Application form to use by credit institutions and investment firms from the United Kingdom when applying for a license pursuant to section 33 of the Financial Business Act

The Danish Financial Supervisory Authority encourages applicants to submit the application before 15 October 2020 in order to be sure that the Danish Financial Supervisory Authority is able to assess the application before the end of the transitional period entered into between the EU and the United Kingdom.

The United Kingdom left the EU on 31 January 2020. In this connection, the EU and United Kingdom entered into a transitional agreement, which includes credit institutions and investment firms from the United Kingdom being able to continue to provide investment services and activities to customers in Denmark up to 31 December 2020. When the transition period expires, credit institutions and investment firms from the United Kingdom will no longer have access to provide investment services and activities in Denmark, unless they have a separate license from the Danish Financial Supervisory Authority.       

Credit institutions and investment firms from the United Kingdom that intend to provide cross-border investment services and activities in Denmark to Danish eligible counterparties and per se professional clients after the end of the transitional period can apply to the Danish Financial Supervisory Authority for a license in accordance with section 33 of the Financial Business Act.

Licenses granted under section 33 of the Financial Business Act to credit institutions and investment firms from the United Kingdom up to the end of the transitional period will be conditional and temporary.

Credit institutions and investment firms from the United Kingdom must use the application form pro-vided by the Danish Financial Supervisory Authority:

Application form for credit institutions and investment firms from the United Kingdom when applying for a license pursuant to section 33 of the Danish Financial Business Act

Please follow the instructions given in the application form and please fill out all relevant fields and boxes in order for the Danish Financial Supervisory Authority to be able to assess the application.

The application shall be sent to applicationsection33license@ftnet.dk

Q&A

What does “Name(s) of management” under “Contact information” refer to?
As minimum the names of the CEO, the chairman and deputy chairman of the board of directors and the person being responsible for the activities in Denmark or overseas in general.

What does it mean that the license is temporary?
Licenses to credit institutions and investment firms from the United Kingdom pursuant to section 33 of the Financial Business Act will in light of the uncertainty surrounding Brexit be granted for a 18-month period from the end of expiration of the transitional agreement entered into between the EU and the United Kingdom. 

What does it mean that the license is conditional?
Licenses to credit institutions and investment firms from the United Kingdom pursuant to section 33 of the Financial Business Act can only be granted to investment services and activities as well as financial instruments that are covered by the applicant’s license with the Prudential Regulation Authority and/or the Financial Conduct Authority.

A license will be conditional on:

  • The United Kingdom becomes a third country as defined in MiFID II, Article 4(1), no. 57.(*) 
  • The EU has not entered into an agreement for the financial area with the United Kingdom and the Commission has not adopted an equivalence decision for United Kingdom in accordance with MiFIR, Article 47(1), or such a decision is no longer valid.(**) 
  • The Danish Financial Supervisory Authority and the relevant competent authority/authorities in the United Kingdom have signed agreements concerning consultation and cooperation and the exchange of information relevant for the supervision of undertakings performing investment services and activities. 
  • The Danish Financial Supervisory Authority is not and does not come into possession of any adverse information on the applicant of relevance to a license pursuant to section 33 of the Danish Financial Business Act and Executive Order No. 918 of 26 June 2017. 

Furthermore, the license is based on the supposition of an adequate regulation in the United Kingdom governing investment services and activities as well as an adequate supervision of financial undertakings conducting investment services and activities in the United Kingdom. 

A license will be revoked, should the Danish Financial Supervisory Authority assess that the above mentioned conditions are no longer fulfilled.

(*) Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments
(**) Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments

What obligations are a holder of a license pursuant section 33 of the Danish Financial Business Act subject to?

Holders of a temporary and conditional license pursuant to section 33 of the Financial Business Act are subject to both the Financial Business Act, cf. section 1(6), and the Capital Market Act, cf. section 2(1) no. 4. 

Section 1(6) in the Financial Business Act states that for services with securities trading carried out in Denmark by investment firms and credit institutions, which have been granted a license in a country outside the European Union with which the Union has not entered into an agreement for the financial area and where the Commission has not adopted an equivalence decision in accordance with MiFIR, Article 47, subsection 1, or such a decision is no longer valid, sections 6, 6a, 6b, 33, 43, 46a, 46b, 347, subsection 1, 348 and 373, subsection 3 and 5, shall apply. 

Please note in particular that section 43, subsection 1, of the Financial Business Act states that financial undertakings shall be operated in accordance with honest business principles and good practice within the field of activity.

Moreover, attention should be drawn to the fact that the above mentioned acts and executive orders may not be exhaustive and that the legislation continuously will be updated.