“Confidence in the system is vital for the financial system to contribute as much as possible to the prosperity and continued growth of Denmark. Our job is to help ensure that consumers and corporations are able to make financial choices in the knowledge that we are there to protect their interests," said Jesper Berg, Director General at the Danish FSA.
The basis for the strategy is that the economy seems to be slowly improving following the financial crisis. In Denmark, the financial sector is now stronger than before the crisis. This exposes the Danish FSA to new challenges.
"Historically, the seeds for problems are sown in good economic times. We want to ensure that financial corporations consolidate and show prudence so that they are better prepared for the next economic downturn," said Jesper Berg.
Seven focus areas
The Danish FSA's new strategy encompasses seven focus areas which will figure prominently in its work up to 2020. The Danish FSA will exert pressure on financial corporations to show prudence in good times, and take initiatives to analyse the interaction between financial corporations and the associated systemic risks.
The Danish FSA will also upgrade on cyber risk and the changes associated with digitisation in the form of new business models. At international level, the Danish FSA will work to ensure that EU regulation respects the salient features of the Danish financial system.
In capital markets, new EU legislation will entail new tasks for the Danish FSA, and in the consumer area, the Danish FSA will help ensure that consumers are offered suitable products and that they can make informed choices. Finally, efforts will be intensified to prevent money laundering and financing of terrorism.
Facts about the Danish FSA's new strategy:
The Danish FSA's new strategy "Justified confidence - well-functioning financial markets" has seven focus areas and runs until 2020.
A well-functioning financial supervision will enable consumers and corporations to make financial choices with a high degree of confidence, contribute to a well-developed financial system and thus promote prosperity.
The seven focus areas of the strategy are:
Supervision in good times
Supervision with a systemic perspective
Well-functioning capital markets
Technology, cyber risk and new business models
Safeguarding Danish interests in international fora
Prevention of money laundering and financing of terrorism.
Read the full strategy in English.