligible liabilities for each 12-month period leading up to the set deadline, cf. the first sentence.

Section 267 a. A resolution entity must meet the requirement for eligible liabilities, cf. Section 266, with own funds or the following obligations in items 1-4 or both in combination, cf. however paragraph 2 and Sections 267 b and 267 c:

Obligations that fulfil the conditions in Article 72 a, Article 72 b(1), (2)(a-c and e-n) and (3)-(5), and Article 72 c of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions.
The principal of obligations from debt instruments that have a derivative component and that fulfil the following conditions:
a) The conditions in Article 72 a(1) and (2)(a-k), Article 72 b(1), (2)(a-c and e-n) and (3)-(5), and Article 72 c of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions. b) The principal of the debt instrument is known at the time of issuance, is fixed or increasing and is not affected by an embedded derivative feature, and the total obligations arising from the debt instrument can be valued daily based on an active and liquid market for the purchase and sale of an equivalent instrument without credit risk in accordance with Articles 104 and 105 of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions. c) The debt instrument is not covered by a netting agreement, and the valuation of the debt instrument is not covered by Section 27(3) of the Act on Restructuring and Resolution of Certain Financial Undertakings.
Obligations from debt instruments that have a derivative component and that fulfil the following conditions:
a) The conditions in Article 72 a(1) and (2)(a-k), Article 72 b(1), (2)(a-c and e-n) and (3)-(5), and Article 72 c of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions. b) The debt instrument contains a contractual provision stating that the value of the claim is fixed or increasing in the event of the issuer's resolution or bankruptcy, and that the value does not exceed the originally paid liability amount. c) The debt instrument is not covered by a netting agreement, and the valuation of the debt instrument is not covered by Section 27(3) of the Act on Restructuring and Resolution of Certain Financial Undertakings.
Obligations issued by a subsidiary established in the European Union or in a country with which the Union has concluded an agreement in the financial sector, which is part of the same resolution group as the resolution entity, to an equity holder who is not part of the same resolution group, when the following conditions are met:
a) The obligations are issued in accordance with Section 267 e, item 3. b) The resolution entity's control over the subsidiary will not be affected by the Financial Supervisory Authority's exercise of write-down or conversion powers, cf. Sections 272 or 273, or Financial Stability's exercise of write-down or conversion powers, cf. Sections 17 or 18 a of the Act on Restructuring and Resolution of Certain Financial Undertakings. c) The obligations do not exceed the amount calculated from the formula in Annex 9, item 1.

Paragraph 2. A resolution entity that is a Global Systemically Important Financial Institution (G-SIFI), and an undertaking that is a significant subsidiary of a Global Systemically Important Financial Institution (G-SIFI) in a third country, but which is not itself a resolution entity, must meet the requirements in Article 92 a and 92 b of the Regulation on prudential requirements for credit institutions and investment firms respectively with eligible liabilities as defined in Article 72 k of the Regulation and established in accordance with Articles 72 a-72 l of the Regulation.

Requirements for subordination for resolution entities

Section 267 b. After consulting Financial Stability, the Financial Supervisory Authority may decide that resolution entities must meet a portion of the requirement for eligible liabilities, cf. Section 266(1), corresponding to the highest of either 8% of total liabilities and own funds or the amount calculated from the formula in Annex 9, item 3, with own funds, with subordinated eligible instruments or with obligations covered by Section 267 a(1), item 4, when the following conditions are met, cf. however Section 267 c:

The non-subordinated obligations referred to in Section 267 a(1), items 1-3, are in the order of bankruptcy on a par with obligations that are exempt from bail-in, cf. Section 25(3) of the Act on Restructuring and Resolution of Certain Financial Undertakings, or obligations that Financial Stability may decide to exempt wholly or partially from bail-in, cf. Section 25(4) of the Act on Restructuring and Resolution of Certain Financial Undertakings.
There is a risk that creditors with claims linked to these obligations will suffer greater losses as a result of a bail-in on non-subordinated obligations planned in the resolution plan than they would in a bankruptcy proceeding of the resolution entity.
The size of the own funds and the other subordinated obligations does not exceed the amount necessary to ensure that creditors referred to in item 2 do not suffer losses greater than the losses they would have suffered in a bankruptcy proceeding of the resolution entity.

Paragraph 2. After consulting Financial Stability, the Financial Supervisory Authority sets a deadline for resolution entities that have been subject to write-down or conversion pursuant to Sections 272 or 273 or pursuant to Sections 17 or 18 a of the Act on Restructuring and Resolution of Certain Financial Undertakings, and resolution entities for which Financial Stability has used resolution tools, to meet the requirement in paragraph 1 anew. After consulting Financial Stability, the Financial Supervisory Authority sets interim targets for the resolution entity's fulfilment of the requirement for each 12-month period leading up to the set deadline, cf. the first sentence.

