Order No. 329 of 7 April 2016 on Competence Requirements for Mortgage Lenders and Mortgage Intermediaries

Order on Competence Requirements for Mortgage Lenders and Mortgage Intermediaries1)

Pursuant to Section 43(4) of the Financial Business Act, cf. Consolidation Act No. 1390 of 18 November 2025, Section 6(2) of the Act on Investment Advisors and Mortgage Intermediaries, cf. Consolidation Act No. 1095 of 21 October 2024, as amended by Act No. 1668 of 30 December 2024, and Section 8a(4) of the Act on Real Estate Credit Companies, cf. Consolidation Act No. 285 of 1 March 2023, the following is enacted:

Scope

Section 1. This Order applies to the following mortgage lenders and mortgage intermediaries that provide, intermediation, or advise on mortgage agreements to consumers:

1. Danish financial undertakings, cf. Section 5(1)(1)(a) and (b) of the Financial Business Act, and foreign financial undertakings operating in this country through branch establishment.
2. Danish mortgage intermediaries, cf. Section 2(2) of the Act on Investment Advisors and Mortgage Intermediaries, and foreign companies operating in this country through branch establishment.
3. Real estate credit companies that professionally provide mortgage agreements, cf. Section 1(2)(2) of the Act on Real Estate Credit Companies.

Definitions

Section 2. In this Order, the following definitions apply:

1. Mortgage agreement: An agreement under which a lender provides or commits to provide a consumer with credit secured by either a mortgage or another equivalent security or another right attached to residential real estate, or credit agreements that form the basis for acquiring or retaining ownership rights to the ground area of existing or planned buildings.
2. Advice: Personal recommendations, guidance, including information on risks associated with a transaction, and information on the immediate consequences of the consumer's options.
3. Advisory services: Personal recommendations to a client concerning one or more transactions in connection with mortgage agreements that are independent of the provision of the mortgage agreement, and the activities provided by a mortgage intermediary, cf. item 4.
4. Mortgage intermediary: A company that, as part of its main or ancillary business activity, presents or offers mortgage agreements to consumers, concludes such agreements with a consumer on behalf of a lender, or assists a consumer with advisory services, administration, or other preparatory work prior to the conclusion of a mortgage agreement.
5. Tied mortgage intermediary: A mortgage intermediary that acts on behalf of and bears full and unconditional responsibility for one or more mortgage lenders that do not represent a majority of the market.
6. Mortgage lender: A company that, as part of its main or ancillary business activity, provides mortgage agreements.
7. Consumer: A person who, in connection with advice and other activities covered by this Order, acts primarily outside their trade, business, or profession.
8. Employee:
   a) Any natural person who works for a mortgage lender or a mortgage intermediary and is directly involved in providing or intermediating mortgage agreements, or providing advice on mortgage agreements, or having contact with consumers in connection with these activities. b) Any natural person who directly manages or supervises the natural persons covered by item a).

Competence Requirements

Section 3. Mortgage lenders and mortgage intermediaries must ensure that the company employs staff who collectively possess sufficient competence to provide advice and offer advisory services on mortgage agreements, and, where relevant, possess sufficient competence regarding the design, offering, and approval of mortgage agreements and mortgage intermediation activities. If the conclusion of a mortgage agreement includes an ancillary service, mortgage lenders and mortgage intermediaries must similarly ensure that employees have a sufficient competence level in connection with providing that ancillary service.

Section 4. In connection with advice and advisory services on mortgage agreements and the intermediation of mortgage agreements, the mortgage lender and mortgage intermediary must ensure that the employee possesses sufficient knowledge in the following areas:

1. Product knowledge of mortgage agreements and the ancillary services typically offered on the market alongside them.
2. Legislation concerning mortgage agreements for consumers, particularly regarding consumer protection and relevant debt legislation.
3. The process in connection with the purchase of real estate.
4. Real estate valuation.
5. Land registration.
6. The mortgage agreement market.
7. Good practice, cf. Order on Good Practice for Mortgage Credit.
8. Consumer credit assessment.
9. Financial and economic understanding.
10. Tax rules relevant to the consumer in connection with mortgage agreements.

Subsection 2. The mortgage lender and mortgage intermediary must ensure that the employee in the company can:

1. analyze the consumer's need for mortgage agreements, particularly based on the consumer's own information,
2. present and justify possible and appropriate solutions to the consumer's need to enter into a mortgage agreement,
3. advise on the functioning of the different mortgage agreements, and
4. calculate the financial consequences of the different solutions.

Documentation

Section 5. A mortgage lender and a mortgage intermediary must draw up a procedure for systematic training courses that ensure that all company employees who intermediation or provide advice and offer advisory services on mortgage agreements possess the necessary competences. A mortgage lender and a mortgage intermediary must ensure that employees have completed this training course before they begin to provide, intermediation, or provide advice and offer advisory services on mortgage agreements.

Subsection 2. Employees of a mortgage lender and a mortgage intermediary may acquire the necessary competences by:

1. completing and passing a theoretical training course relevant to the specific activity, or
2. having been employed for a minimum of two years by a mortgage lender or a mortgage intermediary, thereby acquiring competences to provide sound intermediation and advice or offer advisory services on mortgage agreements, cf. Section 4.

Subsection 3. Determination of a sufficient competence level after 21 March 2019 may not be based solely on competences acquired as stated in Subsection 2, item 2.

Subsection 4. The mortgage lender and mortgage intermediary must, in the procedures covered by Subsection 1, describe how they ensure that employees update their competences in accordance with Section 3.

Mortgage Lenders' Control of Tied Mortgage Intermediaries

Section 6. A mortgage lender must ensure that all relevant personnel at a tied mortgage intermediary, who act on behalf of and bear full and unconditional responsibility for one mortgage lender, meet the requirements for competences and knowledge, cf. Sections 3-5.

Entry into Force

Section 7. This Order enters into force on 1 January 2026.

Subsection 2. Order No. 830 of 10 June 2022 on Competence Requirements for Mortgage Lenders and Mortgage Intermediaries is repealed.

Ministry of Industry, Business and Financial Affairs, 27 November 2025 Morten Bødskov / Hans Høj 27 November 2025. 2 No. 1425.

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1. This Order contains provisions implementing parts of Directive 2014/17/EU of the European Parliament and of the Council of 4 February 2014 on credit agreements for consumers relating to residential real estate and amending Directives 2008/48/EC and 2013/36/EU and Regulation (EU) No 1093/2010, Official Journal of the European Union 2014, No L 60, p. 34.