Increased powers of Financial Supervisor
In May 1996 (Act No. 276) Denmark implemented the EU BCCI Directive (95/26), thereby making it possible for the Danish Financial Supervisory Authority (FSA) to refuse authorization to financial companies where the FSA finds that close connections between the financial company and other companies or persons prevent the FSA from performing its duties.
By the same Act, the FSA was also empowered to appoint a co-auditor in banks and to order a bank to prepare a report setting out the bank's financial position and prospects. Furthermore, the FSA may in certain circumstances require a bank to make additional provisions.
By Act No.382, from May 1996 the Danish Bankruptcy Act has been amended with the purpose of smoothing the handling of bankruptcy estates and giving creditors greater influence on the handling of estates. The powers of the trustee have been increased. The Act has effect for bankruptcies after June 1 1996.