Danish cross-border license Applications reopening
10 March 2022
Good news for UK firms providing cross-border investment services and activities into Denmark!
The Danish Financial Supervisory Authority (the "FSA") announced in 2020 a temporary cross-border license enabling third country firms to provide investment services in Denmark. This measure was set to expire on 30 June 2022.
Good news: the Danish FSA has recently announced on 3 March that applications are now open for third country investment firms and credit institutions to (a) obtain a new license or (b) renew their existing license to carry out investment services and activities on a cross-border basis for per se professional clients and eligible counterparties without the establishment of a branch.
To be eligible for a license, the following conditions apply:
- the third country firm must be authorised and regulated in its local jurisdiction, in respect of the investment services and activities it would like to carry out in Denmark;
- the European Commission has not yet adopted an equivalence decision in respect of the third country where the firm is authorised and regulated (the UK currently satisfies this condition);
- the Danish FSA and the third country's competent authority have signed agreements concerning the cooperation and exchange of information relevant to the supervision of firms performing investment services and activities (the UK has signed such an agreement with Denmark); and
- the Danish FSA does not have any adverse information relating to the firm's proposed provision of investment services and activities into Denmark.
If granted, the license will last for 3 years, after which firms wishing to continue providing cross-border investment services and activities into the jurisdiction will need to renew their licenses.
To apply, firms must complete the FSA's standard application form and submit it to thirdcountrycrossborderlicense@ftnet.dk.Following receipt of a completed application, the FSA will take up to 60 days to respond.
Action: Firms with licenses due to expire on 30 June 2022 must apply by no later than 27 April 2022 (but the FSA encourages firms to apply by 15 April 2022). So firms need to move now.
