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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