Licences & Regulations

Saxo Bank A/S (Saxo) is the parent company of the Saxo Group and is under supervision by the Danish Financial Supervisory Authority (the Danish FSA). Saxo received its banking licence in 2001 and is a licensed credit institution, which is the only licence which allows a financial company in Denmark to receive deposits from the general public.

Saxo Group further holds a banking licence in Switzerland and financial licences in the United Kingdom, Singapore, Italy, and Japan, and is subject to supervision by local authorities in each of those jurisdictions.

Licence Details: Saxo Bank A/S, company registration no. 15731249, licence no. 1149. Danish Financial Supervisory Authority (the Danish FSA), Strandgade 29, 1401 København K.

• Danish Financial Supervisory Authority website (in Danish)
• List of financial licences of the Group

In June 2023, Saxo was classified as a systemically important financial institution (SIFI), a classification that is only given to institutions that are deemed to be of particular importance to the national economy. SIFIs are subject to significantly higher capital requirements, including a so-called SIFI buffer and a higher requirement for liabilities that can be used for recapitalisation, ensuring that Saxo can continue to operate in the event of a crisis, ideally without losses being attributed to the bank's depositors and unsecured creditors.

SIFIs are under stricter control by supervisors and face increased requirements in a number of other areas, such as increased reporting and disclosure requirements, intensified oversight by supervisors, as well as stricter requirements for members of the board, executive board and key employees.

SIFI report from the Danish FSA (in Danish)

Saxo is a member of the Danish Depositor and Investor Guarantee Scheme (DGS). Under the DGS, the Danish Guarantee Fund covers depositors' registered cash deposits up to an amount equivalent to EUR 100,000 per depositor in case Saxo becomes subject to resolution proceedings or bankruptcy proceedings.

Saxo has a regulatory obligation to protect its client assets, and as a general rule, client financial instruments — such as stocks and bonds — will be returned to clients in the event Saxo becomes subject to resolution or bankruptcy proceedings. Nevertheless, if Saxo fails to return financial instruments belonging to investors, the Guarantee Fund will cover losses suffered by an investor up to the equivalent of EUR 20,000. An investor will only receive coverage up to an amount equalling the value of the financial instruments which could not be returned.

The DGS and the Guarantee Fund are administered by Finansiel Stabilitet, an independent public company owned by the Danish state through the Danish Ministry of Industry, Business and Financial Affairs. Financial companies in Denmark such as credit institutions, investment firms, and branches of non-EU-based credit institutions are required by law to participate in — and pay contributions to — the DGS.

The DGS covers deposits from all clients of Saxo's parent company, Saxo Bank A/S, and its UAE, Czech Republic, French, Belgian, and Dutch branches, excluding deposits from certain financial companies such as financial institutions, insurance companies, and pension funds. Clients of Saxo's subsidiaries in Switzerland, Italy, the UK, Japan, and Singapore should visit their local Saxo websites for country-specific information.

Danish deposit guarantee details (in Danish)

Supervisory practices vary across national borders even within the EU. The Danish FSA conducts on-site inspections of all regulated banks in Denmark on a regular basis depending on the size and risk profile of the institution. Reports from these inspections are required to be published by all institutions on their webpage following inspections. For SIFIs, theme-based inspections are performed regularly, and inspections occur more frequently than for smaller institutions.

The EU's regulatory requirements on the financial area implement the Basel Committee on Banking Supervision (BCBS) standards for international banking regulation. The BCBS is a cooperation of central banks and supervisory authorities from 28 countries. The standards developed by the committee are known as the Basel III framework, however, these standards are not directly applicable as regulation in Basel member states. This means that while the BCBS does not possess supranational authority, and its decisions do not have legal force, the BCBS relies on its members' commitments to implement the BCBS standards as applicable legislation.

In the EU, the BCBS standards form the backbone of the EU's Capital Requirement Regulation (CRR) and Capital Requirement Directive (CRD), now in their third and sixth versions respectively, with CRR3 applying from 1 January 2025 and CRD6 expected to be implemented in Denmark in 2025. The CRR is a binding EU regulation which applies directly in all EU Member States, including Denmark, whereas the CRD is implemented into national regulation in Denmark primarily through the Danish Financial Business Act and the Executive Order on Management and Control of Banks.

The overall governance requirements for banks in Denmark are included in the Danish Companies Act and in the Danish Financial Business Act. Further regulation exists on a national level in a number of executive orders which have their legal basis in the above-mentioned acts. These, together with guidelines from the European Banking Authority (EBA), set out the requirements in terms of the responsibility of the board of directors and the board of management to ensure the proper functioning of Danish banks.

