Adoption of act on increased liability for members of management in financial undertakings

Legal News
On 18 April 2023, the Danish Parliament passed a bill amending the Financial Business Act, the Criminal Code, and a number of other acts. The bill implements the political agreement of 16 June 2022 on "Increased liability assessment for members of management in financial undertakings and broader recruitment basis for managements in the financial sector", which is based on the Liability Committee's Report No 1575 (January 2021).

The bill introduces amendments to financial and criminal regulations which political stakeholders have deemed necessary to increase the liability of management and key individuals for their actions.

The most significant amendments to financial regulation include:

  • enhanced assessment of the liability of members of management, etc. in financial undertakings, both criminal liability and tort liability
  • increased regulation of severance payments
  • broader and more transparent recruitment basis for managements

Since its introduction on 8 February 2023, the bill has primarily undergone technical modifications.

Plesner reviewed the main contents of the bill – including the amendment adopted - in this Insight: New bill on increased liability for managements of financial undertakings.

The provisions enter into force on 1 July 2023.

Read the bill as adopted

Do you want to know more?

On 17 May 2023, Plesner will be hosting an event on the importance of the new rules. All interested parties are welcome.

A number of experts will discuss the potential consequences which the new legislation is expected to have regarding the future managerial liability for members of management in financial undertakings. 

See the invitation to the event  (in Danish)