On Aug. 27, DEN FSA consulted on draft on management, governance.
DEN FSA consulted on draft order re stockbroking companies management and control.
Overview
Drafted per §67 subsec 6, §68 subsec 2, §94 subsec 4, §270, subsec 1 of Act on stockbroking companies, investment services, activities Legislative Act 232/2024.
The purpose of the executive order is to separate investment brokerage companies from the executive order on management for financial institutions.
So the requirements for these companies appear in a separate executive order that reflects companies' business models and risks.
The order will apply to stockbroking companies and stockbroking holding companies.
In its application scope it distinguishes between three classes i.e. large, medium and small brokerage firms, which are subject to different requirements.
The draft for fund broker management executive order prepared on basis of system known from executive order for financial institutions management.
Structure and system from order on financial institutions' management to be kept.
With draft, large number of language, content adaptations are made re current rules in management order for financial institutions to adapt to stockbroking companies.
Adjustments made to order's division of risks; adaptations to annexes to order, some annexes from management executive order from financial institutions are deleted.
Effectiveness
Comments on draft to be received until Sep. 24, 2024 at 12:00; draft sent to some organizations for consultation (list provided); proposed entry into force: Jan. 17, 2025.
Dec. 2024 Order
On Dec. 19, 2024, DEN GVT issued executive order on management and governance.
