New post-Brexit application procedure for investment services in Denmark
Upon expiry of the current transitional period on 31 December 2020, UK credit institutions and investment firms will no longer (unless an agreement to the contrary is entered into between EU and UK) have access to provide investment services in Denmark, unless authorised by the Danish Financial Supervisory Authority under the national regime in Section 33 of the Danish Financial Business Act.
On 20 August 2020, the Danish Financial Supervisory Authority (Danish FSA) announced a special application procedure designed for UK credit institutions and investment firms (UK Firms) wishing to have the right to provide investment services in Denmark after 31 December 2020 by obtaining authorisation as third country firms.
Any previous conditional authorisations obtained by UK Firms have lapsed, because they were contingent upon a no-deal Brexit before the entry into force of the withdrawal agreement. Accordingly, all UK Firms must apply again, notwithstanding any prior authorisations.
Any new authorisation granted will remain subject to no agreement on mutual recognition being put in place between UK and EU.
- A special application form will be published by the Danish FSA on 14 September 2020. We do not expect that applications can be made prior to that date.
- The Danish FSA has announced that applications must be filed before 15 October 2020. We assume the cut-off date is to ensure that all applications can be processed prior to the expiry of the transitional period.
The financial regulatory team at Kromann Reumert is ready to service those UK Firms that may need assistance with the process.