Danish Financial Supervisory Authority (FSA)

Basic Information

The Danish Financial Supervisory Authority (FSA), known as Finanstilsynet, is Denmark’s primary financial regulatory body operating under the Ministry of Economic and Business Affairs. Established to ensure stability, trust, and efficiency in the financial system, it supervises banks, insurance companies, pension funds, investment firms, mortgage credit institutions, and other financial entities. Headquartered in Copenhagen, the FSA enforces compliance with financial legislation, promotes market transparency, and safeguards consumer and investor interests.

Historical Background

The FSA was formed on January 1, 1988, through the merger of Denmark’s Supervisory Authority for Banks and Savings Banks and the Insurance Supervisory Authority. In 1990, it expanded its jurisdiction by incorporating oversight of mortgage credit institutions. Initially reporting to both the Minister for Housing and the Minister for Economic Affairs, it consolidated under the Ministry of Economic and Business Affairs after governmental restructuring in 1994 and 2001. Over decades, the FSA has evolved to address modern financial challenges, including anti-money laundering (AML) and digital financial services.

Legal Authority & Regulatory Framework

The FSA derives its authority from Danish financial legislation, including the Danish Financial Business Act and Executive Order 1304 on outsourcing. It aligns with EU directives through membership in the European Securities and Markets Authority (ESMA) and the European Banking Authority (EBA). Key guidelines include enforcing risk management protocols, AML compliance, and contractual obligations for cloud service providers under Executive Order 877. The FSA also collaborates with international bodies like IOSCO to harmonize global financial standards.

Core Responsibilities & Scope

• Supervision: Conducts inspections of financial institutions, reviews compliance with capital adequacy rules (CRD/CRR), and monitors risk management practices.
• Consumer Protection: Operates dedicated hotlines for consumer complaints and investment disputes.
• Market Integrity: Investigates market abuse, insider trading, and ensures listed companies comply with transparency requirements under EU regulations.
• AML Enforcement: Mandates transaction monitoring and sanctions screening for regulated entities.
• Policy Development: Drafts financial legislation and issues executive orders to adapt to emerging risks, including cybersecurity and fintech innovations.

Contact Information

• Phone: +45 33 55 82 82 (Mon–Thu: 09:00–16:00; Fri: 09:30–15:00)
• Email: Use the online contact form for topic-specific inquiries.
• Address: Finanstilsynet, Copenhagen, Denmark (exact office details available upon request).
• EAN: 5798000021006 | CVR: 10598184.

Verifying Regulatory Status

To confirm if an entity is regulated by the FSA:

1. Access the Danish FSA Company Register at https://virksomhedsregister.finanstilsynet.dk, which lists all authorized financial firms.
2. Cross-reference public supervisory statements on the FSA website, including inspection reports and enforcement actions.