Revision of the Investment Screening Act has entered into force
Published 7 July 2023
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.
On 3 May 2023 – after a public consultation – the government submitted a revised proposal, which has now entered into force.
Before the revision, public contracts were only subject to screening if they fell within the Act’s definitions of investments or special economic agreements. To further protect Danish infrastructure and national security, it was considered that the contracting parties – regardless of domicile and nationality – should apply for permission before entering public contracts within the energy sector as a whole.
After pushback in the public consultation, the proposal was changed to only cover parties to contracts concerning the establishment, ownership, and operation of the energy island in the North Sea.
This means that all parties – regardless of domicile and nationality – contracting to establish, own or operate the energy island will need a prior permission before entering into the relevant contract.
This requirement does not only cover the contracting party, but also any subcontractors hired by the contractor. Thus, the Danish Business Authority can require a list of the subcontractors that are expected to be hired. Where the subcontractors will not be identified until later, the Danish Business Authority can condition the permission upon the subcontractors also be given permission.
The review by the Danish Business Authority shall now be divided into two stages. The review for uncomplicated matters shall be reduced to 45 working days (as opposed to previously 60 days) from receipt of a complete application. In more complicated matters, a second stage may be initiated, which further extends the deadline by 125 days. The stage two review will be based on a more comprehensive application form.
As before, if the Danish Business Authority exceeds the deadlines, it will have no effect on the applicant’s legal position and will not result in automatic permission or similar.
Read the amendment act here.
Also tagged ‘Danish 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.Danish RegulationGovernance
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
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
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
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 areaComplianceDanish RegulationSustainability
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
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
On 6 April 2022, the Danish Government presented a proposal for an amendment of, among others, the Danish Corporation Tax Act.Danish RegulationManagement Remuneration
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
The Commission has answered a number of questions from the European Supervisory Authorities (ESAs) regarding the ESG Disclosure Regulation.ComplianceCross-BorderDanish Regulation
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
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
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
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
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
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
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
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
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
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
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
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
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
The European Commission has earlier this year published a number of targeted proposals to amend the PRIIP Level 1 Regulation, implementing more modern rules on how a PRIIP Key Information Document (KID) is provided to investors. The proposed changes aim to change the content of the (KID) which must be provided to retail investors before investing.KID / PRIIPS
On 30 August 2023, the Danish Financial Supervisory Authority (“DFSA”) published a memo describing the requirements in SFDR art. 11 for periodic reporting.ComplianceDisclosure RequirementsSustainability
The progress reports are a result of a push from stakeholders requesting greater market integrity, investor protection and trusted environments for sustainable investments as sustainability has become an important competitive factor.ESMASustainability
On 31 July 2023 the European Commission adopted European Sustainability Reporting Standards (ESRS) which are mandatory standards for companies under CSRD to use when reporting on sustainability information.Sustainability
The updated guide takes regulation and guidance from public consultations and Q&A’s since July 2022 into account. Further, it reflects the most recent market practice on the application of the regulations.ComplianceDisclosure RequirementsSustainability