Section 267 c. After consulting Financial Stability, the Financial Supervisory Authority must set that a resolution entity must meet a portion of the requirement for eligible liabilities, cf. Section 266, with own funds, subordinated eligible instruments or obligations covered by Section 267 a(1), item 4. The portion must correspond to 8% of total liabilities and own funds for the following resolution entities, cf. however paragraphs 2-4:

Resolution entities that are Global Systemically Important Financial Institutions (G-SIFIs).
Resolution entities that are not Global Systemically Important Financial Institutions (G-SIFIs), but which are part of a resolution group whose total assets exceed 100 billion euros.
Other resolution entities that are not Global Systemically Important Financial Institutions (G-SIFIs), and which are part of a resolution group whose total assets are less than 100 billion euros, but which the Financial Supervisory Authority has assessed with reasonable probability constitute a systemic risk if they become distressed.

Paragraph 2. After consulting Financial Stability, the Financial Supervisory Authority may set the portion mentioned in paragraph 1 to an amount that is lower than 8% of total liabilities and own funds, but higher than the amount calculated from the formula in Annex 9, item 2.

Paragraph 3. For resolution entities covered by paragraph 1, item 2, the portion mentioned in paragraph 1 may at most correspond to 27% of the resolution entity's total risk exposure in the event that the Financial Supervisory Authority, after consulting Financial Stability, has assessed that

the resolution plan for the relevant resolution entity does not involve the use of the Resolution Fund, cf. Chapter 11 of the Act on Restructuring and Resolution of Certain Financial Undertakings, as an option in connection with the resolution of the relevant resolution entity, or
the requirement for eligible liabilities makes it possible to fulfil Section 26(2) of the Act on Restructuring and Resolution of Certain Financial Undertakings.

Paragraph 4. After consulting Financial Stability, the Financial Supervisory Authority may set that the portion mentioned in paragraph 1 must amount to an amount that, due to the resolution entity's obligation to meet the combined capital buffer requirement and the requirement for eligible liabilities, corresponds to the highest of either 8% of the resolution group's total liabilities and own funds or the amount calculated from the formula in Annex 9, item 3, when one of the following conditions is met:

The Financial Supervisory Authority and Financial Stability have found that there are significant obstacles to resolution, cf. Sections 262 and 263, and
a) no remedial measures have been taken in accordance with orders issued by the Financial Supervisory Authority pursuant to Section 264(5) within the deadline for this, or b) the significant obstacles found cannot be remedied by using orders referred to in Section 264(5), and setting the portion mentioned in paragraph 1 pursuant to this provision offsets the negative impact of the significant obstacle on resolution possibilities.
It follows from the resolution plan for the resolution entity that the preferred resolution strategy for the resolution entity is feasible and credible to a limited extent, taking into account the resolution entity's size, the nature, scope and complexity of the resolution entity's activities, the risks associated with the resolution entity's activities, interconnectivity and the resolution entity's legal status and shareholder structure.
The individual solvency requirement set pursuant to Section 124(3) or individual solvency needs set pursuant to Section 124(2) reflect that the resolution entity is among the 20% most risk-bearing undertakings for which the Financial Supervisory Authority sets requirements for eligible liabilities.

Paragraph 5. Requirements set pursuant to paragraphs 1-4 must be met 3 years after the date on which the resolution entity or the group of which the resolution entity is a part has been designated as a Global Systemically Important Financial Institution (G-SIFI), or the resolution entity is covered by paragraph 1, item 2 or 3. After consulting Financial Stability, the Financial Supervisory Authority sets interim targets for the resolution entity's fulfilment of the requirement set pursuant to paragraph 1, cf. paragraphs 2-4, for each 12-month period leading up to the set deadline, cf. the first sentence.

Paragraph 6. After consulting Financial Stability, the Financial Supervisory Authority sets an appropriate deadline for resolution entities that have been subject to write-down or conversion pursuant to Sections 272 or 273 or pursuant to Sections 17 or 18 a of the Act on Restructuring and Resolution of Certain Financial Undertakings, and resolution entities for which Financial Stability has used resolution tools, to meet the requirements in paragraphs 1-4 anew. After consulting Financial Stability, the Financial Supervisory Authority sets interim targets for the resolution entity's fulfilment of the requirement set pursuant to paragraphs 1-4 for each 12-month period leading up to the set deadline, cf. the first sentence.

Requirements for eligible liabilities for undertakings that are not resolution entities (internal requirement for eligible liabilities)

Section 267 d. An undertaking that is a subsidiary of a resolution entity or an undertaking in a third country, but which is not itself a resolution entity, must meet the requirement for eligible liabilities, cf. Section 266, at an individual level, cf. however Section 266(2).

Paragraph 2. After consulting Financial Stability, the Financial Supervisory Authority sets a deadline for undertakings that are not resolution entities, but which have been subject to write-down or conversion pursuant to Sections 272 or 273 or pursuant to Sections 17 or 18 a of the Act on Restructuring and Resolution of Certain Financial Undertakings, and undertakings that are not resolution entities, and for which Financial Stability has used resolution tools, to meet the requirement for eligible liabilities anew. The Financial Supervisory Authority sets interim targets for the undertaking's fulfilment of the requirement for eligible liabilities for each 12-month period leading up to the set deadline, cf. the first sentence.