The DFSA is a government agency under the Ministry of Industry, Business and Financial Affairs.
We supervise the financial sector in Denmark. The objective is to ensure resilient and reliable financial companies that comply with applicable legislation, treat consumers with loyalty and honesty, and contribute to a sound and stable macroeconomic environment.
Our work encompasses a wide range of activities, which can be grouped into three main areas: supervision, regulation, and information.
Supervision
We supervise financial companies, including credit institutions, mortgage credit institutions, pension funds, insurance companies, investment funds, manager of investment funds and investment firms.
Our supervisory approach is risk-based. This means we focus primarily on areas where we assess that the risk of non-compliance or operational failure is highest, and where the potential negative impact would be most significant – for the institutions concerned, for the financial system, and ultimately for society at large.
A central element of our work is prudential supervision. This entails monitoring whether companies hold adequate capital relative to the risks they assume.
We also supervise compliance with the broader financial regulatory framework, including accounting and auditing requirements applicable to the relevant entities.
Danish regulation includes provisions aimed at safeguarding consumer protection. We therefore monitor whether companies conduct their business in a reliable and responsible manner towards consumers. This includes obligations to provide clear and adequate information, for example regarding the pricing of financial products and services. Our conduct supervision also covers insurance brokers and investment advisers. Among other things, we ensure that they comply with rules on good business practice and that they maintain appropriate insurance cover for their activities.
We also supervise securities markets in Denmark. This includes monitoring whether public companies comply with their obligation to disclose inside information and other material information to the market. Furthermore, we approve prospectuses to be published when securities are admitted to trading. Our market supervision also includes surveillance of trading activity to detect and address market abuse, such as insider dealing and market manipulation.
Regulation
We contribute to the development of financial regulation in Denmark, including the drafting of executive orders and guidelines within our remit.
The DFSA also participates in negotiations on new financial regulation at the EU level.
Information
We provide information about our responsibilities and how we carry out our work. We present developments in the Danish financial sector through statistical reporting and continuous updates on areas of focus, applicable rules, supervisory practices – and more.
We also have a special communication obligation towards consumers, so they can make informed decisions about their finances with confidence in the financial system.