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

Published 24 September 2019

PrintCategory: 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


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