The duty of credit institutions to publish the assessment of the Danish Financial Supervisory Authority

Date 29 apr. 2010

On 26 March 2010, the Minister for Economic and Business Affairs issued a new executive order regarding the duty of credit institutions to publish the assessment of the Danish Financial Supervisory Authority (DFSA).

 

This entails that credit institutions have a duty to publish the reports made by the DFSA after inspecting each credit institution. Furthermore, credit institutions have a duty to publish the reports drafted by the DFSA which contain the orders, reprimands and risk information that are of importance to the costumers, depositors, other creditors or the financial markets at which the shares of the credit institution are traded according to the assessment of the DSFA.

 

The report must be published on the credit institution’s homepage in a place where it naturally belongs. Furthermore, the homepage must link to the published report in a clear and eye-catching way. The report must be published on the last business day of the quarter in which the credit institution received the report. At the same time, the credit institution must inform the DFSA that the report has been published, so that the DFSA may publish the report on its own website.

 

The removal of the report from the homepage is subject to the same principles as the removal of other messages, but the report must not be removed before the next general meeting.

 

The link on the front page may be removed when the it has been on the front page for eight continuous weeks, but not before the next general meeting. 

 

The credit institutions do not need to publish the report if the DFSA is of the opinion that it will result in the institution suffering disproportionally or if investigation will be harmed due to the publication.

 

It is not specified when the institution “suffers disproportionally”, but it must be expected that the DFSA will prohibit publication if this will lead to a “run” on the credit institution. However, it would be against the purpose of the executive order if “suffering disproportionally” meant that the credit institution’s share price would be affected.

 

The executive order went into force on 1 April 2010.

 

 

If you have questions regarding the above or require additional information on regulation of credit institutions, please contact attorney Claus Molbech Bendtsen (cmb@mwblaw.dk) or trainee Ted Rosenbaum (tro@mwblaw.dk).

 

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.