Egnethed og hæderlighedskrav til ledelsen af finansielle virksomheder: Med særligt fokus på pengeinstitutter

Fikri Memis

Student thesis: Master thesis

Abstract

The financial crisis had negatively affected the real economy of several European countries. On the aftermath of the financial crisis the European Commission instructed the former president of European Bank for Reconstruction and Development, Jacques de Larosiere to chair an expert group in order to outline the future of European financial regulation and supervision. The Larosiere report outlined several causes of the financial crisis including macroeconomic factors, failure in risk assessment, insufficient supervision and control of the boards and managements, lack of understanding the financial products, supervision deficiencies on national plan etc. The financial agenda in Denmark focused also on the boards and managements of the banks. The investigations of the circumstances of the bankrupt banks showed that there was a lack of effective management both from the boards and senior managements, the boards did not conduct a necessary supervision and control of the management and they were not able to challenge the management in a proper way and the managements were characterised by having a high risk profile. These factors led to an amendment of the Danish Financial Business Act that was adopted on the 27th of May 2010. The major amendments concerned the fit & proper requirements for the members of the board and management. The amendment gave the Danish Financial Services Authority an enhanced power to dismiss those persons who did not meet the criteria’s. These fit & proper requirements are very restrictive compared to the requirements set out by normal Company Law. The thesis contains a legal and economic analysis of the fit & proper requirements for the members of the board and management of a financial institution. From the legal analysis it was derived that the amendment of the Danish Financial Business Act enhanced the power of the Financial Services Authority and that the authority will involve all relevant factor when deciding whether a person’s behavior are in breach with the fit & proper requirements. It was derived from the economic analysis that the bankrupt banks had a high risk profile particularly expressed by the unusual growth in lending which primarily financed risky real estate project/investments. Finally it was derived that the restricted fit & proper requirements are appropriate due to the great impact the financial institutions have on the society.

EducationsMSc in Commercial Law, (Graduate Programme) Final Thesis
LanguageDanish
Publication date2013
Number of pages75