Denmark has drawn up a new piece of draft legislation to separate existing pensions and insurance law from banking law - an initiative welcomed by the country’s pensions and insurance lobby.
The Danish FSA (Finanstilsynet) yesterday published the draft law - the Insurance Business Law (Lov om forsikringsvirksomhed) - putting the text out for consultation until 14 September.
The FSA, which is an agency under the Ministry of Industry, Business and Financial Affairs (Erhvervsministeriet), said: “The main purpose of the bill is to separate insurance companies from the Financial Business Law.”
It said that provisions relating to insurance companies in the Financial Business Law, which governs financial companies including banks and insurers, (Lov om finansiel virksomhed) were being continued in the proposed act.
“A separate law on insurance business is hereby established with the aim of creating increased clarity and an overview of the regulation,” the FSA said, adding that the existing rules relating to insurance companies would continue without material changes.
Industry association Insurance & Pension Denmark (IPD) welcomed the draft legislation, calling it a “major milestone” for the sector.
Kent Damsgaard, chief executive officer of IPD, said: “Our sector has long wanted our own law, and that wish has now moved a little closer to reality with today’s consultation.
“Banks are fundamentally different from insurance and pensions. It will be good to separate the areas and make it clearer what is what,” Damsgaard said.
According to the FSA, the new bill is expected to be put before parliament in November 2022.
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