Speculation

Internal guidelines for financial transactions relating to employees of the Danish FSA, the opportunities of employees to operate an independent business undertaking etc. and notification and approval of loans etc.

 

§ 1

(1) Employees of the Danish FSA shall not conduct or participate in speculative business at their own expense, cf. section 356(2) of the Financial Business Act. 

(2) Speculative business shall mean transactions covered by section 77(1), nos. 1-4 of the Financial Business Act.

(3)  All employees, except for the executive management shall, pursuant to sections 2-5, notify the Administrative Director of the Danish FSA of investments and similar transactions within two weeks after the relevant transaction.

 

§ 2

Taking up loans or drawing on previously granted credits in order to purchase securities shall be notified with documentation that the securities purchased are not to be used as security for the loan or the credit, cf. section 77(1), no. 1 of the Financial Business Act. 

 

§ 3

Transactions with derivative financial instruments, covered by section 77(1), no. 2 of the Financial Business Act, shall be notified with documentation that the transaction serves as risk hedging, and documentation in the form of calculations that the transaction has led to a quantifiable minimisation of risk.  However, notification shall not be made for normal fixed-rate agreements in connection with uptakes or repayments of mortgage loans.

 

§ 4

Sales of equity investments covered by section 77(1), no. 3 of the Financial Business Act within six months after acquisition of these, shall be notified with documentation that the acquisition cannot be regarded as having been made for the purpose of sale earlier than six months after the acquisition. The acquisition shall not be regarded as having been made for the purpose of sale, if the sale takes place as a consequence of periods of financial hardship, or if the investments derive from inheritance, gifts or administration of community property, compensation, allowances and similar.

 

§ 5

Loans in a foreign currency other than EUR, covered by section 77(1), no. 4 of the Financial Business Act, shall be notified if they are made with a view to acquiring real property and fittings/accessories hereto. Notification shall include documentation in the form of a loan document, title deed, invoice or receipt etc. proving that the loan has been used to acquire said real property or fittings/accessories hereto.