Order on Amendments to the Order on Financial Reports for Credit Institutions and Securities Brokerage Companies

Order on Amendments to the Order on Financial Reports for Credit Institutions and Securities Brokerage Companies m.fl.

§ 1 In the Order No. 281 of 26 March 2014 on financial reports for credit institutions and securities brokerage companies m.fl., as amended by Order No. 707 of 1 June 2016, Order No. 1043 of 5 September 2017, Order No. 1441 of 3 December 2018 and Order No. 1593 of 9 November 2020, the following amendments are made:

1. The preamble is worded as follows: "Pursuant to Section 188, subsection 3, Section 192, Section 196, subsections 1-3, Section 341, subsection 4, and Section 373, subsection 4, of the Act on Financial Business, cf. Act Consolidation No. 406 of 29 March 2022, Section 131, subsection 6, and Section 190, subsection 5, of the Act on Alternative Investment Fund Managers, cf. Act Consolidation No. 2015 of 1 November 2021, and Section 157 of Act No. 1155 of 8 June 2021 on securities brokerage companies and investment services and activities, it is hereby ordered:"

2. In Section 121, subsection 3, "Information regarding employees mentioned under no. 3 may be omitted" is changed to: "Information mentioned in subsection 2, no. 3, shall be omitted."

3. In Section 121, subsections 4 and 5 are inserted as follows: "Subsection 4. If compliance with the disclosure requirement regarding employees under subsection 2, nos. 1 and 2, entails providing information on individual employees' salaries in the published annual report, this information shall be replaced by a reference to where this information can be found. The information referred to must be publicly accessible for at least 10 years from the time of publication of the latest annual report. Subsection 5. Savings institutions, cf. Section 1, no. 6, are not covered by subsection 4."

4. In Section 134, subsection 1, no. 8 is inserted as follows: "8) A description of the company's diversity policy used in connection with the composition of the company's management, as regards e.g. age, gender or educational and professional background, cf. however subsection 5. The report shall contain information on:

1. the objectives of the diversity policy,
2. how the diversity policy has been implemented, and
3. the results of the diversity policy during the reporting period."

5. In Section 134, subsection 2, "subsection 1, nos. 1-5 and 7" is changed to: "subsection 1, nos. 1-5, 7 and 8".

6. In Section 134, subsections 5 and 6 are inserted as follows: "Subsection 5. The requirement for the report under subsection 1, no. 8, applies only when the company, at the balance sheet date in two consecutive financial years, exceeds at least two of the following sizes:

1. A balance sheet total of DKK 156 million.
2. A net turnover of DKK 313 million.
3. An average number of full-time employees during the financial year of 250. Subsection 6. If a company covered by subsection 1 does not have a diversity policy as mentioned in subsection 1, no. 8, the management's report shall contain a statement explaining the reasons for this."

7. Section 135a is worded as follows: "Section 135a. Companies that, under company law or financial legislation, are obliged to set targets for the proportion of the underrepresented gender shall, regardless of whether the company meets the conditions for exemption from the obligation to set targets, include in the management's report a summary as of the balance sheet date of the following:

1. The total number of members excluding any employee-elected members of the highest management body, and what percentage of this is the underrepresented gender.
2. The total number of persons at the company's other management levels, and what percentage of this is the underrepresented gender.
3. The figures mentioned in nos. 1 and 2 for the four preceding financial years. Subsection 2. Companies that, under company law or financial legislation, are obliged to set targets for the proportion of the underrepresented gender shall, in addition to the information in the summary under subsection 1, disclose the following:
4. Targets in percentage for the proportion of the underrepresented gender in the highest management body, including the year by which the target is expected to be met.
5. Targets in percentage for the proportion of the underrepresented gender at the company's other management levels, including the year by which the target is expected to be met.
6. The figures mentioned in nos. 1 and 2 for the four preceding financial years. Subsection 3. In connection with the summary under subsection 1, companies that are obliged to set targets, cf. subsection 2, no. 1, shall disclose the following:
7. The status of the fulfillment of the target under subsection 2, no. 1.
8. The most significant actions taken during the financial year to fulfill the target.
9. The reason why the target has not been fulfilled, if this is the case. Subsection 4. Companies that must disclose targets under subsection 2, no. 2, shall, in connection with the summary under subsection 1, explain the company's policy to increase the proportion of the underrepresented gender at the company's other management levels, including the following:
10. The most significant content of the policy.
11. The most significant actions the company has taken during the financial year to achieve the target and to translate its policy into action.
12. The status of the fulfillment of the target and, if relevant, the reason why the target has not been fulfilled. Subsection 5. Companies that, as of the balance sheet date, have an equal distribution of men and women in the highest management body or at the company's other management levels shall, in connection with the summary under subsection 1, indicate this. Subsection 6. Companies that, under company law, are exempt from the duty to set targets and prepare a policy to increase the proportion of the underrepresented gender for other management levels, as a result of having employed fewer than 50 employees in the most recent financial year, shall, in connection with the summary under subsection 1, indicate this. Subsection 7. Companies that, under financial legislation, are exempt from the duty to prepare a policy to increase the proportion of the underrepresented gender at the company's other management levels, as a result of the company having employed fewer than 50 employees in the most recent financial year, shall, in connection with the summary under subsection 1, indicate this. Subsection 8. The first time the company must provide information under subsections 1 and 2, the company shall only include information for the relevant financial year in the summary under subsections 1 and 2. In subsequent financial years, the company shall supplement the summary with information for previous financial years where the company has included information in the summary under subsections 1 and 2."

§ 2 Subsection 1. This Order enters into force on 1 March 2023. Subsection 2. The Order applies to the preparation and submission of annual and interim reports concerning financial periods beginning on or after 1 January 2023. However, the provisions in Section 1, nos. 2-6, may be applied voluntarily for annual and interim reports concerning the financial year 2022.

Danish Financial Supervisory Authority, 27 January 2023 Jesper Berg / Thomas Worm Andersen