New executive order on other collective investment schemes

Date 1 sep. 2008

The Danish Financial Supervisory Authority has issued a new executive order on other collective investment schemes in the code (“the Executive Order”). The executive order has been issued with legal basis in Section 115 of The Investment Associations and Special-Purpose Associations Consolidated Act (“LIS”).


Section 115 of LIS regulates the collective investment schemes which are not investment associations, special-purpose associations or hedge-associations. Section 115 of LIS complies with the International Organisations of Securities Commissions’ (“IOSCO”) standards for collective investment schemes. According to these standards, collective investment schemes must be regulated in consideration of the investors, so that the investors may hand over their funds to the scheme, trusting the administrator of the scheme to comply with the requirements for management, presentation of accounts, good practise etc. of financial legislation.  The fact that the companies administrating the scheme must comply with requirements of financial legislation, including being submitted to an individual financial inspection, thereby regulates the Section 115-scheme.


LIS Section 115 determines that another collective investment scheme must produce a set of rules describing the scheme, typically in the form of either the articles of association of the scheme or terms and conditions. Furthermore, the scheme must also produce a contract document when offerings of the scheme not covered by chapter 12 of the Danish Securities Trading Act take place.


This is a requirement for the set of rules and the contract document mentioned, which , among other things, is determined in the executive order.


The executive order adds to the former executive order a few requirements for the contents of the set of rules. These requirements are also stated in Section 115(3) of LIS, and in relation to the executive order the requirements must, thus, be stated herein for the sake of clarity.


With regards to the contract document, the executive order contains amendments which serve transparency purposes. Hence, the company administrating the scheme must announce any commenced consultancy agreements in the contract document. Furthermore, a requirement has been added stating that it must appear from the contract document with whom and where the securities are being kept as well as the date of the issuance of the contract document.


Finally, terminological changes have been added with a view to making the executive order MiFid- conforming.


If you have questions or comments regarding the above, please contact attorney Dan Moalem ( and attorney Anders Gintberg Levin (



The above does not constitute legal counselling, and Moalem Weitemeyer Bendtsen does not warrant the accuracy of the information. With the above text, Moalem Weitemeyer Bendtsen has not assumed responsibility of any kind as a consequence of a reader’s use of the above as a basis of decisions or considerations.