Under Danish company law and financial business law, the general assembly is the highest authority for limited companies, and it elects the board of directors which is responsible for appointing the board of management. In the two-tier management system under which Danish banks operate, the board of directors decides the business model, overall organisation and structure as well as the strategic management of the company, including policies, risk profile and risk strategy, and supervises the board of management. The board of management is tasked with the daily management of the company.

SIFIs are required to maintain a board risk committee, an audit committee, a remuneration committee and a nomination committee.

The board risk committee is responsible for monitoring the risks of the company and shall be composed of members of the board of directors with adequate competencies to monitor the risk profile of the institution. It shall advise the board of directors on risk matters and oversee that the risk strategy is implemented correctly.

The audit committee is required according to the Danish audit law and shall inform the board of directors about the results of the audit of the company and monitor the accounting process and the internal control system.

The remuneration committee shall oversee the remuneration policy and remuneration practice of the institution under the risk profile and capital situation of the institution.

The nomination committee shall propose candidates to the board of directors and evaluate professional competencies to ensure that the structure, composition and qualifications of the board are adequate.

Banks including SIFI banks are required to have independent internal control functions in terms of a risk management function and a compliance function. These two independent control functions are referred to as the second line of defence with the first line being business units and the third line the internal audit function. The risk management function is responsible for ensuring that all risks are identified, monitored, reported and managed in the company. The compliance function is tasked with ensuring that the institution has efficient procedures for being in compliance with the combined regulation.

For SIFI-institutions, members of the board of management, members of the board of directors as well as certain key staff are required to be assessed fit and proper subject to approval by the Danish FSA. A fit and proper assessment requires adequate qualifications, knowledge and experience. Furthermore, said persons must be reputable and display decency, integrity and independence in performing their duties. The Fit & Proper requirements shall be met before taking up responsibility and apply throughout employment.

The Danish Financial Business Act decides that the relationship between the client and the bank is confidential. This means the members of the board of directors, members of the board of management and other employees are subject to confidentiality rules requiring them not to pass on client information unjustifiably. Confidential information means any information which is not publicly available including information on client identity, accounts etc.

Saxo is subject to the EU General Data Protection Regulation (the GDPR) which sets out the rules under which Saxo can process clients' personal information. Under the GDPR, Saxo is generally obligated to ensure that clients' personal information is adequately protected and that any handling or processing of such personal information is performed in a transparent way and for legitimate purposes only.

The Saxo Group is required to have a data protection officer whose responsibility it is to ensure that Saxo and the Saxo Group adhere to the GDPR ruleset.

Banks are required to operate in accordance with honest business principles and good practice within their field of activity. The basic principle is that banks are required to act in a decent and loyal fashion towards clients. Furthermore, rules on marketing practice require banks to adhere to fair commercial practices.

Subject to Danish implementation of the EU Markets in Financial Instruments Directive (MiFID), the transposed directive applies to Saxo. MiFID requires institutions to act honestly, fairly and professionally in accordance with the best interests of clients. When providing investment advice or portfolio management, the institution shall obtain the necessary information regarding the client's knowledge and experience, financial situation, ability to bear losses, and investment objectives — so as to recommend services and instruments that are suitable for the client. Higher investment protection rules are secured for retail clients compared to eligible counterparties and professional clients.

Saxo is required to execute client orders according to the best execution principle, following which firms must take all sufficient steps to achieve the most advantageous transaction in terms of price and the lowest total explicit and implicit costs to investors when placing or transmitting orders in the market.

• Order Execution Summary (PDF)
• Saxo's dedicated MiFID page

Danish AML & CTF legislation is based on the EU AML framework, including the AML Directive (AMLD6) and the new EU AML Regulation (AMLR), which will introduce a single rulebook from 2027. The purpose of the rules is to combat crime and terrorism by limiting how the financial system can be used for money laundering and terrorist financing, and to enhance authorities' ability to conduct investigations. Denmark is a member of the Financial Action Task Force (FATF) and ranks as one of the least corrupt countries in the world according to the Corruption Perceptions Index.

Under EU and Danish AML legislation it is a requirement for banks to know the client (know-your-client principle or KYC). KYC is ensured via proper documentation of the client relationship, ongoing monitoring for suspicious transactions, and identification of Politically Exposed Persons (PEPs).

Saxo Bank

Saxo Capital Markets

Member Information Table (GIIN)