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Framework legislation

UCITS (investment funds, SICAVs and securities funds) and Investment fund management companies are governed by the Danish Act on Investment Associations and Special-Purpose Associations as well as other Collective Investment Schemes, etc. (only in Danish)

Alternative investment fund managers including kapitalforeninger (AIFs), are governed by the Alternative Investment Fund Managers etc. Act (AIFM Act).

In addition to the acts, a number of detailed rules in the form of executive orders and guidelines have been published. You can find an updated list of executive orders and guidelines on the Danish Financial Supervisory Authority's home page:

Moreover, the EU Commission has issued more detailed rules in the form of regulations. These regulations apply directly in Denmark.

Finally, the European Securities and Markets Authority (ESMA) has issued a number of guidelines. These guidelines are included as interpretations of the EU rules. By means of the guidelines, ESMA indicates what it finds to be good supervisory practice.

You can also find regulations and guidelines on the Danish Financial Supervisory Authority's home page:

 

UCITS

Danish UCITS are governed by the Danish Act on Investment Associations, etc. The act contains provisions that implement the Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (the UCITS Directive).

The Danish Act on Investment Associations, etc. contains rules on:

  • Permission to manage UCITS and requirements in respect of articles of association and fund provisions
  • Good business practice
  • Annual general meeting and management, etc.
  • Annual reports
  • Prospectuses and key investor information
  • Discontinuation
  • Investment of funds and liquidity
  • Supervision

 

Investment managers and Kapitalforeninger (AIFs)

Alternative investment fund managers are governed by the Alternative Investment Fund Managers, etc. Act. The act implements the Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011 on Alternative Investment Fund Managers (the AIFM Directive).

  • The Alternative Investment Fund Managers, etc. Act contains rules on:
  • Permission and activity area
  • Terms in respect of managers' operations
  • Organisational requirements
  • Transparency, etc.
  • Cross-border marketing and management
  • Annual reports and managers
  • Supervision

The Alternative Investment Fund Managers, etc. Act also contains rules on Kapitalforeninger (AIFs), which are alternative investment funds. A Kapitalforening (AIF) must have a manager and a separate permission in order to market itself to private investors.

A Kapitalforening (AIF) has permission to invest in financial instruments comprised by appendix 5 in the Danish Financial Business Act or in liquid funds, including foreign currencies.

 

Investment fund management companies

Danish Investment fund management companies are governed by the Danish Financial Business Act.  (Only in Danish)

The act contains rules on:

  • Permission to operate as an investment fund management company
  • Activity area
  • Good business practice
  • Management and ownership matters
  • Capital structure
  • Annual reports
  • Supervision

An investment fund management company may have permission to operate as an investment fund management company and as the manager of e.g. kapitalforeninger (AIFs). Investment fund management companies are the only financial companies that can obtain a double permission to managing both UCITS and kapitalforeninger (AIFs).

 

The Danish Financial Supervisory Authority

The Danish Financial Supervisory Authority is monitoring that UCITS, investment fund management companies and managers of alternative investment funds comply with the applicable legislation. The Danish Financial Supervisory Authority is a government agency under the Ministry of Business and Growth, which has the overall political responsibility of the legislation governing financial sector activities.

Via its supervisory activities, the Danish Financial Supervisory Authority is to contribute to underpinning financial stability and the confidence in the financial enterprises and markets.

The Danish Financial Supervisory Authority is among other things supervising corporate organisation, management and compliance procedures, etc. The Danish Financial Supervisory Authority is operating partly on the basis of regular reporting and partly on the basis of inspection. When performing inspections, the Danish Financial Supervisory Authority visits the individual UCITS, investment fund management companies and alternative investment fund management companies and review material matters.
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Sidst opdateret: 27–2–2017