Financial Supervisory Authority (Denmark)
Encyclopedia
The Danish Financial Supervisory Authority (DFSA) () is the financial regulatory
authority of the Danish government
responsible for the regulation of financial markets in Denmark
.
Finanstilsynet is part of the Ministry of Economic and Business Affairs
and also acts as secretariat for the Financial Business Council, the Danish Securities Council and the Money and Pension Panel.
In January 1990, the Supervisory Authority for Mortgage Credit Institutions was transferred to Finanstilsyne from the Danish Housing Agency. However political responsibility for mortgage credit remained with the ministry of housing and so Finanstilsynet reported to both the Minister for Housing and the Minister for Economic Affairs until 1994 when political responsibility was passed to the Minister for Economic Affairs.
In November 2001 the Ministry of Economic Affairs merged with the Ministry of Business and Industry. Since then the Minister of Economic and Business Affairs has been responsible for Finanstilsynet.
, stock exchanges, securities and money market brokers
, clearing and registration organizations
, insurance companies, pension funds, insurance brokers
, investment companies
and investment associations.
Its stated aims are to;
(CESR), which is actively contributing to the harmonisation of financial regulation in Europe.
Finanstilsynet is also a member of the International Organization of Securities Commissions
(IOSCO), and is a signatory of the IOSCO multilateral Memorandum of Understanding (MoU) to cooperate with other countries securities commissions
.
Financial regulation
Financial regulation is a form of regulation or supervision, which subjects financial institutions to certain requirements, restrictions and guidelines, aiming to maintain the integrity of the financial system...
authority of the Danish government
Government of Denmark
Denmark is a constitutional monarchy with a representative democracy based on a unicameral parliamentary system. The affairs of Government are decided by a Cabinet of Ministers, which is led by a Prime Minister...
responsible for the regulation of financial markets in Denmark
Denmark
Denmark is a Scandinavian country in Northern Europe. The countries of Denmark and Greenland, as well as the Faroe Islands, constitute the Kingdom of Denmark . It is the southernmost of the Nordic countries, southwest of Sweden and south of Norway, and bordered to the south by Germany. Denmark...
.
Finanstilsynet is part of the Ministry of Economic and Business Affairs
Minister of Economic and Business Affairs (Denmark)
The Ministry of Economic and Business Affairs is a ministry in the current Danish government.Lene Espersen has held the ministry since the 10th of September 2008....
and also acts as secretariat for the Financial Business Council, the Danish Securities Council and the Money and Pension Panel.
History
Finanstilsynet was established on the 1 Jan 1988 with the merger of the Supervisory Authority for Banks and Savings Banks and the Insurance Supervisory Authority.In January 1990, the Supervisory Authority for Mortgage Credit Institutions was transferred to Finanstilsyne from the Danish Housing Agency. However political responsibility for mortgage credit remained with the ministry of housing and so Finanstilsynet reported to both the Minister for Housing and the Minister for Economic Affairs until 1994 when political responsibility was passed to the Minister for Economic Affairs.
In November 2001 the Ministry of Economic Affairs merged with the Ministry of Business and Industry. Since then the Minister of Economic and Business Affairs has been responsible for Finanstilsynet.
Responsibilities and functions
It is responsible for regulation, supervision and collecting statistics of financial participants. These include; banksBank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
, stock exchanges, securities and money market brokers
Broker-dealer
A broker-dealer is a term used in United States financial services regulations. It is a natural person, a company or other organization that trades securities for its own account or on behalf of its customers....
, clearing and registration organizations
Clearing house (finance)
A clearing house is a financial institution that provides clearing and settlement services for financial and commodities derivatives and securities transactions...
, insurance companies, pension funds, insurance brokers
Insurance broker
An insurance broker finds sources for contracts of insurance on behalf of their customers. The three largest insurance brokers in the world, by revenue, are Aon, Marsh & McLennan, and Willis Group Holdings.-Purpose of insurance brokers:...
, investment companies
Investment company
An investment company is a company whose main business is holding securities of other companies purely for investment purposes. The investment company invests money on behalf of its shareholders who in turn share in the profits and losses....
and investment associations.
Its stated aims are to;
- strengthen the market's role as a disciplinary factor through enhanced transparency
- intensify management's consideration of the risk profile
- improve consumers' possibilities to compare prices and products among companies.
Organization structure
Finanstilsynet is run by an executive management team that report to the minister of Economic and business affairs. The executive is made up of a Director general and three deputy director generals. Each deputy is assigned a subsection of the responsibilities of the agency.International
Finanstilsynet is a member of the Committee of European Securities RegulatorsCommittee of European Securities Regulators
The Committee of European Securities Regulators was an independent committee of European Securities regulators established by European Commission on June 6 of 2001...
(CESR), which is actively contributing to the harmonisation of financial regulation in Europe.
Finanstilsynet is also a member of the International Organization of Securities Commissions
International Organization of Securities Commissions
The International Organization of Securities Commissions is an association of organisations that regulate the world’s securities and futures markets....
(IOSCO), and is a signatory of the IOSCO multilateral Memorandum of Understanding (MoU) to cooperate with other countries securities commissions
Securities Commission
Securities Commission a statutory body entrusted with the responsibility of regulating and systematically developing the capital markets in Malaysia.-History:...
.
See also
- Economy of DenmarkEconomy of DenmarkWith very few natural resources, the economy of Denmark relies almost entirely on human resources. The service sector makes up the vast amount of the employment and economy. Its industrialised market economy depends on imported raw materials and foreign trade. Within the European Union, Denmark...
- Securities CommissionSecurities CommissionSecurities Commission a statutory body entrusted with the responsibility of regulating and systematically developing the capital markets in Malaysia.-History:...
- Danmarks NationalbankDanmarks NationalbankDanmarks Nationalbank is the central bank of the Kingdom of Denmark. It is a non-eurozone member of the European System of Central Banks . The bank issues the Danish currency, the krone....
- :Category:Banks of Denmark