Details

  • Service: Tax, International Corporate Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 2/22/2012

Denmark - Guidelines on remuneration policies of financial institutions and holding companies 

February 22:   The Danish Financial Supervisory Authority (Finanstilsynet) updated the rules and issued guidelines concerning the remuneration policies of financial institutions and the taxation principles applying to such remuneration.

In December 2010, the Danish Financial Supervisory Authority published an executive order on remuneration policies in financial institutions.


On 9 February 2012, the Financial Supervisory Authority published an updated executive order regarding remuneration policies and remuneration of financial institutions and financial holding companies as well as long-awaited guidelines on the interpretation of the provisions on remuneration contained in the Danish Financial Business Act (lov om finansiel virksomhed—FIL).


The rules in brief

Financial companies' remuneration policies must promote sound and effective risk management.


A remuneration policy must include guidelines regarding the allocation of variable remuneration as well as guidelines for severance pay. The remuneration policy must be approved at the general meeting. For a detailed description of these rules, see KPMG’s November 2010 report (PDF 44 KB) (in Danish) in which the proposed legislation was described.


What's new?

The KPMG member firm in Denmark has prepared a brief description of the variable components of remuneration paid to substantial risk-takers and to members of boards of directors and executive boards, as introduced by the updated executive order and the Financial Supervisory Authority's guidelines.


To read the February 2012 report prepared by KPMG in Denmark: New guidelines and statutory order regarding remuneration policies in financial institutions and financial holding companies (PDF 102 KB)




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Washington, DC 20006.

 

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