In May 1997 the Danish Parliament adopted an Act (No. 475/1997) amending the regulation of the activities of executive officers of insurance companies, banks, mortgage institutions etc. Most sections of the Act come into force on January 1 1998.
Under the Act, executive officers and certain in-house auditors may not participate in 'speculative transactions'. 'Speculative transactions' will be defined in a regulation containing an exhaustive list of all capital investments considered speculative transactions. Capital investments included in the list may not be made regardless of the intention or the purpose of the investment (it is, however, likely that a minimum threshold will be introduced).
The regulation has not yet been issued, but according to information obtained from the Danish Financial Supervisory Authority, it will also come into force on January 1 1998.
The Act also contains detailed rules limiting top executive officers' ability to become members of the boards of directors of other companies.
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