You can see the rules and regulations in other jurisdictions.
Depending on the type of service offered, EU investment companies, credit institutions and other financial institutions can passport their local European licence into Denmark, along with similar firms from the European Economic Area and third countries that have applied to the DFSA. Danish investment services may be provided cross-border, by a branch, or by a tied agent.1
After the DFSA receives notification from the supervisory authorities in the home country (passporting), EU companies are able to provide services in Denmark.1
To provide investment services cross-border or through a branch, third-country credit institutions and investment firms can apply for DFSA licences. EU firms are not covered by the passport option for either procedure, which requires a formal application to the DFSA.1
As a result, EU electronic money institutions and payment institutions can provide payment services in Denmark by offering cross-border payment services, setting up a branch or through an agent, once the relevant supervisory authority in their home country has notified the DFSA of this.1
Certain financial activities require physical presence. AIF managers (AIFMs) are required to appoint depositaries for each fund they manage under the Alternative Investment Fund Managers etc. Act. If the fund is established in an EU country, the depositary must be established in the same Member State as the fund. The same applies to the appointment of a custodian for all UCITS.2
In certain circumstances, a licence is not needed for services that would otherwise be subject to it. This option is only available in special situations and dependent on whether the connection between the entity and the customer or investor has been entirely initiated by them (reverse solicitation), or if the service is taking place in another location - for instance with deposits and custodianship or trading facilities.1
'Reverse solicitation' does not have a specific definition in Danish law, so an assessment must always be made on a case-by-case basis. In addition, the entity in question must provide DFSA with documentation that no marketing has taken place towards customers (for example, a written declaration from the investor accompanied by other documents).1
According to Danish law, undertakings cannot provide cross-border financial services without obtaining a relevant licence or passporting a local licence into Denmark, as is often the case when onboarding customers virtually and electronically (through, for example, a website, app, or web-based interface). To determine whether the service provided by a fintech company falls under the financial regime and how customers or partners access or use the service, it is crucial to conduct a case-by-case analysis of the specific service provided by that company. If the (fintech) service falls within the scope, it will be subject to licensing requirements regimes with cross-border options.1
We work for international SMEs, startups and Telco's
Legal support for FinTech and Blockchain projects
Comprehensive legal services for businesses on corporate, tax law, cryptocurrency legislation, investment activities
