Order on Capital to Meet the Individual Solvency Add-on for Credit Institutions and Mortgage Credit Institutions

Pursuant to Section 124, subsection 8, of the Act on Financial Business, cf. Consolidation Act No. 1447 of 11 September 2020, as amended by Act No. 2110 of 22 December 2020, the following is enacted:

Scope of Application

Section 1. This Order applies to:
1) Credit institutions.
2) Mortgage credit institutions.
3) Groups where the ultimate parent undertaking in Denmark is a credit institution or a credit institution holding company.
4) Groups where the ultimate parent undertaking in Denmark is a mortgage credit institution or a mortgage credit institution holding company.

Quality and Composition of Capital

Section 2. The capital used to cover the individual solvency add-on mentioned in Section 124, subsection 3, of the Act on Financial Business, must consist of at least 56.25% Common Equity Tier 1 capital. At least 75% of the capital must consist of Tier 1 capital. The remaining 25% may consist of Common Equity Tier 1 capital, Additional Tier 1 capital, or Tier 2 capital.

Subsection 2. The Danish Financial Supervisory Authority may require a firm to use a higher proportion of Common Equity Tier 1 capital or Tier 1 capital than specified in subsection 1, taking into account the specific circumstances applicable to the firm.

Entry into Force

Section 3. This Order enters into force on 28 December 2020.

Subsection 2. If an institution covered by Section 1 has issued Additional Tier 1 capital or Tier 2 capital before 31 December 2015, which on 31 December 2015 could be included in meeting the institution's individual solvency add-on, cf. Section 124, subsection 3, of the Act on Financial Business, the institution may until 31 December 2021 use this capital to cover the requirements mentioned in Section 2, where it may be included as Common Equity Tier 1 capital, Additional Tier 1 capital, or Tier 2 capital.

Subsection 3. Order No. 1587 of 3 December 2015 on capital to meet the individual solvency add-on for credit institutions and mortgage credit institutions is repealed.

Ministry of Business Affairs, 22 December 2020

Simon Kollerup
/ Niels Kofoed

Official Gazette A
2020 Published on 23 December 2020
22 December 2020. No. 2143.
Ministry of Business Affairs,
Danish Financial Supervisory Authority, ref. no. 1011-0038 CQ001451

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The links and the sentences they come from (2)

Supersedes

Order No. 1587 of 3 December 2015 on capital to meet the individual solvency add-on for credit institutions and mortgage credit institutionsNot in RegAlert
“Order No. 1587 of 3 December 2015 on capital to meet the individual solvency add-on for credit institutions and mortgage credit institutions is repealed.”

Issued under

Consolidation Act No. 1447 of 11 September 2020Not in RegAlert
“Pursuant to Section 124, subsection 8, of the Act on Financial Business, cf. Consolidation Act No. 1447 of 11 September 2020”