New rules on more flexible fit & proper assessments adopted

Published 28 April 2023

PrintCategory: Financial Regulation

On 18 April 2023, the Danish Parliament adopted the proposal to amend the financial regulation presented by the Danish Government, which includes amendments to the rules on fit & proper assessments. The proposal as adopted is available here (in Danish).

The amendments implement the political agreement from June 2022 available here (in Danish) on a broader recruitment basis for management positions in the financial sector. The agreement involves a more holistic approach to fit & proper assessments, which aims to improve financial companies’ opportunities to recruit management members and key personnel from other sectors in business and across sub-sectors in the financial sector.

The amendments include inter alia:

  • Explicit authority for the Financial Supervisory Authority (“FSA”) to make fit & proper decisions, duration of rejections, and changes to the requirements of public disclosure;
  • Two aligned processes for fit & proper assessments, including an overall assessment and a rule of presumption;
  • An opportunity for conditional fit & proper approvals of executive members and key persons, such conditions to be met within 18 months;
  • Mandatory renewed fit & proper assessment upon appointment as Chair of the Board in a credit institution, mortgage credit institution or insurance undertaking;
  • A right to require that the FSA must bring rejections of fit & proper applications before the courts;

What’s next: The amendments enter into force on 1 July 2023.

Tags:  Danish RegulationGovernance


Also tagged ‘Danish Regulation’

5 Jan 2024Impact and ESGUpdates

New green investment scheme consultation

On 21 December 2023, the Danish Financial Supervisory Authority published a draft executive order on a new green investment scheme for consultation.

Danish RegulationSustainability
7 Jul 2023Updates

Revision of the Investment Screening Act has entered into force

On 1 July 2023, a revision of the Investment Screening Act (the “Act”) entered into force. The revision revolves around two areas: public contracts and administrative procedures.

Danish RegulationGovernance
21 Apr 2023AIFsUpdates

New rules on severance pay to managers of AIFMs adopted

On 18 April 2023, the Danish Parliament has adopted the proposal to amend the Danish financial regulation, including the Danish Alternative Investment Fund Managers Act.

Danish RegulationDisclosure RequirementsManagement Remuneration
31 Mar 2023Investors RegulationUpdates

Public consultation of the Investment Screening Act has ended

On 8 March 2023, a proposal for changes of the Investment Screening Act (the “Act”) was submitted for public consultation. The Act has been in effect since 1 September 2021, and based on the experiences with the Act this far, as well as the situation in and around Denmark, amendments to the Act have been deemed necessary.

Danish RegulationGovernance
8 Mar 2023AIFsUpdates

New rules on severance pay to members of the management of AIFMs

On 8 February 2023, the Danish Government presented a proposal for amendments in the Danish financial regulation, including the Danish Alternative Investment Fund Managers Act.

Danish RegulationDisclosure RequirementsManagement Remuneration
9 Jan 2023Impact and ESGUpdates

Requirements for Gender Composition in Managements have Tightened

On 1 January 2023 new rules have imposed stricter requirements for targets and policies on the gender composition of managements. These rules cover both large Danish companies (covered by accounting class C), including state-owned and some listed companies (covered by accounting class D), as well as certain companies within the financial area

ComplianceDanish RegulationSustainability
6 Jan 2023Impact and ESGUpdates

EU Legislation Takes Action Against Greenwashing

Lately, EU has sharpened its focus on preventing greenwashing as well as strengthening the sustainability reporting requirements. One step, among others, is the recent passing of the CSRD. Another is a proposal published in March 2022 by the European Commission with amendments for the Directive 2005/29/EC on Unfair Commercial Practices (UCPD) as well as the Directive 2011/83/EU on Consumer Rights.

Cross-BorderDanish RegulationSustainability
3 Jan 2023Taxation / VATUpdates

Amendments to the Danish Corporation Tax Act and the Danish Tax Assessment Act have entered into force

Following the amendments, enacted on 9 June 2022, the corporate tax rate applicable to financial companies has increased from 22 percent to 25.2 percent as per 1 January 2023 and will increase to 26 percent in 2024.

Danish RegulationManagement Remuneration
28 Apr 2022Taxation / VATUpdates

Higher Corporate Tax Rate for Danish Financial Companies and Deductibility Cap on Salary Expenses

On 6 April 2022, the Danish Government presented a proposal for an amendment of, among others, the Danish Corporation Tax Act.

Danish RegulationManagement Remuneration
9 Aug 2021Corporate RegulationImpact and ESGUpdates

Commission Delays Application Date for the ESG Disclosure and Taxonomy Regulations

The Commission has postponed the date of application of the detailed regulatory technical standards (RTS) under the ESG Disclosure Regulation and the Taxonomy Regulation by six months from 1 January 2022 to 1 July 2022.

