While this translation was carried out by a professional translation agency, the text is to be regarded as an unofficial translation based on the latest official Executive Order no. 778 of 11 August 2005. Only the Danish document has legal validity.
September 2005, GlobalDenmark Translations
Executive Order on Appointed Actuaries in Company Pension Funds1)
Executive Order no. 778 of 11 August 2005
Executive Order no. 778 of 11 August 2005
The following shall be laid down pursuant to section 9c; section 26(6); and section 71(5) of the Supervision of Company Pension Funds Act, cf. Consolidated Act no. 1266 of 19 December 2003, as amended by section 1 of Act no. 1381 of 20 December 2004:
The appointed actuary
1.-(1) Employment and dismissal of the appointed actuary may only be carried out by the board of directors.
(2) The position as appointed actuary shall not be compatible with the position as a member of the board of management or the board of directors of the pension fund.
2.-(1) The appointed actuary shall hold a university degree in actuarial mathematics from a Danish university, cf. however section 3.
(2) The appointed actuary shall have had post graduate experience from practical actuarial work in
life assurance companies or lateral pension funds (nationwide occupational pension funds) which fall within the scope of the Financial Business Act
pension funds covered by the Supervision of Company Pension Funds Act, or
(3) The appointed actuary shall have participated in the practical actuarial work mentioned in subsection (2) for no less than five years within the past ten years. No less than one out of the five years shall include close cooperation with a appointed actuary in one of the undertakings mentioned in subsection (2). The appointed actuary shall as a minimum have obtained an in-depth knowledge of the preparation of notifications; bonus schemes; technical statements, including calculation of solvency requirements; calculation of provisions; and preparation of the annual report for the Danish FSA.
3.-(1) The board of directors may engage as appointed actuary any actuary holding a degree from an institution in another country if the degree covers Master's level exams in actuarial mathematics (life assurance) and risk analysis, and has been supplemented by courses on Danish supervisory legislation.
(2) The board of directors may engage as appointed actuary a person with a related degree, such as MSc (Mathematics), MSc (Statistics), and MSc (Mathematics and Economics), or similar foreign degrees, if such degree is supplemented by Master's level exams in actuarial mathematics (life assurance) and risk analysis as well as courses on Danish supervisory legislation.
4.-(1) The Danish FSA shall be informed of the engagement of a new appointed actuary no later than 14 days after his or her engagement.
(2) When submitting notification of the appointment of a appointed actuary to the Danish FSA, the board of directors shall submit a statement to the effect that the appointed actuary meets the requirements stipulated in section 2, cf. however section 3.
(3) If the appointed actuary is dismissed or resigns as appointed actuary, the board of directors and the appointed actuary shall submit separate accounts of the reason for such termination of work to the Danish FSA no later than 1 month after the date of termination.
5. The appointed actuary shall have access to all information that he or she considers necessary to the execution of his or her duties, including the minutes of meetings of the board of directors. The Danish FSA may request from the actuary the information necessary to assess the financial position of the pension fund.
6.-(1) The board of directors shall prepare a job description for the appointed actuary.
(2) The job description shall contain an overall description of the tasks to be performed in the capacity as appointed actuary.
(3) In pension funds where other employees carry out tasks for the appointed actuary, the job description shall include an overall statement of the division of tasks. The job description shall also include overall guidelines for the delegation of tasks by the appointed actuary, including the appointed actuary's subsequent supervision of the tasks delegated.
(4) In pension funds with less than 100 members, defined as persons whose occupation entitles or will entitle them to receive pension benefits from the pension fund, the board of directors may omit to prepare a job description for the appointed actuary.
7.-(1) The appointed actuary shall submit a report to the Danish FSA annually.
(2) The Danish FSA shall receive the report no later than one month after the general meeting of the pension fund has approved the financial statements for the year to which the report pertains.
(3) Upon application, the Danish FSA may grant exemptions from the time limit set out in subsection (2).
(4) The Danish FSA shall prepare guidelines regarding the content of the appointed actuary's report.
The appointed actuary's statement to the board of directors
8.-(1) The appointed actuary shall, in connection with the adoption by the board of directors of the annual financial statements, prepare a written statement to the board of directors.
(2) The statement to the board of directors shall contain all essential conclusions which are stated in the actuary's report to the Danish FSA regarding the financial statements for the year to which the report pertains and which are of relevance to the presentation of accounts.
(3) The statement shall include a list of the notifications made during the year and any comments related to these.
(4) The statement shall state whether the appointed actuary has received all the information requested.
(5) If the appointed actuary's review reveals that the annual financial statements, according to the appointed actuary, do not present a true and fair view of the actuarial conditions of the pension fund, the statement shall disclose separately information to this effect.
(6) The statement shall be signed by the appointed actuary and shall be presented to and signed by all the members of the board of directors.
(7) The Danish FSA shall receive a copy of the statement no later than ten days after the final adoption and approval of the financial statements.
(8) The board of directors shall be made familiar with all other essential conclusions in the actuary's report to the Danish FSA, in addition to the ones mentioned in subsection (2), no later than at the same time as the report is submitted to the Danish FSA.
(9) In pension funds with less than 100 members, defined as persons whose occupation entitles or will entitle them to receive pension benefits from the pension fund, the appointed actuary may omit to prepare a written statement to the board of directors.
9.-(1) Any person violating section 1(2); sections 4 and 5; section 6(1)-(3); section 7(1) and (2); and section 8(1)-(8) shall be liable to a fine.
(2) Companies, etc. (legal persons) may incur criminal liability according to the regulations in chapter 5 of the Criminal Code.
Entry into force and transitional provisions
10. This Executive Order shall enter into force on 23 September 2005.
11.-(1) No later than on 31 December 2005, the board of directors shall
prepare a job description in accordance with section 6, and
confirm the engagement of an actuary as appointed actuary, cf. section 4(1), approved by the Danish FSA pursuant to section 26(1) of the Supervision of Company Pension Funds Act, cf. Consolidated Act no. 1266 of 19 December 2003.
(2) Confirmation of engagement shall not apply to appointed actuaries whose employment is terminated before 31 December 2005.
The Danish Financial Supervisory Authority, 11 August 2005
1) This Executive Order contains provisions that implement parts of European Parliament and Council Directive 2003/41/EC of 3 June 2003 on the activities and supervision of institutions for occupational retirement provision, (Official Journal 2003 L 235, p. 10) (Occupational Pensions Directive).