Proposal to Increase Certain Requirements for Managers under the AIFM and AML Act Published for Consultation

Published September 24th, 2019
Category: Financial Regulation

On 28 August 2019 the Danish FSA (in Danish: Finanstilsynet) published for consultation a draft proposal to change, among others, the Danish AIFM Act and the Danish AML Act.

The draft proposal addresses a variety of matters related to regulatory compliance, but notably includes a requirement for agreements between managers of alternative investment funds and their current and former employees imposing an obligation of confidentiality to specify that such agreements do not prevent the reporting of violations, or potential violations, of financial regulation to public authorities, i.e. do not prevent employees from acting as whistleblowers. If passed, this requirement will likely cause a need for managers to update existing employment contracts.

The draft proposal also introduces new powers for the Danish FSA to require that a manager temporarily ceases onboarding of new customers when serious violations of the AML Act are identified just as it specifies an obligation for the manager to proactively correct information given to the Danish FSA that later turns out to be incorrect or subsequently becomes incorrect. This obligation presumably already applies but if the draft proposal is transformed into law, it will become a punishable offence not to correct information as described.

Next Steps: The consultation period ends on 25 September 2019 and a final proposal is expected to be submitted in the Danish Parliament on 30 October 2019.

See the draft proposal (in Danish) here.

Tags:  ComplianceDanish RegulationKYC / AMLWhistleblowing


Also tagged ‘Compliance’

6 Nov 2019Taxation / VATUpdates

Proposal to Transpose DAC6 into Danish Law Presented in the Danish Parliament

On 6 November 2019 the Danish government presented its proposal to transpose the EU directive regarding mandatory reporting in relation to arrangements with cross-border implications (“DAC6”) into Danish law.

ComplianceDAC6Disclosure Requirements
2 Jul 2019Other Compliance Requirements

Japan Deemed a Sector Specific, Safe Third Country by the Danish DPA

Transfer of personal data from Denmark to (private) organisations in Japan that are subject to the APPI will not require prior approval from the DPA.

ComplianceDanish RegulationGDPR
11 Jun 2019Other Compliance Requirements

Danish Company Faces Prosecution and a Fine of DKK 1.5 mill. for GDPR Violation

On 11 June 2019, the Danish Data Protection Agency ("DPA") has reported a Danish furniture company to the Danish police for not deleting information on approx. 385,000 customers.

ComplianceDanish RegulationGDPR
23 May 2019Taxation / VAT

DAC6 Expected to be Transposed into Danish Law in Second Half of 2019

DAC6, the new EU directive regarding mandatory reporting in relation to arrangements with cross-border implications DAC6, will increase reporting requirements for arrangements that have cross-border implications.

ComplianceDAC6Disclosure Requirements
2 May 2019Corporate RegulationFinancial Regulation

Danish Parliament Strengthens Registration Requirements of Ultimate Beneficial Owners

On 2 May 2019, the Danish Parliament adopted amendments to the Danish Companies Act, which implements part of the 5th EU Anti-Money Laundering Directive.

Beneficial OwnershipComplianceDanish RegulationDisclosure RequirementsKYC / AML
25 Mar 2019Other Compliance Requirements

Fine of DKK 1.2. mio. Recommeded for Taxi Company’s Storage of Costumer Phone Numbers

On 25 March 2019, the Danish Data Protection Agency submitted a notice to the Danish police regarding a Danish taxi company’s violation of GDPR for storage of customer phone numbers.

ComplianceDanish RegulationGDPR
13 Mar 2019Corporate RegulationFinancial Regulation

Proposal to Strengthen the Registration of Ultimate Beneficial Owners

On 13 March 2019, the Danish Government presented a proposal for an amendment of various acts including the Danish Companies Act which implements part of the 5th EU Anti-Money Laundering Directive concerning the registration of ultimate beneficial owners.

Beneficial OwnershipComplianceDanish RegulationDisclosure RequirementsKYC / AML
27 Feb 2019Financial Regulation

New Proposal to Implement Authority to Enforce the PRIIPS-Regulation Into Danish Law

On 27 February 2019, the Danish Government presented a proposal for an amendment of the Danish AIFM Act giving the Danish Financial Supervisory Authority competence to enforce the PRIIPs regulation.

ComplianceDanish RegulationDisclosure RequirementsKID / PRIIPSWhistleblowing

Other updates

7 Nov 2019Taxation / VATUpdates

Guidance Signal Excluding Certain Alternative Investment Funds from VAT Exemption on Management Fees is Adopted by the Danish Tax Agency

On 7 November 2019 the Danish Tax Agency presented its guidance signal concerning the rules on VAT exemption for management fees for management of investment undertakings.

Danish RegulationManagement Remuneration
6 Nov 2019Taxation / VATUpdates

Proposal to Transpose DAC6 into Danish Law Presented in the Danish Parliament

On 6 November 2019 the Danish government presented its proposal to transpose the EU directive regarding mandatory reporting in relation to arrangements with cross-border implications (“DAC6”) into Danish law.

ComplianceDAC6Disclosure Requirements
5 Nov 2019Financial RegulationUpdates

ESA issues Joint Supervisory Statement on the Application of Scope of the PRIIPs Regulation to Bonds

The statement seeks to mitigate the risk of divergent application, by national competent authorities, for determining the type of bonds for which it is necessary to draw up a Key Information Document (KID).

Disclosure RequirementsESMAKID / PRIIPS
4 Nov 2019Financial RegulationUpdates

ESA issues Consultation Paper on Amendments to the Existing PRIIPS Regulation

On 16 October 2019 ESA has issued a consultation paper on amendments to existing rules underpinning the Key Information Document (KID) for Packaged Retail and Insurance-based Investment Products (PRIIPs).

Disclosure RequirementsESMAKID / PRIIPS
15 Oct 2019Financial RegulationUpdates

ESMA Preparations for a No-Deal Brexit

ESMA has issued updated statements in relation to its approach to the application of some key MiFID/MiFIR II provisions in case of a no deal Brexit.

Brexit
2 Oct 2019Taxation / VATUpdates

Proposal to Adjust the Danish Rules on Taxation of Carried Interest

The Danish Government has presented a proposal for an amendment of various acts, including the Danish Tax Assessment Act and the Danish Act on Taxation of Capital Gains on Shares.

Management Remuneration