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My investments

When you trade securities at the bank, you can either trade on your own initiative or the bank can advise you on the best investment options. Advice means that the bank will recommend that you buy or sell certain securities either on the banks initiative or your own initiative.

When the bank advises you about trading securities, it will collect information from you about:

  • your experience with trading securities
  • your financial situation and your capability of bearing any losses
  • the aim of your investment in securities i.e. a short-term or long-term investment

The information will serve as the foundation for the personal recommendations from the bank.

You can choose to trade securities without receiving advice; however the bank will still collect information from you about your experience with trading securities if it is difficult to comprehend and weigh up the securities. In this way the bank can inform you of whether it is opportune to buy the securities.

If you have a capital pension scheme, annuity pension scheme or retirement pension scheme with your bank, you can choose to invest your pension funds directly in securities.

In this case, securities would be traded in a separate depository that would be connected to your pension account. Pension funds cannot be freely placed in all kinds of securities, but they can be placed in i.e. unlisted and listed shares, bonds, unit trusts and foundations.

The detailed rules for investing in securities and the limits that must be honoured can be found in the Danish FSAs Order on Certain Forms of Savings in Financial Institutions Offering Favourable Tax Treatment, see BEK No. 1056 of 07/09/2015.

Danish securities are typically issued and stored electronically in the Danish securities depository, VP SECURITIES (VP). In Denmark, individual investors have a personal custody account at the securities depository, which is managed by an account-holding institution, typically the account holders bank provider.

When you trade securities, trading is also settled by VP, which moves the traded securities between your custody account and your counterparts custody account, while also moving money the other way. At VP money and securities are always settled at the same time to minimise the risk of one party delivering their part of the deal without receiving payment for it.

VP was previously an independent institution, but today it is a public limited company, owned by its users, including the Central Bank of Denmark, mortgage institutions and institutional investors and banks.

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Finance Denmark is a business association for banks, mortgage institutions, asset management, securities trading and investment funds in Denmark. Our members are mortgage institutions, banks, savings banks, cooperative savings banks, Danish branches of foreign banks, asset managers, Danish securities dealers and investment funds.

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