ComplianceCross-BorderDanish Regulation
6 Aug 2021Corporate RegulationImpact and ESGUpdates

Commission Clarifies Questions of Interpretation Regarding ESG Disclosures

The Commission has answered a number of questions from the European Supervisory Authorities (ESAs) regarding the ESG Disclosure Regulation.

ComplianceCross-BorderDanish Regulation
21 May 2021Taxation / VATUpdates

Reclassification of Tax Transparent Entities

On 19 and 20 April 2021, the Danish tax authorities published two rulings from the Tax Assessment Council (in Danish: Skatterådet) regarding reclassification of tax transparent entities

Danish Regulation
10 May 2021ArticlesInvestors Regulation

New Danish Act on Screening of Foreign Direct Investments

The new act on control of foreign direct investments (the “Act”) was adopted on 4th May 2021. The Act introduces a new framework for government screening of foreign investments and certain types of agreements with Danish companies.

ComplianceCross-BorderDanish Regulation
25 Sep 2020Taxation / VAT

Rules Concerning the Tax Treatment of Equity Compensation to Employees in Startups

On 21 August 2020, the Danish Ministry of Taxation published for consultation a draft proposal according to which previously adopted amendments to the Danish Tax Assessment Act concerning the tax treatment of equity compensation to employees in “start-ups” will enter into force on 1 January 2021.

Danish RegulationVenture Capital
9 May 2020Taxation / VAT

Entry into Force: Guidance Signal Excluding Certain Alternative Investment Funds from VAT Exemption on Management Fees

On 7 May 2020, a guidance signal which excludes certain alternative investment funds from VAT exemption on management fees entered into force.

Danish RegulationManagement Remuneration
7 Nov 2019Taxation / VAT

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
24 Sep 2019Financial Regulation

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

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.

ComplianceDanish RegulationKYC / AMLWhistleblowing
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
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
8 Mar 2019Taxation / VAT

Guidance Signal Excludes Certain Alternative Investment Funds From VAT Exemption on Management Fees

On 8 March 2019, the Danish Tax Agency published a draft guidance signal for public hearing. If implemented, the guidance signal will exclude certain alternative investment funds from VAT exemption on management fees.

Danish RegulationManagement Remuneration
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
26 Feb 2019Taxation / VAT

EU Court of Justice Issues Ruling in Danish Beneficial Ownership Cases

The CJEU judgments will likely have a big impact on international group structures and will also contribute to the interpretation of the anti-abuse principles of EU law and the "beneficial owner" concept.

Beneficial OwnershipDanish Regulation

Other updates

2 Apr 2024AIFsUpdates

AIFMD 2.0 published in the OJEU

On 26 March 2024, directive 2024/927 amending the directives 2011/61/EU (AIFMD) and 2009/65/EC (UCITSD), also known as AIFMD 2.0, has been published in the EU Official Journal.

AIFMDRisk Management
22 Mar 2024Impact and ESGUpdates

News regarding the Corporate Sustainability Due Diligence Directive

15 March 2024, the Committee of the Permanent Representatives of the Governments of the Member States to the European Union (“COREPER”) endorsed the Corporate Sustainability Due Diligence Directive (“CSDDD”) taking the directive one important step closer to finalizing the legislative process.

Sustainability
13 Mar 2024Impact and ESGUpdates

ESG KPI report 2024 by Invest Europe

Invest Europe has published an ESG KPI report covering data from 2022. Compared to their first edition published last year (covering data from 2021), which we touched upon in our previous Pulse update, there has been a 60% increase in the number of firms covered by the survey.

Sustainability
13 Mar 2024Impact and ESGUpdates

Exposure Drafts on sustainability reporting standards for SMEs

The European Financial Reporting Advisory Group (“EFRAG”) has launched a public consultation on the Exposure Draft European Sustainability Reporting Standards for listed SMEs (“ESRS LSME ED”) and the Exposure Draft for the voluntary reporting standard for non-listed SMEs (“VSME ED”).

Sustainability
21 Feb 2024Impact and ESGUpdates

Draft guidelines on Enforcement of Sustainability Information out for consultation

The European Securities and Markets Authority (“ESMA”) has sent draft Guidelines on Enforcement of Sustainability Information (“Guidelines”) out for consultation.

ESMASustainability
19 Feb 2024Corporate RegulationUpdates

EU Proposal to expand the EU FDI-regulation

The European Commission has published a first draft of a revised regulation on the screening of foreign direct investments (“FDI”).

Cross-BorderGovernance